Why conduct an IP Audit?
- Because we often don’t know what we already have
- the lack of proper records may lead to the loss of rights (e.g. by failing to renew protection or by not using registered trademarks).
- Because protection does not work ‘automatically’
- merely having a logo, design, technology or name usually does not mean they are protected. An audit reveals what in your business requires registration.
- Because IP is part of your assets
- intellectual property rights can account for the majority of a company’s value. An audit can show you how to increase that value!
- Because it helps avoid disputes and costs
- an audit identifies potential infringements of third-party rights and enables faster reactions to infringements of your own rights. It also allows you to implement measures that minimise or even eliminate risks!
What does an IP audit cover?
An audit covers trademarks, industrial designs, utility models, patents, as well as copyright, trade secrets, and know-how.
Step by step – Process overview
As part of the audit, an inventory of the existing rights is carried out. Then, an assessment is made as to whether everything is properly protected and whether the protection in place is adequate. The audit also takes into account the risks of losing rights. An important element is also the analysis of contracts and protective clauses, particularly licences, NDAs, employment contracts, B2B agreements, and cooperation rules with creators.
The analysis may also include the risks associated with infringing third-party rights.
The entire process concludes with a set of recommendations: corrective measures and preventive actions.
Inventory of rights
This stage consists of determining which rights the company actually holds (registered and unregistered, including those arising ‘automatically’ under the law).
An important part of the inventory is also establishing who owns each right, how the rights were acquired, and whether the documentation relating to them is complete. The next step is to verify whether any changes to the scope of protection are needed, for example, due to the production of new goods under an existing name previously used for other products; whether, in connection with a logo rebranding, there is a need to register it as a trademark; or whether the packaging of a new product requires protection as an industrial design.
The audit also includes an assessment of whether the chosen protection strategies correspond to the company’s actual expansion, i.e., whether the territorial scope of protection for particular rights should be extended.
The audit takes into account the risks of losing rights as well, such as the non-use of a trademark, which may result in its cancellation.
Analysis of agreements and protective clauses
This stage is one of the most critical, because even the best-designed IP strategy may prove ineffective if it is not supported by solid documentation!
The analysis of licence agreements makes it possible to determine, among other things, whether:
- the agreements are up to date,
- the agreements are complete, i.e., whether we truly have the right to use a given material, logo, content, technology, etc.,
- the scope in which we may use them is properly defined (whether the agreement includes territorial limitations, restrictions on the method of use, or limitations on further sharing or sublicensing).
Confidentiality agreements are equally important, as are provisions concerning AI, which protect know-how and confidential information and often help prevent the disclosure of designs or inventions, or protect us from infringement.
Particular attention is also paid to employment contracts and agreements with subcontractors (e.g. marketing agencies) in the context of transferring copyright. An audit helps identify the most common gaps: insufficiently defined terms, the absence of clearly specified fields of exploitation, or the lack of a clause transferring economic copyrights, which may lead to disputes or limit the ability to fully use the results of someone’s work.
Recommendations
These typically fall into two categories:
- Corrective actions, such as filing new rights for protection, extending existing protection, supplementing documentation, agreements or internal policies, or initiating the use of trademarks.
- Preventive actions, such as monitoring newly filed trademarks, monitoring market infringements, employee training, maintaining an IP rights register, implementing procedures governing the creation and use of IP, conducting periodic audits, analysing new products before they are launched, and introducing specific procedures for cooperation with subcontractors and business partners.
Audit as an IP Management Tool
A regular IP audit is not a cost but an investment in the company’s security and growth. It enables control over key assets, minimises the risk of disputes, and at the same time helps strengthen the company’s position on the market.
If you would like to learn more about how an IP audit can support your business or are considering carrying one out in your organisation, our Intellectual Property team will be happy to assist. Feel free to contact us or explore our areas of expertise.