Identifying the Intellectual Property (IP) rights that are relevant to your business can be a challenging task. IP is an important asset of any business; it provides security over the business’ innovation and branding and is essential when looking to attract funding and investment.
An IP audit provides an overview of the IP rights that are specifically 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, trade marks, copyright, and (registered and unregistered) designs. The audit may also discuss potential issues relating to IP owned by third parties. An IP professional will work closely with you to understand your business model and strategic goals and tailor the audit to meet these requirements.
An IP 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.
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.
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 depth and purpose of the audit.
Last year, the UK IPO announced the launch of ‘IP Advance’, which is a tiered funding programme that offers financial support for small and medium-sized enterprises. The programme is designed to provide advice tailored to businesses and help them to understand the IP rights available to them, assist them in developing an IP strategy and support the implementation of that strategy.
Two levels of support are available through the IP Advance programme:
- The IP Audit scheme offers SMEs funding of up to £2,250 to contribute towards an IP audit. The cost of an IP audit is fixed at £3,000 and the business will have to pay the remaining £750. The IP audit is carried out by an IP professional selected by the business.
- The IP Access scheme offers SMEs up to £2,250 to contribute towards advice or services from an IP professional (e.g. preparation of patent applications) in relation to implementation of an IP management strategy or recommendations from the IP audit. Businesses must contribute a minimum of 50% towards the cost of the services carried out by the IP professional to qualify for the support.
Businesses can apply for one or both support schemes. Applications must be submitted to the UK IPO through one of the IPO’s partner support schemes, which includes Innovate UK Business Growth, Scottish Enterprise, Highlands and Islands Enterprise, Invest Northern Ireland or the Welsh Government. The IP audit is then carried out by an IP professional selected by the business.
Our IP specialists at Appleyard Lees have extensive experience in conducting IP audits, securing IP rights and assisting companies in the development of their IP strategies.
If you have any questions or would like any more information about IP audits, please don’t hesitate to contact Senior Associate and Patent Attorney, Rachel Mercer.
