The value of IP

Businesses rightly take great care to protect their assets – from securing property insurance to promoting workplace safety. However, most businesses owners  ignore what is often their most valuable asset— IP.

Studies have found that up to 80% of a company’s value can be derived from its intangible assets but it is unusual for balance sheets to truly reflect how important they are to a business.

Whatever industry a business operates in it will have some form of valuable intellectual property. Whether a company or product name, a piece of technology or a design, these are key business assets with real commercial value. They can be bought, sold, licensed or used as security against loans.  They are the cornerstone of business value.

When looking to raise funds or exit a business investors or potential purchasers want to know that intellectual property has been identified and adequately protected. If not, value will be lost. It is therefore imperative for businesses to maximise the value of their intellectual property portfolio in order to keep ahead of the competition. IP insurance which meets the legal costs of taking or defending legal actions helps protect that value and bring peace of mind to business owners and investors.

We recommend you read our report on maximising the value of intellectual property for tips on how to make your intellectual property work for you.