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In one of our previous pieces, we discussed the IP audit. We discussed the basics of IP audit and how the industries need to understand the nitty-gritty of IP Audit. With intellectual property (IP) gaining prominence around the world, the impact that IP is making in the market is unfathomable. Probably with the large trend of IP awareness the companies are becoming more and more diligent in strictly making safeguarding their IP to the fullest. Effective and timely registration of IPs is now what the company strives for. They cannot take any risk when it comes to their IPs, since it is the IP that derives profit for the company.
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What is IP Audit?
We discussed this at length in our previous post regarding what is IP Audit. A business owns, acquires, or uses IPs in various fields which require systematic review. The review of IPs in a company is generally what is known as an IP audit. This audit helps in structuring and assessing any risk involved in taking IP forward. The audit clarifies any such risk which the company can take a note of and structure the remedy that can be required. The audit firm will review all the policy and compliance procedures which will further help the business to structure their IP and analyze them. A few of the pertinent questions that might get answers are: what IP is owned by the company and what is acquired? How much of them are in use? Is there any IP that is infringing others’ IP? How much of them are in use? All such answers will make the company more efficient, in terms of its decision-making process. IP strategies are the most important aspect for the company. This IP strategy can be more structured and focused through an efficient IP audit, making the business owner in a much better position to decide the future of the company.
Benefits of IP Audit
There are lots of benefits that come after conducting of IP audit. The primary and the most important is the evaluation of the IP that the company holds thereby providing a strong report about whether the strategic objectives of the company are met or not. In case, if not met, then the company can change their work or strategy. When we talk about the IP audit, one of the most useful purposes that it solves is to provide a strong division of techniques/strategy/products that serves the profitability of the company. The company can decide which are those assets that are not useful for the company and which are those which form the bedrock of the company. The company can decide to structure the management of their assets and evaluate on that basis. Therefore, the result of the IP audit will help in structuring the evaluation of IP.
This IP audit will also provide the benefits that an IP can give based on its assessment in the market. The assets value can see a great fluctuation based on the market condition and this audit can help in assessing the same. The company can decide on an alternate plan if the IP assets are not fulfilling the market needs or the royalties being paid do not fulfill the needs. Therefore, a change in the strategy is needed.
With the business objectives put at a higher pedestal, there is a strong need to align the IP management with that of the business model. IP Audit helps in structuring this alignment. Evaluation of IP and its relevance is what must be done at the priority and IP audit fulfills the same. The benefits that IP assets have in the market and how the company leverages it, have a lot to do with the alignment. Therefore this IP audit fulfills this purpose. Undoubtedly, the result of the IP audit can help the company to add a new dimension of strategy, thereby, creating a stronger stand in the market.