Global organisations are largely failing to understand the intellectual property (IP) risks facing their firms and the value of their intangible assets, according to a global report published today by Marsh and Liberty International Underwriters (LIU).
In the 2011 Intellectual Property Survey Report, three-quarters of respondents were unable to quantify the proportion of their firms’ values that could be attributed to intangible assets or goodwill. This is despite nearly 70 percent of firms identifying IP protection as a crucial incentive to innovation within their firms.
In addition, the majority of firms said that IP was not specifically included in their risk management programs and only 21 percent of respondents purchased insurance to cover their trademark exposures, with even fewer purchasing insurance coverage for copyright, design right, patent, and trade secret risks.
“Intellectual property is often the critical asset for firms to protect. Our survey shows there is a real need for organizations to take a more proactive risk management approach to the protection of vital assets,” says Fredrik Motzfeldt, Communications, Media and Technology Leader at Marsh.
Matthew Hogg, Vice President, Strategic Assets, Liberty International Underwriters, adds: “Failure to provide adequate protection for IP has the potential to threaten an organisation’s survival. This could impact global competitiveness.”
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