Why and When to Perform Copyright and Intellectual Property Audits
One way to gain a better understanding of a company’s intellectual property assets is to perform a copyright and intellectual property audit. This is best done by a professional IP law auditor, such as an attorney specialising in intellectual property law. It is also beneficial to perform copyright and intellectual property audits internally, which will help to identify the company’s intellectual property assets and monitor growth in value.
Whether you want to buy a company, invest in the firm, liquidate I a company, or sell your business, the copyright and intellectual property audits help you to make informed decisions regarding the aspects briefly discussed below.
Acquiring Intellectual Property Assets
Knowing the value of the copyright and intellectual property assets in your firm helps you to decide which IP assets to obtain usage rights for. Knowing the value also helps you make informed decisions regarding the sale of particular IP assets and how to capitalise on specific copyright and IP assets.
Increase the Value of the Firm
Should you consider merging with another firm or perhaps a firm has shown interest in buying your company, you will want to perform copyright and intellectual property audits to gain a better understanding of the true value of your company. The future profits that can be generated from the particular IP assets are important for investors as they add to the future viability of the company.
Increase Cash Flow
Copyright and intellectual property audits can be used to determine the value of the firm’s IP assets for the purpose of licencing out the IP rights to another party. This will enable the firm to increase revenue and value.
Through the optimal structuring of your company’s IP asset portfolio, you are able to show the worth of the IP assets for the purpose of using it as surety to obtain an investment loan. In order to do the above, you will need an independent copyright and intellectual property audit.
Unless you know the value of your company’s intellectual property assets, it will be difficult to make a decision about whether or not to take legal action against an infringing party for compensation related to damages suffered. Copyright and intellectual property audits are thus important for the purpose of enforcing your rights to these assets.
Identify Worthless IP Assets
You may have acquired a company with a large IP portfolio. However, many of the intellectual property assets may be obsolete. Perhaps in your own firm, you have realised that although your IP portfolio seems impressive, many of the assets have lost their value over time. To determine which assets are truly worth managing, you can conduct a copyright and intellectual property audit. Armed with the necessary knowledge, you can determine which IP assets must be maintained, as this will help to reduce the cost of IP registration management.
Copyright and intellectual property audits entail systematic reviews of the various intellectual property assets of a firm. They also entail the identification of risks, potential, and opportunities related to each of the intellectual properties. These audits thus aid the company in the prevention of IP infringement from other parties and avoiding becoming the infringer. Gain legal guidance and assistance with auditing. Make use of our copyright and intellectual property auditing services for small, medium, and large firms in South Africa.
Disclaimer: This article is for information purposes only and does not constitute legal advice. Contact our attorneys for legal advice, rather than relying on the content to make legal decisions – May 2018.