When is due IP diligence performed?

IP due diligence is performed in the following contexts:

·Merger and acquisition or joint ventures: aiming to provide a basis for risk and value assessment of relevant IP assets in a proposed acquisition or sale of IP

·Financial transactions: aiming to determine the impact of IP assets on IP related financial transactions such as stock purchasing, security interests, initial public offerings, etc.

What are the types of IP audits?

Broadly speaking, depending on the objectives of the audit, there are two types of IP audits :

General IP audits: General-purpose audits draw an overall but comprehensive picture about the company’s IP assets. Such audits scrutinise the IP portfolio as a whole to review the businesses’ IP management approach, if there is one. If not, general IP audit is a core and fundamental step to develop an IP management approach and an IP-intensive culture within the company.

Why is IP audit important?

IP audit is an important business tool, which helps to:

·better identify and monitor the whole intellectual asset portfolio: by clarifying which intangible assets are owned, used or non-used and verifying the owners of these assets

·better secure the IP: by suggesting the most applicable and effective ways to protect the IP assets owned

·effectively exploit the IP: by showing whether the IP is efficiently exploited and by revealing the not used and/or underused IP assets

What is an IP Audit?

An IP audit is a systematic, thorough and solution-focused review of the intellectual assets owned, used or acquired by the businesses to ascertain their legal status, value, potential IP-related risks and the means for protection and to capitalise on them.

A formal IP audit serves two general purposes: (1) identification and evaluation of IP assets (2) anticipating and managing the risks that could be linked to the IP portfolio of the company.