The Intellectual Property Audit

The Intellectual Property Auditby stuart meyer and rajiv patel Intellectual property has an importance today greater than before a significant acquisition of a technology or product. ever before. A generation ago, about 80% of a typical An audit may be performed in the early stages of a company’s assets were tangible (buildings, equipment, technology company’s formation to institute systematic and the like) and 20% were intangible, according to a study procedures for protecting and perfecting intellectual by the American Intellectual Property Law Association. By property rights, particularly for core technologies. An audit the turn of the Millennium, the relative value of tangible may also be used at critical junctures in a company’s life and intangible assets had essentially reversed so that cycle to ensure the continuing adequacy of such procedures approximately three-quarters of a typical company’s assets and to detect defects therein.were intangible assets.An intellectual property audit is also appropriate in It has become increasingly important for companies to conjunction with development of a major new product, keep track of the extent, quality, and use of their intangible particularly if such product carries with it a demonstrable assets, as well as to have processes and procedures in risk of infringement of the intellectual property rights place to create, inventory, perfect and use intellectual of others. For example, the development of a ...