Increasing Revenue through Identification, Valuation, and Protection of Intellectual Property and Critical Information (IPCI)
The value of Intellectual Property and Critical Information (IPCI)
By most calculations, seventy percent of the value of a modern company lies in it its IPCI, its intellectual property and critical information. Unfortunately, IPCI is an intangible. Some senior managers don’t understand how something that is intangible can have real value. This lack of understanding is compounded by the fact that the PCAOB says that IPCI developed in-house has no book value, which many equate to having no economic value needing to be protected. They thus do not take appropriate measures to protect it, nor do they identify its value appropriately. Because of this IPCI is easily lost to competitive intelligence, economic espionage, inappropriate disclosure, and theft.
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By implementing an OPSEC program you can add substantial revenues to your income stream.
Failing to adequately protect your IPCI can put you into conflict with the SEC.
If you have audit responsibility within your firm, and are therefore subject to personal liability under Sarbanes-Oxley for failure to implement an OPSEC program, you cannot afford to ignore the proper identification, valuation, and protection of intellectual property.
A client was buying a small technology company whose assets were all Intangible Property. Looking at how the assets and knowledge were treated it was clear much of the IP had leaked and departed to competitors of the target. A choice had to be made to pass on the acquisition or to invest in the process of re-establishing the exclusive us of the IP it had created.