Intangible business assets currently account for 70 to 85 per cent of the total value of business assets. With such significant value, does your business have a strategy to protect and enhance its intangible assets? If not, and you don't know where to start, here are a few tips and suggestions:

  1. Write down an intellectual property (IP) strategy, even if it is a few bullet points on a single page. This would include strategies around things such as brand, information (including personal and confidential information) and developments. Ideally, any material intangible asset in your organization should be covered by the strategy.
  2. Align your IP strategy with your business plan and your business processes. It is amazing how often they don't line up. A key part of this alignment is getting senior level buy-in.
  3. Inventory the types of intangible assets you have (e.g., existing and proposed products, brands, customer lists, processes and software). You'll be surprised at what you find.
  4. When you acquire intangible assets, make sure that you (a) get enough rights to use the assets, even if your business model changes (e.g., privacy consents, scope of use and affiliates); and (b) don't take on more risks than you intend to.
  5. Communicate your IP strategy to your people. Not once, but on a regular basis. You need to create a culture where intangible assets are valued. Training is often more valuable than the words in the policy.
  6. Develop processes to 'capture' intangible assets arising from your business. Don't let those assets drift out your door.
  7. Avoid 'jointly' holding intangible assets with someone else, when possible. Otherwise, you will probably get more trouble than you bargained for.
  8. Think carefully about your business processes, physical security and other mundane things (e.g., what happens to old computers in your organization?). Don't just focus on the legal side.
  9. Get written IP assignments from your employees and contractors. You may be surprised at what they can own if you don't.
  10. If you can't do it all internally, get help. There is too much at stake to simply give up or ignore it.
  11. Don't forget that significant portions of the intangible value are tied to people. Are you capturing knowledge and information from your staff? Do you have plans in place to keep key people? What happens if key people leave?
  12. Watch out for 'open source' software. Nothing in this world comes free.
  13. Don't assume the rest of the world works the way Canada does. Even our neighbour to the south has some different rules surrounding intangible assets.
  14. Avoid restrictive provisions in agreements (e.g., noncompetes, restrictive covenants and confidentiality provisions). If you do sign an agreement that includes a restriction, keep track of it (e.g., keep a list).
  15. Avoid vague or unclear language in agreements involving intangible assets. If it is not crystal clear to you when you sign the agreement, it probably will not get any better with age.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.