Does Your Business Need an Intellectual Property Audit?

The Patent Office has recently announced that it is offering a number of small businesses an Intellectual Property Audit (an IP health check), with the intention of making businesses generally more aware of IP assets.

An IP health check covers some of the most neglected but important business assets.

What is an IP health check?

It is a comprehensive review of IP assets, owned or used by a business. It should identify how important such IP assets are to a business, and place a value on them.

Identifying IP assets in a business

A business will have identified its tangible assets (plant and machinery, property, stock). It should similarly identify its intangible assets.

If a business produces literature relating to its products or services (whether on leaflets or content on a website), it is likely to have copyright protection (provided certain requirements are met); such protection does not require any form of registration

Business names or domain names will be protected by the principle of “passing off” (the suggestion by one person that his goods or services are those of another). Alternatively, if appropriate criteria are met, a business may protect its name with a trade mark.

The products which a business produces may have copyright and design right protection (no registration of this is required). Registered protection, such as registered design rights, trade marks or (if particularly innovative) patent protection, may be sought.

Why is an IP health check important?

Assets such as business names and products create income. Such assets should be protected, so that business income is in turn protected.

Conversely, a business should be aware of IP which it uses but does not own. Does the business have permission to use such IP? Does the person providing the business with a product or service have appropriate IP ownership? If he does not, the business may be infringing someone else’s IP.

Business resources may dictate that a formal and comprehensive IP Audit is not possible; it is important, nevertheless, to be aware of use and ownership of such important assets.

The Patent Office’s highlighting initiative is therefore to be applauded.