Understanding your Intangible Assets: Why IP audits can help Startups and SMEs

2 mins

For startups and SMEs, intellectual property (IP) is often one of the most valuable assets.

However, many smaller companies overlook the importance of managing and protecting their IP effectively. This is where an IP audit can be an invaluable tool. An IP audit is a systematic review of a company’s intellectual property assets and related processes. At Mathys & Squire, our audits aim to identify a company’s existing IP (including unregistered IP, such as confidential information and know-how), determine any risks or opportunities associated with it, and set out a recommended IP strategy, aligned with the business’ commercial objectives, to promote effective IP management and unlock value. For startups and SMEs, IP audits offer several key benefits:

1. Asset Identification and Protection: Startups and SMEs often create valuable IP without realising its full potential. Whilst “IP” is often thought of in terms of registered IP rights, such as patents and trade marks, this is by no means the full picture. An IP audit can help to identify all forms of IP — patents, trade marks, copyright, design rights, trade secrets, and more. By identifying these assets, businesses can take steps to better manage and protect them, leveraging their value and safeguarding their competitive edge.

2. Risk Management: Unprotected or poorly managed IP can expose companies to significant risks, including infringement claims and loss of proprietary information. An IP audit also aims identifies these vulnerabilities, enabling businesses to implement strategies to mitigate risks, such as securing patents or updating agreements with employees and third parties.

3. Enhancing Strategic Decision-Making: By providing a clear picture of a company’s IP landscape, an audit can inform strategic decisions to ensure that IP considerations are integrated into the company’s overall business strategy. Effectively protecting IP assets can give businesses a form of monopoly, providing the chance to enjoy a return on investment, increase competitiveness, and prevent competitors from financially benefitting from your R&D efforts. At Mathys & Squire, our audits aim to set out a costed IP strategy to manage your assets over time.

4. Unlocking Investment and Growth: Investors and potential partners view well-managed IP as a sign of a company’s long-term viability. An IP audit can strengthen a company’s position during fundraising or acquisition by demonstrating that the business has a clear understanding and control of its intellectual assets.

In conclusion, for startups and SMEs, an IP audit is not just a tool for protection but also a strategic asset. It enables companies to unlock the full potential of their intellectual property, ensuring that it is effectively leveraged, protected, and aligned with business objectives. Investing in an IP audit can provide a significant return by enhancing a company’s market position, revenue potential, and overall growth prospects.

For qualifying businesses, Innovate UK EDGE provides grants to access a part-funded IP audit in partnership with the Intellectual Property Office. More information about these grants can be found here.

For further information about pursuing an IP audit with Mathys & Squire, please reach out to a member of our Scaleup Quarter team.

Written by: Jessie Harrison