Intellectual Property (IP) has been gaining prominence around the world. The significant effect that IP is making in the market is unbelievable. Likely with the huge pattern of IP mindfulness the organizations are turning out to be increasingly more constant in rigorously making shielding their IP without limit. Effective and timely registration of IPs is now what the company strives for. Powerful and ideal enlistment of IPs is currently what the organization makes progress toward. They can’t face any challenge with regards to their IPs, since it is the IP that determines benefit for the organization. One of the reports delivered by WIPO, it expressed a portion of the astonishing realities which repeat the great worry of how significant the IP audit can be.
IP audit facts
- In the US, nearly 40% of the market value of an average company is absent from its balance sheet.
- In the EU more than half of all large companies leave IP outside the scope of internal audits.
- In 2005, Qualcomm generated about 58% of its $5.7 billion in revenue from the sale of Qualcomm‐designed wireless chips, which are manufactured by third parties under contract.
- Since 1993, IBM has been making some US$1 billion per year from licensing non‐core technologies, which otherwise would have remained.
- In Europe, 36% of patents are not used.
- In 2002, Korea exported technology worth US$0.6 billion and imported technology worth US$2.7 billion through licensing R&D sharing, and Joint Ventures.
- Since 2002 Korea has increased its R&D expenditure from 2.6% of GDP in 1998 to 3.4% in 2004.
- In New Zealand, SMEs account for 37.3% of GDP and have the highest profits per employee, but most SMEs are unaware of the value of their IP or the fact that there is a good chance that it is being infringed.
- The Coca‐cola brand is estimated to be worth US$80 billion.
- US companies have a fiduciary responsibility to manage IP rights and to report actual company value rather than just book value under the Securities Exchange Act 1934.
Intellectual Property Auditing Basics
A business possesses, procures, or utilizes IPs in different fields which require an efficient survey. The survey of IPs in an organization is for the most part what is known as an IP review. This review helps in organizing and surveying any danger implied in taking IP forward. The review explains any such danger which the organization can take a note of and structure the cure that can be required. The review firm will audit all the strategy and consistency techniques which will additionally assist the business with organizing their IP and examine them. A couple of the appropriate inquiries that may find solutions are: what IP is possessed by the organization and what is obtained? What amount of them are being used? Is there any IP that is encroaching others’ IP? What amount of them are being used? All such answers will make the organization more productive, as far as its dynamic interaction. IP techniques are the main viewpoint for the organization. This IP methodology can be more organized and centered through an effective IP audit, making the entrepreneur in a greatly improved situation to choose the future of the organization.
Types of Intellectual Property Audit
In general, we have three types of IP audit which are general-purpose IP audit, event-driven IP audit, and limited purpose IP audit.
Finally, the limited purpose IP audit is done for such situations where there is a constraint schedule. Such audits are done for a purpose, mostly for substantiating the position of the company with regards to a particular IP.
The list of Global IP Firms can be found here.