A systematic review: understanding the intellectual property audit.

• Author: Nichols, Timothy D.
• Position: INTELLECTUAL PROPERTY

Regardless of what industry you're in, it's likely that your business is regularly using and creating intellectual property (IP), including goods and services, publications, artwork and methodologies. In general terms, IP is any product of the human intellect that the law protects from unauthorized use by others. Common types of IP rights include copyrights, trademarks, patents and trade secrets.

IP is an asset that, if neglected, can be left dangerously exposed and exploited by competitors. However, if wisely used and protected, IP can give any business a competitive edge. Income can be generated through licensing, sales and commercialization of IP. It can also be used to attract business partners and raise capital. Businesses in a wide range of sectors from financial services to bio-technology spend significant amounts of money to improve IP and acquire new IP.

For many businesses, the returns from IP have amounted to millions of dollars. Provo-based Blendtec is a good example. Blendtec won a $24 million patent infringement award after a Utah federal district court found that Vitamix infringed two of Blendtec's patents. Following the decision, Tom Dickson, founder and CEO of Blendtec, said: "This decision sends a strong message to those who would attempt to profit from the labor and ideas of someone else. Truly it's a win for America's visionaries, innovators and entrepreneurs, who build dreams, create jobs and positively impact the economy."

REALIZE IP VALUE

All businesses have the potential to reap the benefits of their IP. No matter the age, size or industry, almost any business can participate in the IP marketplace. But a common problem is that many businesses are unclear as to what IP they have and what value it brings to the business, resulting in lost income. How can businesses better realize the full value of their IP? A great place to start is by conducting an IP audit.

An IP audit is defined as a systematic review of the IP owned, used or acquired by a business. IP audits can help assess, preserve and enhance IP; correct flaws in IP rights; put underutilized IP to work; identify successful and obsolete technologies; identify risks that a business's products or services infringe a third party's IP; and develop informed strategies. Understanding what IP is most importantly allows its full value to be realized and protected. Because IP rights are created and defined by intellectual property law, IP audits are typically conducted by...