IP or Intellectual Property is such property which is a product of our human intellect and when such is being used in companies it holds more value than that of the physical assets. There are certain companies for which IP plays a big and relevant part like which are based on knowledge and innovation and also few others which carries a heavy brand value. Therefore, it is very much required for such companies to have a good idea about the values of their Intellectual Properties and also to have a knowledge as to acquiring intellectual property provides maximum gain to the organization. For this, conducting IP audit is a prime essential thing for a company.
IP audit helps in assessing the IP portfolio of a company. Through the audit, the potencies of an IP asset can be figured out and also its limitations. This is very much required for a company as it will provide a clear direction to the company as to what are the specific technologies required for the development. If the company wants to involve itself into any M&A, the audit helps in deciding which target to choose over the other in order to get a competitive edge.
There are many other benefits of IP audit and keeping in mind the changing patterns and competition in today’s world it is all the more necessary for a company to have a track over their own assets. Like if a company wants to indulge into a license agreement with another company it is always better to know prior hand the worth of their own assets to crack a lightening deal and also to earn maximum revenue. This will in turn increase the market value of the company and help in taking other significant decisions.
It is always seen that companies, if they maintain a well managed IP registers, it helps in recognizing all the outmoded IP assets thus reducing the expenditures that are generally made to maintain such intellectual properties.
