Auditing trademark portfolios: a step-by-step guide

Many companies estimate the health and relative worth of their IP portfolios based on size alone. However, those IP rights will be worth far less if the following checks and balances are not also considered.

STEP 1: Review your IP records and data for accuracy

The data in your IP portfolio needs to be accurate and up-to-date, otherwise you may find that you don't quite own the rights that you think you do. Taking the opportunity to cleanse, update and rationalise your IP data can save you both time and money in the long-run, as it will identify potentially costly errors in the records.

To identify and rectify common errors, consider the following key questions:

  • Exactly which entity is recorded as the owner?
  • What is the status?
  • Are the rights in force?
  • Are licences in force and recorded against any rights?
  • Are charges or other interests recorded against any rights?
  • Do the registered rights match those used in the business?
  • Are there any unregistered rights?

STEP 2: Audit your IP portfolio for value and efficiency

The next step is to assess the value of your portfolio against the costs involved in growing and maintaining the IP rights it contains. It helps to identify, for example, patent and trademark rights that are being renewed despite never being used, as well as gaps in protection, which might leave a company exposed.

This part of the audit should include:

  • Reviewing your IP strategy to ensure that it takes into account your strategic business goals;
  • Prioritising your IP rights (e.g. between ‘core’ and ‘non-core’), and markets (countries and goods/services) based on current branding/R&D strategy and future plans;
  • Auditing licensing and royalty agreements to ensure that the rights have been correctly maintained and the revenues received; and
  • Reviewing your supplier list to see if it is possible to generate further cost savings by consolidating your IP portfolio with one provider.

STEP 3: Put a timeline in place for regular health checks

Completing an IP audit is only the first step in what should be a regular programme of portfolio reviews. By conducting audits at regular intervals (ideally at least every six months), you can ensure that your portfolio continues to evolve as your business does. It could also identify additional savings in the future by:

  • Merging registrations;
  • Allowing possible duplicate (local) registrations to lapse;
  • Identifying unexploited rights that could be sold, licensed or allowed to lapse.

This last step will also be crucial in light of possible changes to trademarks, patents and designs in the EU in the future. For example, when the Unitary Patent and Unified Patent Court (UPC) is finally introduced and when Brexit occurs.

Latest insights

For more information, please contact us

Cookie policy

To provide the best possible experience for website visitors, Novagraaf uses cookies. By clicking “Accept’ or continuing using the site, you agree to our Privacy policy, including cookie policy.