These ten questions address the key IP issues that need to be asked by any investor at acquisition and during the holding period of their portfolio companies:

1. What proportion of business value do IP and intangibles represent for your investment?

2. What is the business’s IP strategy and does it cover all IP assets, including patents, designs, trade marks, copyrights, know how/trade secrets and contractual IP? Is it written down and known throughout the business?

3. What is the business’s go-to-market strategy and could licensing play a part?

4. What is the patent strategy? Does the company engage in both offensive and defensive patenting?  Defensive publication? Does the company engage in both selling and buying patents to protect its position and monetise the portfolio?

5. What is the company’s patent filing rate per annum and how does this compare with market competitors and to comparable early stage companies? Can you benchmark the company on its IP practices?

6. How is the core know-how protected? Does the company have identifiable trade secrets and a know-how control policy? Does this extend into all areas of the business?

7. What does the company know about the patents and IP positions of its major competitors? Does the company engage in regular competitor watching and is an IP analysis done as part of product development?

8. What is the company’s policy and strategy with regard to IP ownership and licensing in its collaborations or licensing transactions?

9. Who is primarily responsible for managing the company’s IP, and against what key performance or other indicators is that person measured?

10. How is IP reported on to the board level? Does the CEO and company management have a good understanding of IP issues and their impact on the business?

This is part of a series of practical materials posted aimed at providing tools for venture capitalists and investors around intellectual property. ipVA provides IP strategy services and products that help businesses and investors better understand and manage IP. For more, see the rest of our site or get in contact.