Best management practices of intellectual property at workplace

Most locally generated patents are owned by universities and research institutions. Many businesses own trademarks and other forms of intellectual property (IP). The type of intellectual property owned can be determined by the nature of business.

IP is defined in the Constitution as property and granted exclusive rights. There is therefore monetary value to any IP you own.

There are experts who specialise in valuing IP, hence it is prudent to value your IP. This is particularly important if you desire to implement an IP strategy.

If you want to license or sell your IP, at how much would you value royalties or the sale price?

It would be difficult to determine this without conducting an IP valuation. Several methods are used in valuing IP. The cost-based approach assumes that the value for your IP is equal to the cost incurred in generating it.

For copyright, such as music, the value would include the cost of song writers, instrumentalists ,recording and the music video.

The market-based approach assumes that the value of IP is based on a similar product in the market.

This method does not work very well for IP as there is rarely available comparable products in the market as IP is all about innovation and novelty.

The discounted cash flow valuation method is the most desirable. It states that the true value of IP is the net value of expected future earnings.

For example, a medicinal patent’s value would be equal to projected sales. The valuation mentioned above is just one aspect of best management practices in IP.

Today I want to highlight best management practices of IP in workplace settings.

Best practice here refers to a superior method of managing IP for maximum benefit.

IP has stakeholders other than the owner and therefore a good practice is to manage stakeholder interfaces well.

When it comes to employees, it is prudent to have systems and procedures in place to manage IP.

For example, when an employee creates IP it can either belong to him, the employer or be jointly owned.

This is why it is essential to have policy at work as the best practice of managing IP. The policy cannot deviate from statutory law hence in formulating one, one must look at local law and applicable treaties.

It is inaccurate to adopt online template policies as laws differ according to jurisdictions. IP policies are a good way to have internal regulations where there is no governing local law on the same.

You should have clear procedures on usage of IP to ensure preservation and protection.

For example, who is the authorised staff to deal with IP? In terms of software, who has authority to handle source codes, passwords and trade secrets?

In the case of physical IP such as machinery, how should it be maintained and stored?

Good IP management practices are as important as any best practices in property management.

Mputhia is the founder of C Mputhia Advocates. [email protected]. www.cmputhiadvocates.co.ke