Question

Consider the steps involved with performing an intellectual property (IP) audit. Discuss why new products and software applications need to pass an IP audit before they are launched. Why do you believe investors and venture capitalist insist on an IP audit before they invest?

Answer 1

Answer)
The intellectual property (IP) audit is the review of the organization's IP assets and also the related risks and opportunities. The intellectual property (IP) audit is used to assess, preserve, correct the defects in the IP, enhance the use of the IP and even putting the IP to use. Thus the intellectual property (IP) audit is used to review the company assets and also the IP agreements, procedure and the policies which are made by the organization.
Even new products and software applications are needed to pass the IP audit so that there can be assurances that there are no IP related risks in the use of the software or product. Also, the use of the IP rights should be reserved for the organization's existing IP rights and thus can be used for the research and development of the software.
Also, we know that the investors and venture capitalist insist on having the IP audits before they invest their money on the software or product. This is because the IP audit identifies the current software IP usage and also the IP related risks if any. The IP audits reveal the roadblock and also prevent the disputes in the IP in the future which can be costly to the company. The business transactions and the activities are thus optimized as a result of the IP audit. Also, there are several other things which can be discovered such as defects in the existing products, risky employee agreements, trademark identities which were violated, product configuration which are not protected by the patents, and other patent issues, etc.