An intellectual property audit can be considered a number of things.  The first thing is that it is a snapshot of the position of a person’s intellectual property.  The second thing is that it can also be considered a directional sign to future intellectual property rights and research and development.
 
The process usually involves three stages.  The first stage is an educational process, to alert the subject, and his or her employees to the reasons for the audit and the nature of the process.  The second stage is the actual audit process.  The third and final stage is the development of a written report, its delivery and subsequent debriefing meeting with the subject organisation.
 
The process involves an interview with the subject, the main research officers and any other relevant staff.  This provides an outline of the history of research and development as well as an indication of future direction of those activities.  Once this information is obtained, it is possible to conduct the due diligence searches which are often necessary.  These may include searches in databases such as the trademarks, database, the patents database, the registered design data base, and identification of non registered rights such as copyright, and, common law trademarks.  The search may extend to overseas databases.
 
This information is then assimilated into a written report.  The report provides background information on pre-existing intellectual property or property that may have formed registered rights, but for which the opportunity has passed.  The report then goes on to identify current intellectual property, which may be the subject of pending applications or which may form the basis of prospective applications.  This section may also extend to national and international options, and usually includes an estimate of associated costs.  Finally, the report highlights matters that may be promising as the source of potential intellectual property rights and which should be followed closely for appropriate managerial consideration.
 
An intellectual property audit may form the first in a series of such audits.  If this occurs, the trends associated with intellectual property development and protection in a business entity, become very apparent.  The discipline of constant, regular revisitation to an overview of the intellectual property framework allows for very sophisticated management decisions.
 
The intellectual property audit is an essential tool for any organisation that wishes to identify, select, protect and exploit its intellectual property.

Author: Paul Thompson
Contact: +61 7 3229 2655  pthompson@fak.com.au