Intellectual Property Audits: A More “Diligent” Approach
July/August 2009
By: Randy J. Pritzker
Managing IP
Conducting an intellectual property (IP) audit is an important business process.
An IP audit can provide information to a potential investor or acquirer or licensee of a company about the company’s IP positions and risks. More specifically, it can insure that a company’s IP assets are being adequately identified, protected, and enforced. Often an IP audit results in a company adopting or changing an approach toward IP that adds value and reduces risk to the company.
At times, however, IP audits are deficient in a number of areas, leaving potential investors, acquirers, and/or licensees not only without meaningful information on which to base an informed decision, but also greatly exposed.
Although IP audits may differ depending on their purpose and the particulars of the company—its maturity, marketplace, development process, etc.—there are some common areas that should be covered in most IP audits.
