Ip audit ppt

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

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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
6

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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
7

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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
8

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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
9

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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
10

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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
11

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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
13

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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
14

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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
15

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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
16

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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
17

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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
18

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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
19

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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
20

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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
21

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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
22

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
Hyderabad - 500034.
Tel: +91 - 40 - 6050 6009
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
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)
23

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
Hyderabad - 500034.
Tel: +91 - 40 - 6050 6009
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
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)
24

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
Hyderabad - 500034.
Tel: +91 - 40 - 6050 6009
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
2)IPAUDIT2)IPAUDIT14jgls--tsabharinathan@jgu.edu.in
25

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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
26

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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”
27

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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
28

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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
29

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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
30

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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
31

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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
32

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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.
33

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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?
35

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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.
36

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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.
39

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
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
40

CHENNAI
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
Hyderabad - 500034.
Tel: +91 - 40 - 6050 6009
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
THANK YOU
Questions
44

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