The Intellectual Property Audit

417-424This article endeavours to elucidate on the intellectual property (IP) audit and focuses on comprehensive procedure of the same, not only from an organization’s perspective but from an auditor’s perspective as well. The article also dwells on India specific IP audits, which are tad different from the audits in developed economies, although incorporating a few steps from the standard audits would yield enhanced outcome. The second part of the article endows with the factual scenario of IP audits in India. While generation of IP has become a routine affair, the technique of its management and protection continues to remain unidentified by most businesses. Thus IP audit plays a significant role in serving the purpose of reaping benefits from the IP generated. Additionally, it plays a key role in a circumstance which involves private/public funded research. In such a research deriving profits, protecting IP generated and commercialization of the same cannot be disregarded given the magnitude of the investments involved. Although ensuring a return on investment from IP has become a norm in today’s economy, there still are entities whose primary focus is not generation and commercialization of their IP, but mitigating plausible risks that may arise due to negligence. IP audits have a pertinent role to play in such entities, as mitigating IP related risk is as important as its protection and management. One should also note that an IP audit is an optimum level exercise and seeks a high level focus for a profitable result. An uninformed mind coupled with non-co-operation from the entity in whole or part could not only cripple the effect of a sound/upright audit but also make it an expensive affair. Generally, an institution or the entertainment industry, like in the case studies illustrated in the article, may usually perform an audit every six months where generation of IP is frequent, while a technology based company can go for an audit once in two to three years based on their need/objective