Conducting a Year-End IP Audit

As the calendar winds down, most businesses are focused on closing the books and planning for the next fiscal year. But one often-overlooked task can yield some of the best strategic value—an intellectual property (IP) audit.

Whether your company builds software, manufactures components for jet engines, or delivers professional services, your IP is likely one of your most valuable assets. A year-end audit ensures that these assets are properly aligned with your busines goals heading into the new year.

Why an IP Audit Matters

For small and medium-sized businesses, IP can represent a significant portion of enterprise value—even if it isn’t reflected on the balance sheet. A structured review can help you:

• Confirm ownership of trademarks, copyrights, patents, and trade secrets

• Identify unprotected or under-protected assets (such as unregistered marks or outdated NDAs)

• Spot potential infringements by others—or your own inadvertent exposure

• Align IP protection with your evolving business strategy and product roadmap

• Prepare for investor due diligence, licensing deals, or exit events

Step 1: Inventory What You Have

Start by creating a current inventory of your company’s worldwide IP:

• Trademarks: Product names, logos, slogans, or packaging designs used in commerce. Note registration numbers, filing dates, and renewal deadlines.

• Patents and Trade Secrets: Review all filed, pending, or issued patents, as well as proprietary processes or algorithms that should remain confidential.

• Copyrights: Software code, marketing materials, manuals, photos, and website content.

• Domain Names and Social Media: Confirm that key online assets are registered in the company’s name, not an employee’s or contractor’s.

Step 2: Confirm Ownership and Agreements

Ownership gaps are common—especially when contractors, freelancers, or joint developers are involved. Ensure that:

• All employees and vendors have signed IP assignment agreements transferring ownership to the company.

• Collaboration or joint-development projects are governed by clear written terms.

• Licenses, NDAs, and technology agreements are current and enforceable.

  
  

Step 3: Evaluate Protection and Renewal Status

Use your audit to check that your protections are up to date:

• Trademark renewals and declarations of use (such as the USPTO’s Section 8 or 9 filings) are calendared.

• Patent maintenance fees are paid.

• Copyright registrations are complete for key works, since registration is required to enforce rights in U.S. courts.

Step 4: Assess Business Alignment

Your IP portfolio should track your company’s direction. Ask:

• Have new product lines launched that need trademark filings or updated brand protection?

• Are old marks or patents no longer used and eligible for pruning?

• Should new inventions, designs, or software be documented for patent or trade-secret protection?

  
  

Step 5: Document and Plan Ahead

Summarize your findings in a short internal report that includes:

• An updated IP asset list

• Deadlines and maintenance calendar

• Action items for new filings, renewals, or agreement updates

• A risk list noting any unprotected assets or infringement concerns

An annual IP audit is not just housekeeping—it’s a strategic exercise that helps protect your competitive edge. By dedicating time before year-end, small and medium-sized businesses can start the new year with confidence that their most valuable assets are secure, enforceable, and aligned with future growth.