Summary
The post examines why many knowledge-driven companies in India delay acting on their intellectual property and how systematic IP mining or audits can significantly increase IP filings. It uses real-world examples from multinationals, manufacturing companies, research institutions, and SMEs to show varied outcomes of IP audit exercises. The analysis concludes that while uncovering intellectual assets is not a difficult task, maximizing their value depends on quality, policy, and strategy. The author highlights that an organised approach to IP filings need not be daunting, but realizing business value from IP may require greater effort.
The Challenge of Unrealised Intellectual Property
A significant number of knowledge-driven companies hold intellectual assets that are never recognised or protected. Some fail to identify valuable IP within their organisations; others are indifferent to it; and still others are unsure how to proceed when they encounter it. Even organisations that are well-versed in IP management can fall into one of these categories. When a company eventually decides to increase its IP revenue, IP filing itself rarely proves to be the principal obstacle. The more immediate challenge is to locate and surface the IP that already exists within the organisation.
IP Mining and Audit as a Starting Point
Organising an IP mining or audit exercise is one of the most practical ways to initiate or increase IP filings. A number of business-driven organisations, research institutions, and educational institutions have undertaken IP mining and audit exercises with the objective of identifying their intellectual assets and taking them forward for protection. While the outcomes vary depending on the nature of the organisation, the technology field, and the organisation’s business objectives, one result tends to be consistent: the exercise surfaces unprotected, valuable IP that the organisation did not know it possessed.
Case Studies
An MNC operating in the Heating, Ventilation, and Air Conditioning sector undertook an IP audit with the primary objective of identifying potential software patents at its research and development centre in India. The exercise uncovered more than two hundred inventions, of which more than fifty were taken forward for patent filing. The company, which was already experienced in managing its patent portfolio, regarded the audit as a means of strengthening its existing position.
In contrast, an Indian electronics manufacturing company initiated an IP mining exercise after its potential investors requested an assessment of the company’s intellectual assets before committing to an investment. The exercise uncovered more than eighty inventions; however, none were taken forward for filing, which led to the breakdown of the investor discussions and the failure of the company’s filing strategy.
A premier educational and research institution conducted an IP mining exercise that uncovered more than forty inventions, but resulted in very few filings. This prompted a re-evaluation of the institution’s approach and a revision of its filing strategy. In contrast, IP audits conducted at several small and medium enterprises produced more consistent results: more than forty intellectual assets were uncovered across ten such organisations, and all of them proceeded with filings.
A Consistent Finding
Among the one hundred and seven (107) IP mining and audit exercises reviewed, one inference consistently emerged: IP mining and audit is an effective tool for uncovering intellectual assets and can make a substantial contribution to an organisation’s IP filing objectives.
That said, IP filing is only the starting point. Whether an organisation’s IP will ultimately add value to the business depends on the quality of the IP secured, the IP policies and systems in place, the business objectives, and a range of other factors, including market conditions. Increasing filings through an IP audit exercise requires relatively modest effort; extracting maximum value from those filings is a more demanding undertaking.
Disclaimer: This article is for general information and does not constitute legal advice. Readers should consult a qualified attorney before acting on any matter discussed here.