Increasing Revenue through Identification, Valuation, and Protection of Intellectual Property and Critical Information (IPCI)
The value of Intellectual Property and Critical Information (IPCI)
By most calculations, seventy percent of the value of a modern company lies in it its IPCI, its intellectual property and critical information. Unfortunately, IPCI is an intangible. Some senior managers don't understand how something that is intangible can have real value. This lack of understanding is compounded by the fact that the PCAOB says that IPCI developed in-house has no book value, which many equate to having no economic value needing to be protected. They thus do not take appropriate measures to protect it, nor do they identify its value appropriately. Because of this IPCI is easily lost to competitive intelligence, economic espionage, inappropriate disclosure, and theft.
So what is the result of this? Substantial revenues booked as income by someone else. According to the 2002 Annual Report to Congress on Foreign Economic Collection and Industrial Espionage, U.S. businesses fail to take $300 billion in revenues each year because of competitive intelligence, economic espionage, inappropriate disclosure, and theft. According to a study by the American Society for Industrial Security (ASIS) with consultation from PricewaterhouseCoopers, the average discovered incident reduces revenues by $50 million in a manufacturing environment and $500,000 in a non-manufacturing environment. Our experience indicates that when we find one incident, we more often than not find another two. With the potential of up to 600,000 incidents each year in the United States, it is a near-certainty that your firm is a likely target, and highly probable that your firm will become a victim if they have not already done so.
By implementing an OPSEC program you can add substantial revenues to your income stream.
Failing to adequately protect your IPCI can put you into conflict with the SEC.
What the SEC says about IPCI and Sarbanes-Oxley
How we calculate potential increased revenues through implementation of OPSEC
If you have audit responsibility within your firm, and are therefore subject to personal liability under Sarbanes-Oxley for failure to implement an OPSEC program, you cannot afford to ignore the proper identification, valuation, and protection of intellectual property.
Contact LUBRINCO to help you gain a clear perspective on how your firm can benefit from proper identification and valuation of your intellectual property and critical information assets, as well as help you protect those assets from "unwanted attention."