Why Have an IP Audit?
Most entrepreneurs think an IP audit is a luxury—until they're midway through a sale and discover they've been using someone else's intellectual property without permission. By then, it's too late to fix quietly.
What an IP Audit Reveals
An IP audit uncovers hidden infringement exposure, unregistered assets, and valuation gaps. Specifically, you'll discover:
- Hidden infringements — whether you're using trademark, design, or copyright assets you don't have rights to
- Unregistered IP — valuable assets that could be formally protected
- Valuation gaps — missed revenue opportunities through licensing or extension
- Deal breakers — issues that could torpedo a sale, investment round, or franchise agreement
The earlier you discover a problem, the more options you have to solve it. There may be steps you can take to rebrand, license, or work around the issue. Even serious infringement issues have workarounds—but they require time and planning.
The Cost of Ignoring IP Risk: A Real Example
An IP audit should ideally be done right at the start of a business so it can avoid the pitfalls and problems that IP can pose.
The brothers who created Scrabulous filed a trademark application without first conducting an IP audit, or seeking trademark advice. They learned a lesson the hard way when their application caught the attention of Hasbro's legal team.
They were infringing on Hasbro's registered trademark. A simple audit would have flagged this immediately, giving them time to rebrand quietly, preserve their fan base, and keep their market advantage. Cost of a rebrand? Relatively low. Cost of a Hasbro lawsuit? Everything.
They were sued for trademark and copyright infringement, taken down from Facebook, and it took years to resume operations under a different name. Meanwhile, Zynga released Words with Friends and became the dominant player—all because a preventative IP audit would have cost a fraction of the loss they suffered.
When an IP Audit Makes Sense
Consider an IP audit if you're:
- Starting a new business — lock down IP rights from day one rather than discovering conflicts later
- Seeking investment — due diligence requirements now demand IP clarity
- Planning a sale in the next 2 years — time is your greatest asset in remedying problems
- Building new revenue streams — licensing, franchising, and international expansion all rely on clean IP ownership
Why IP Strategy Matters to Your Bottom Line
Here's the practical truth: most business owners don't know what they own or what they owe. An IP audit closes that gap. It tells you what your IP is worth, where you're exposed, and what steps move the needle on valuation.
Fixing your IP position is often less costly and complicated than you'd fear—but it does require time. For instance, securing international trademark rights can take 18–24 months. That's manageable when you plan ahead. It's impossible when you discover the problem during due diligence on a multi-million-pound deal.
Protecting your IP is one of the most important steps to ensure your business's success. That's why Azrights includes IP audits as a standard part of our trademark and brand support work. If you're investing in your brand, you shouldn't leave yourself exposed to hidden IP risk.
Funding Available
The IPO offers grants of up to £2,500 for IP audits for qualifying businesses, and we've successfully secured these grants for dozens of clients. The IPO also runs an IP Access funding scheme providing follow-on grants to implement audit recommendations—they've committed over £2 million since the pandemic.
However, I suspect the funds would only be obtainable by high growth potential businesses, such as those using AI or similar technologies.
Next Steps
If you're considering professional support for your trademark and brand IP—and you should, as your brand is often your most valuable IP asset—contact Azrights to discuss whether an IP audit is right for your business. We'll review your situation and outline what an audit would cover and cost.
