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IP Audit & Assessment

Why do investors require an IP Audit?

Investors want to ensure that the technology or brand they are funding is legally owned by the company and secure from competitors. An IP audit reveals "skeletons in the closet," such as missing copyright assignments from developers or potential trademark infringements, which could devalue their investment.

Does an IP Audit protect me from lawsuits?

An audit itself is a diagnostic tool, not a shield. However, it identifies legal vulnerabilities (e.g., using unlicensed images) so you can fix them proactively. By addressing the issues found during the audit, you significantly reduce the risk of future lawsuits and strengthen your defense position.

Can IP valuation help in obtaining a bank loan?

Yes, intangible assets like trademarks and patents can be used as collateral for loans in Georgia, provided they are properly valued and registered. A professional valuation report certified by an expert increases the bank's confidence in the liquidity of your IP assets.

What is "Chain of Title" and why is it important?

Chain of Title is the historical record of ownership transfer. For example, if a freelancer wrote code for your app, the chain of title must show a written agreement transferring rights from the freelancer to you. If this link is missing, you don't fully own your product, which is a major red flag for buyers.

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IP Audit & Assessment is a fundamental procedure for any company wishing to understand the true value and risks of its intangible assets. Businesses often possess valuable assets—trademarks, copyrights, know-how, databases—that they are not fully aware of or haven't properly documented. The audit aims to uncover this "hidden" capital, verify the chain of title, and detect legal gaps. This service is critical before attracting investment, during reorganization, or simply for improving internal management. A qualified audit answers questions like: What do we have? Who owns it? Is it protected? What is it worth? This process reduces the risk of future disputes and increases company capitalization.

What Does IP Audit & Assessment Service Cover?

Experts conduct a detailed diagnostic of the company:

  • Asset Inventory: Identifying and cataloging all potential IP objects (logos, slogans, software code, designs, client databases).
  • Rights Verification: Analyzing whether rights have been transferred from employees and contractors to the company (Work for Hire agreements).
  • Registration Status: Checking the validity, deadlines, and territorial coverage of trademarks and patents.
  • Risk Analysis: Identifying potential infringements (e.g., is the company using licensed assets beyond the allowed scope?).
  • Trade Secret Audit: Assessing the effectiveness of confidentiality measures (NDAs, secured servers).
  • Valuation: Determining the market value of intangible assets for financial reporting or transactions.

Real-World Scenarios Where You Need This Service

IP audit is essential at key stages of business development:

  • Attracting Investment: Investors demand assurance that the company's technology and brand truly belong to the company and not to the founder personally.
  • Mergers and Acquisitions (M&A): Buying or selling a company. You need to know exactly what you are paying for and what risks come with the purchase.
  • New Product Launch: Before entering the market, you want to ensure your new product name or design doesn't infringe on others' rights (Freedom to Operate).
  • Bankruptcy or Liquidation: Valuing assets to satisfy creditors.
  • Licensing: You intend to franchise and need to organize your IP portfolio.

Georgian Legal Framework and Regulations

The audit process relies on Georgian intellectual property legislation: the Patent Law, the Law on Trademarks, and the Law on Copyright and Related Rights. Special attention is paid to employment and service contracts under the Civil Code, as this is where rights are often lost (when a client assumes they own the rights, but the law assigns them to the author). In the valuation part, International Valuation Standards (IVS) and financial reporting standards are used.

Service Process Step-by-Step

An audit is a structured process:

  1. Information Gathering: Filling out questionnaires, mobilizing documentation (contracts, certificates).
  2. Interviews: Talking to management and technical staff (CTO, marketers) to identify assets.
  3. Legal Analysis: Detailed study of documents and comparison with public registry data.
  4. Gap Identification: Spotting "Red Flags" — for example, an unsigned assignment deed.
  5. Report and Recommendations: A final document outlining discovered issues and a remediation plan.

Why Choose Legal.ge?

Legal.ge gives you access to lawyers with business acumen. An IP audit is not just a legal check; it is a strategic business tool. Experts on our platform will help you turn your intellectual property into real, measurable capital and avoid costly mistakes.

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