IP Audit & Due Diligence FAQ

• What if the audit reveals that we are inadvertently infringing on someone else’s IP? 

This is a critical “Freedom to Operate” risk. If an audit uncovers potential infringement, we can help you proactively manage it, by seeking a license, designing around the issue or challenging the validity of the other party’s right, before it turns into a costly lawsuit. 

• Why is IP Due Diligence critical for M&A and investments?  

Investors need to verify that the technology they are buying is not just “innovative” but legally owned and enforceable. Due diligence uncovers “deal-killers” such as expired patents, ownership disputes or pending litigation that financial audits often miss. 

• Can you determine the monetary value of my IP?  

Yes. We provide IP Valuation support to assess the financial worth of your brands, patents and technologies. This is essential for determining a fair price during mergers, joint ventures or when using IP as collateral for bank financing . 

• What are “ownership gaps” and how do they happen?  

An ownership gap occurs when a company uses an asset but doesn’t legally own it, often because a founder, employee or external vendor didn’t sign a written assignment. We identify these gaps and draft the necessary “Confirmatory Assignments” to secure your title. 

• Does an audit cover my IP assets outside of Malaysia?  

Yes. Since IP rights are territorial, we review your protection status in all key markets. We work with our network of foreign associates to ensure your global portfolio is valid, renewed and aligned with your export strategy. 

• Can an audit help me reduce my legal costs?  

Absolutely. Many companies pay renewal fees for “dead” assets (e.g., brands they no longer use). An audit helps you “prune” your portfolio, letting go of obsolete rights to save money while focusing your budget on high-value assets. 

• What if an employee claims they own the patent or code they wrote?  

This is a common dispute. If an audit reveals that an employee retained ownership due to a weak employment contract, we advise on the legal remedies to transfer those rights to the company and prevent the employee from taking the IP to a competitor. 

• Do I need an audit if I only have Trade Secrets (and no patents)?  

Yes. Trade secrets (like client lists or recipes) are only protected if you take “reasonable steps” to keep them secret. An audit verifies if your NDAs, IT security and internal access policies are legally sufficient to claim protection in court . 

• Can an audit help me generate new revenue? 

Yes. An audit often uncovers underutilised assets that can be monetised. Once identified, we can help you structure licensing or franchising deals to turn these dormant assets into active revenue streams . 

• How often should I conduct an IP audit?  

We recommend an audit whenever your business direction changes (e.g., launching a new product line), before a funding round or every 2-3 years. This ensures your legal protection evolves in step with your business growth and market changes.

This article is written by 

Azarith Sofia Binti Aziz
Principal Associate, Low & Partners