Ip audit ppt

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Ip audit ppt

  1. 1. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com
  2. 2. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com
  3. 3. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Objective • To give a general introduction to the concepts of IP valuation and IP Audit • To briefly explain IP valuation and the key definitions like assets, IP assets, value and IP valuation, the differences between various methods deployed to value IP assets, IP audit, the preparations, procedures and results of an IP audit. 14jgls--tsabharinathan@jgu.edu.in 3
  4. 4. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com
  5. 5. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com
  6. 6. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Two Kinds of Assets • Tangible –Building –Machinery • Intangible –Goodwill –Intellectual Property 14jgls--tsabharinathan@jgu.edu.in 6
  7. 7. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com IP Assets • Intangible asset – knowledge based • Legal Right to exclude others from using • Limited duration • Assignable/ Licensable/Transferable – Can be bought, sold, licensed, or given away free • Multi-usable • Use does not exhaust 14jgls--tsabharinathan@jgu.edu.in 7
  8. 8. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Factors driving the intellectual property • Intellectual property derives its value from a wide range of significant parameters such as – Market share – Barriers to entry – Legal Protection – IP’s profitability – Industrial and economic factors – Growth projections – New Technologies 14jgls--tsabharinathan@jgu.edu.in 8
  9. 9. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Risks in IPAssetsRisks in IPAssets • New Patents • Revocation of Patents • Infringement Suits • Trade Secrets • Weak Enforcement Regimes 14jgls--tsabharinathan@jgu.edu.in 9
  10. 10. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Valuation (Definition) • Valuation is a process of determining value or worth of an asset • Valuation often combines objective and subjective considerations 14jgls--tsabharinathan@jgu.edu.in 10
  11. 11. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com IP Valuation Factors • IP valuation dependent on various factors –Use of the IP assets –Market share of company –Openness of economy –Legal protection of IP • Enforcement cost –Economic growth –Profile of economy 14jgls--tsabharinathan@jgu.edu.in 11
  12. 12. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Time in the Firm for IP Valuation  Quarterly for a well established firm  Annually for a start up firm  During merging with another firm  During Dissolution  During the formation of a new subsidiary  During expansion of operations  During diversification
  13. 13. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Use of IP Valuation 1 • For commercial transactions • For pricing product • For evaluating potential merger or acquisition candidates • For identifying and prioritizing assets that drive value • For strengthening positions in technology transfer negotiations • For making informed financial decisions on IP maintenance, commercialization and donation 14jgls--tsabharinathan@jgu.edu.in 13
  14. 14. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Use of IP Valuation 2 • For evaluating the commercial prospects fo early stage Research & Development (R&D • For Financing securitisation • For litigation • For tax planning 14jgls--tsabharinathan@jgu.edu.in 14
  15. 15. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Benefits of IP Valuation • Can give a better idea of the overall value of th business • Can provide a tool to measure and manage the assets • Can provide security and backing for lenders • Can provide taxation benefits (taxation deductions) • Can reduce the proportion of business’ net worth attributed to goodwill – important when selling a business 14jgls--tsabharinathan@jgu.edu.in 15
  16. 16. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com IP Valuation Methodologies • Transactional/Market Approach • Cost Approach • Income Approach 14jgls--tsabharinathan@jgu.edu.in 16
  17. 17. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Transactional/Market Method • Sales comparison approach • It is based on actual price paid for a similar or comparable IP under similar/comparable circumstances • Need complete data • Problem in getting full details • Two steps: screening and adjustments • Screening is identifying third party transactions • Adjustments are in Location, Advertising support, IP strength and period of licence 14jgls--tsabharinathan@jgu.edu.in 17
  18. 18. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Market Approach • When – Focus is on market transactions – sales/licenses – IP transaction details highly confidential – Assets typically not comparable • Different underlying IP assets • Different compensation structures • Different geographic territories • Different market potentials/degree of success 14jgls--tsabharinathan@jgu.edu.in 18
  19. 19. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Income Method/Discounted Cash Flow (DCF) Method • Attempts to determine the value of the IP by computing the present value of cash flows, attributable to that piece of IP, over the useful life of the asset. • Lack of specificity and detail regarding various risky normative factors (i.e., such as legal risk, technological risk, piracy, etc.) • Further, often DCF fails to consider dependencies on properties held by others. In roughly 40 percent of cases, patents depend on other patents or property held in the public domain 14jgls--tsabharinathan@jgu.edu.in 19
  20. 20. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Cost Method • Estimates the value of underlying IP asset basing on historical cost incurred in developing the asset • Two approaches • Replacement Cost: The cost to develop similar functionality to the subject IP outside the scope of the legal protection • Reproduction cost: Cost of reproducing the IP product or service or procedure 14jgls--tsabharinathan@jgu.edu.in 20
  21. 21. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Cost Approach: When? • Has limited value • Used for – Patents – Software – Designs • When – Asset is newly created with limited protection – Commercially untested – Where reproduction cost best estimate of value • Buyer unwilling to pay more than cost to recreate or engineer around protected design 14jgls--tsabharinathan@jgu.edu.in 21
  22. 22. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Factors Considered in Patent Valuation 1 • Qualitative and quantitative characteristics of the patent(s), including the specific patent claim • Earnings capacity and profitability relating to the patent(s) • The impact of known blocking patents • Any current or previous licensing of the patent • Legal rights and restrictions to the patent(s), including foreign patent protection 14jgls--tsabharinathan@jgu.edu.in 22
  23. 23. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Factors Considered in Trade Mark Valuation • Qualitative and quantitative characteristics of the trademark(s) • Earnings capacity and profitability relating to the trademark(s) • Market share supported by, or as a result of the trademark(s) • Market recognition analysis of the trademark(s) • Legal rights and restrictions to the trademark(s) • Contracts associated with the trademark(s) 14jgls--tsabharinathan@jgu.edu.in 23
  24. 24. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Factors Considered in Brand Valuation • Qualitative and quantitative characteristics of the brand name(s) • Earnings capacity and profitability relating to the brand name(s) • Market share supported by, or as a result of the brand name(s) • Market recognition analysis of the brand name(s) • Legal rights and restrictions to the brand name(s) 14jgls--tsabharinathan@jgu.edu.in 24
  25. 25. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com 2)IPAUDIT2)IPAUDIT14jgls--tsabharinathan@jgu.edu.in 25
  26. 26. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com IPAudit: What is It? • A systematic review of the IP assets owned, used or acquired by a business • IP Audit reveals – How the IP assets are being used or not used – Whether the IP assets used by it are owned by the company or others – Whether these IP assets are infringing the rights of others or others are infringing on those rights, and determine, in the light of all this information – What actions are required to be taken w.r.t. each IP asset, or portfolio of such assets to serve the relevant business goals of the company 14jgls--tsabharinathan@jgu.edu.in 26
  27. 27. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com IPAudit: Objective • To uncover under-utilized IP assets • To identify any threats to a company’s bottom line • To enable business planners to devise informed strategies that will maintain and improve the company’s market position “Overall purpose of an IP audit is to identify and assess all of the company’s intangible assets in order to conduct a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis to determine the valuable core assets and optimize their usage through a systematic long-term strategy” 14jgls--tsabharinathan@jgu.edu.in 27
  28. 28. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Steps ion IPAudit 1 • First Step: Investigation All things created, developed or used by the organisation such as, inventions, formulas, processes, devices or other technologies, creative works, such as music, books or computer video games, business information, including advertising, promotional materials, customer lists, prospect lists, pricing information, sales figures, financial projections and other materials 14jgls--tsabharinathan@jgu.edu.in 28
  29. 29. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Steps in IPAudit 2 • Second Step: Identification • Identify the readily identifiable IP – Trademarks – Copyrights – Designs – Patents – Product/process Know-how – Trade Secrets 14jgls--tsabharinathan@jgu.edu.in 29
  30. 30. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Steps in IPAudit- 3 • Third Step: Categorisation –Owner –Licensee –Licensor –Domestic –Foreign 14jgls--tsabharinathan@jgu.edu.in 30
  31. 31. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Steps in IPAudit 4 • Fourth Step: Itemize external or market influences – company brand – product brands – company and product get-up – Goodwill – product certification – export certifications – Regulatory approvals 14jgls--tsabharinathan@jgu.edu.in 31
  32. 32. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Steps in IPAudit - 5 • Fifth Step: Examine Enforceability • Legal Provisions and Economics • Administrative Action • Legal Steps –Civil Procedures –Criminal Procedures 14jgls--tsabharinathan@jgu.edu.in 32
  33. 33. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com An Inventory of IPAudit • Whether or not your IP rights are registered; • Whether you have any intellectual property issues and what to do to address them; • Who owns the rights and, if you not, identify any conditions that apply to their use; • An assessment of whether your IP is being used effectively; • Whether your rights are being challenged or threatened by others; • Whether you have an effective IP management and maintenance plan in place; and • Records of your IP creation and ownership. 14jgls--tsabharinathan@jgu.edu.in 33
  34. 34. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Content of an IPAudit Report 1 • Inventory issues – A catalogue of intellectual property assets, including disclosures, patents, trademarks, trade secrets, contracts, agreements, and so on • Rights issues – An understanding of rights that have been acquired, and whether they have been properly maintained; an understanding of those rights that have not been acquired and whether or not they should be • Ownership issues – Does the company have clear ownership over these assets? Has title been properly assigned by employees/consultants?14jgls--tsabharinathan@jgu.edu.in 34
  35. 35. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Content of an IPAudit Report 2 • Infringement issues – Are patents being used for which the company does not have rights? • Strategic issues – Are these assets being properly managed and exploited in alignment with the strategic objectives of the company? Are there restrictions to their use? • Deficiency issues – Are there patentable technologies currently not protected? Are there copyright and trademark registration applications to be filed? Are there affidavits of continued use of trademarks, maintenance fees to keep patents in force, and so on? 14jgls--tsabharinathan@jgu.edu.in 35
  36. 36. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com When to do an IPAudit? • General Purpose Audit: – As part of an ongoing IP asset management programme • Event Driven: – When a business is being bought, or sold – When you are enforcing or defending your IP rights. 14jgls--tsabharinathan@jgu.edu.in 36
  37. 37. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com
  38. 38. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Dow Chemical Company • IP Audit and asset management programme started in 1992 • Classified entire IP portfolio including 30,000 patents • A team of 9 people worked for 12 months analysing the patents and recommending maintenance or abandonment • $ 40 million saving by abandoning some patents • Started licensing which grew from $ 25 M to $ 250 M in 5 years. 38
  39. 39. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Remember ... • In 2005, Qualcomm generated about 58% of its $5.7 billion in revenue from the sale of Qualcomm designed wireless chips, which are‐ manufactured by third parties under contract • Since 1993, IBM has been making some US$1 billion per year from licensing non core‐ technologies, which otherwise would have remained unused. • Honeywell, in 2000, received a then record award of damages of US$127 million from Minolta for technology it hadn’t itself commercialized. 14jgls--tsabharinathan@jgu.edu.in 39
  40. 40. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com Remember ... • The Coca cola‐ brand is estimated to be worth US$80 billion. • US company Texas Instruments earns more from licensing its unused patent rights than from its products Need IP Valuation, Audit and an Asset Management strategy to optimise income and profit 14jgls--tsabharinathan@jgu.edu.in 40
  41. 41. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com
  42. 42. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com
  43. 43. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com
  44. 44. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Suite 132 & 133, Level 1, Midtown, Road No 1, Banjara Hills, Hyderabad - 500034. Tel: +91 - 40 - 6050 6009 EMAIL info@altacit.com WEBSITE www.altacit.com THANK YOU Questions 14jgls--tsabharinathan@jgu.edu.in 44

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