Why some experts suggest that it may be prudent for the companies to conduct an intellectual audit to identify the protectable business information? What are the measures taken by Japan, Brazil, China and Israel for Inte

Intellectual Property (IP) Audit is a tool which is mostly used by the companies to take into account the intangible assets which they have generated / developed in the certain span of time. Thought the IP is intangible in nature, but it contributes to a very crucial core value of the company, i.e. the goodwill which they brand has in the market. Tentatively speaking the goodwill of the IP is one of the crucial reasons for which the industries acquire protection. This goodwill thus generated is then represented as the consumer preference and the acceptability of the brand in the market which is now a major reason for generating revenue. Through various embodiments the IP Audit affective provides an assessment over the following concerns: To identify the scope of the present and to create a future profile for the tangible assets of the company. To reinforce the IP protection mechanism and device secure portfolio to avoid legal conflicts. To identify the idle IP and to set them in process and to harness them as a potential. To assess the financial equivalent of the assets and to be able to use them as leverage or guarantee with other financial institutions. To foresee and steer clear of any risks or unwanted litigation which may evolve or affect the functioning and profile of the applicant in the market. To reduce unnecessary cost and legal expenses. Measure taken by Japan Effective June 15, 1991, Japan enacted a national trade secrets law. Trade secrets include any "technical or business information that has commercial value, is not in the public domain, and which has been "administered "as a trade secret. Infringement occurs when a person procures a trade secret, by theft, fraud, or extortion or when there is an unauthorized use or disclosure of a lawfully acquired trade secret for unfair competition. An injured party may obtain injunctive relief and damages. The trade secret holder may also request destruction of any articles that have been manufactured as a result of the illegally obtained trade secret. The statute has similarities to the Uniform Trade Secrets Act. For sample, there is a 3-year statute of limitations after discovery of the trade secret violation. There are no criminal penalties in the statute. Measure taken by Brazil In 1996, Brazil revamped its intellectual properly laws. Trade secrets are protected under the rubric of "unfair competition. "Borrowing from U.S. law, a variant of the Section 757 (6-Factor) test is used to determine whether a particular piece of information qualifies as a trade secret, Common knowledge, knowledge in the public domain, or knowledge that is apparent to an expert in the field cannot qualify for protection as trade secrets. The trade secret owner must take positive steps to safeguard the secrecy of the information. The full panoply of relief is available--compensatory damages, punitive damages and injunctions. There are also criminal sanctions available against anyone who releases, exploits, or uses without authorization a trade secret to which he or she had access by virtue of a contractual or employment relationship. Measure taken by China The Law of the People's Republic of China (PRC) against Unfair Competition (Unfair Competition Law) was promulgated by the State Council in September 1993 and became effective on December 1, 1993. This is China's first trade secret law. The term "trade secrets" is defined as technical and management information that is unknown to the public, can bring economic benefits, is of practical value, and for which the rightful party has adopted measures to maintain its confidentiality. Article 10 of The Unfair Competition Law prohibits business operations from engaging in certain acts and the law also provides for the remedies in case of infringement of trade secrets. Measure taken by Israel Israel has a criminal statute (Penal Law 1977 Section 496) prohibiting the disclosure of trade secrets by an employee. Employee contracts enjoin employees from using trade secrets and industrial know-how. There is an implied obligation of confidentiality between employers and employees.