What Is an Intellectual Property Audit and How Will It Help My Business?

DEREK FAHEY, ESQ.

An intellectual property audit, or IP audit, is a systematic review of the intellectual-property assets a business owns, uses, or has acquired. Its purpose is to uncover underused assets, identify threats to the company’s bottom line, and help decision-makers develop strategies that preserve and improve market value.

Identifying Hidden or Underused Value

Businesses conducting an IP audit for the first time are often surprised by the number and value of their intellectual-property assets. An audit can reveal brands, proprietary processes, training materials, software, content, inventions, and other assets that may support new products or licensing opportunities.

Finding Business and Legal Risk

An IP audit can also identify areas where a company’s products or services may infringe another party’s rights. Because intellectual-property litigation can be expensive and may not be covered by general liability insurance, identifying these risks early allows the business to evaluate avoidance, licensing, redesign, or specialized insurance.

Supporting Licensing and Growth Strategy

By cataloging valuable assets and identifying legal exposure, an IP audit gives management better information for licensing, acquisition, product-development, and risk-management decisions.