Why conduct an IP audit – Lessons from AutoZone – Sweeny Legal

SweenyLegal-ReversedWe’re in an object-oriented, outsourced, and open-sourced world, and organisations are anxious to take steps to ensure that the software they build and sell is created within a responsible policy framework for use and protection of intellectual property.

•“Audit” is often viewed as a dirty word.
•But it doesn’t have to be, especially when it means ensuring your IT infrastructure is efficient, cost-effective and compliant.
•The due diligence process associated with mergers & acquisitions, joint ventures, portfolio assessments, spin-offs, strategic alliances, and OEM procurements are now including an increased level of sophistication regarding intellectual property.
•Identifying the origins and value of intellectual property and assuring compliance with obligations relating to licensed assets has become a due diligence checklist item.
•With source code becoming increasingly available – for free – diligence teams today increasingly need to understand the pedigree of target software intellectual property.
•Infringement risks are not always simply in the form of damages to copyright holders or from liability to customers for breach of warranty.
•For publicly traded companies, there are perhaps even larger consequences from negative customer perception and financial market effects. For instance, the day after SCO filed suit against AutoZone for copyright infringement, shares of AutoZone dropped 5 percent on four times the prior day volume.
Ignoring the merits of the complaint, this alone represented an approximate $300 million loss of market capitalisation for AutoZone. (WIPO IP Infringement Data)
If you would like to more about what an IP Audit can do for your company, call me at Sweeny Legal

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  • Sweeny Legal announces its Virtual Lawyer Service Available in WollongongTomorrow’s Lawyer Today. This Service saves you time , it is convenient, and saves on costs. Alternatively I can come and visit your Office and review your needs.

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Filed under Intellectual Property Law, IP Audits

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