IP audits: a wise investment in business strategy

An intellectual property audit – which is simply a detailed and expert assessment of a company’s IP assets – is a useful tool to align the strategies and goals of the organization with its existing IP assets. The overall business environment is always changing, and it is important for the R&D department to stay informed as to the current value of the company’s IP.

Apart from various kinds of IP, a company may also hold information pertaining to existing and potential customers, distribution networks, marketing strategy, manufacturing practices and R&D capabilities. This information is potentially very valuable, but also a source of vulnerability if mishandled. Assessing the status and commercial importance of such a diverse and extensive range of assets and information is therefore an important task; while being painstaking and tedious.

Given the difficulties and potential risks and rewards involved in the management of IP, an IP audit undertaken by a team of experts has many benefits: a) it can provide an immediate picture of the company’s assets; b) it can enable the development of an ongoing IP monitoring system; c) it can enable the formulation of appropriate procedures and guidelines to protect and enhance the commercial value of the IP assets; and d) it can identify improvements that can be made to the company’s IP strategy.

Monika Rani Gadgala is a patent engineer and leads the engineering team of the patent and analytics department at Clairvolex Knowledge Processes, a Delhi-based legal outsourcing firm.