Emma Lyons and Rachel Mercer
Intellectual Property (IP) is an important asset of any business; it provides security over the business’ innovation and branding and can be essential when looking to attract funding and investment. However, identifying the IP rights which are relevant to your business can be a challenging task.
An IP audit provides an overview of the IP rights that are relevant to your business and provides recommendations on how you can improve your business’ IP position.
What is an IP audit?
An IP audit is a comprehensive review undertaken by an IP professional, such as a patent or trademark attorney, which details your existing IP rights and looks at other existing or future IP which could be protected. IP audits focus on all IP rights relevant to your business, including patents, trademarks, copyright, and (registered and unregistered) designs. The audit may also discuss potential issues relating to IP owned by third parties. The IP professional will work closely with you to understand your business model and strategic goals and tailor the audit to meet these requirements.
The audit will also provide guidance on managing your IP portfolio, dealing with contracts and licensing agreements and handling confidential information, including trade secrets and know-how.
What are the benefits of an IP audit?
An IP audit can assist you in identifying and prioritising your IP, which will provide your business with a commercial advantage. Additional benefits of the IP audit include:
- identification of new markets and revenue streams;
- identification of previously under-appreciated assets;
- assistance in securing funding and investments by demonstrating the value of key assets; and
- guidance on the implementation of appropriate contracts and licensing agreements when dealing with third parties.
How to obtain an IP audit
Businesses can self-fund an IP audit by contacting an IP professional. The cost of the audit will vary depending on the required depth and purpose of the audit.
Alternatively, small and medium-sized enterprises (SMEs) can apply for a part-funded IP audit through the UKIPO IP Audit Scheme. The cost of an IP audit under this scheme is fixed at £3000 with businesses receiving a grant of £2500 towards this cost. Applications must be submitted to the UKIPO through one of the IPO’s partner support schemes, which includes Innovate UK Edge, Scottish Enterprise, the Highlands and Islands Enterprise, or the Welsh Government. The IP audit is then carried out by an IP professional selected by the business.
An IP audit can be conducted at any stage of a business’ development, but may be particularly useful before a significant investment or scale-up of activities, or before expanding the business in a new direction.
Appleyard Lees has extensive experience in conducting IP audits, in securing IP rights and also assisting companies in the development of their IP strategies. If you have any questions or would like any more information about IP audits, please contact Rachel Mercer at Appleyard Lees.