Using IP audits to make the most of your IP assets

With the global transition to a knowledge-based economy, the importance of intellectual property (IP) has skyrocketed, making it an indispensable part of business in today’s world. Until a few decades back this aspect of business was neglected as enterprises and businesses failed to appreciate its importance, focusing more on tangible assets such as buildings, factories and machineries, and not on intangible assets like trademarks, copyrights, patents and geographical indications. This recognition of IP and its importance has brought the concept of IP audits to the forefront.

IP audits are systematic reviews of IP owned by the enterprise and their related risks and opportunities. They involve analysis of IP owned, used and acquired by a business, and how it is managed, maintained and utilized. IP audits examine the IP assets and explain how they may be used by the enterprise to promote its business objectives and goals. They also help in identifying those IP assets not being utilized to their optimal potential. They can help examine, protect and enhance IP, and implement best practices for IP asset management.

Why audit IP?

Like tangible property, IP has to be identified, protected and maintained to maximize its value, diminish the possibility of third party abuse and prevent accidental loss. A thorough examination and analysis of intangible assets is extremely crucial as this allows enterprises to identify their IP assets and make decisions with respect to those assets. It also brings to the forefront any danger or possible infringement of the IP assets.

Manisha Singh is a partner and Raashi Jain is an associate of LexOrbis