IP AUDITS AND VALUATIONS

An IP audit is a systematic review of the intellectual property a South African business owns, uses, or is exposed to — patents, trade marks, designs, copyright, domain names, and know-how — checked against the registers held by the Companies and Intellectual Property Commission (CIPC) and against the company’s IP contracts. An IP valuation is the subsequent assignment of a monetary value to identified IP assets, typically for sale, licensing, M&A, raising capital, or financial reporting under IFRS. Burger Huyser Attorneys delivers both through its Intellectual Property practice, with the work led by specialist consultant Stefaans Gerber (Patent & Trademark Attorney) and supported by the firm’s commercial and contracts team, with engagements run from the Linden/Randburg head office and serviced across all Gauteng branches.

What an IP Audit Actually Covers in South Africa

An IP audit is a fact-finding exercise, not a valuation. The objective is to produce a verified picture of every IP asset the business holds, every IP right the business depends on, and every IP risk it is exposed to. In South Africa, that picture is built against the public registers held by the CIPC, and it normally falls into five components.

1. Asset identification — cataloguing every IP asset the business holds or uses: registered patents (Patents Act 57 of 1978), registered trade marks (Trade Marks Act 194 of 1993), registered designs (Designs Act 195 of 1993), copyright works (Copyright Act 98 of 1978), domain names, and unregistered know-how.
2. Ownership verification — confirming each registered right is in the company’s name at the CIPC, that assignments from founders, contractors, or prior employers have been properly recorded, and that no orphan or disputed rights sit on the register.
3. Contract review — checking IP clauses in employment contracts, contractor agreements, licensing arrangements, collaboration agreements, and any IP transfer or cession documentation for gaps. A common finding is a missing IP assignment clause from a former developer, which leaves the company exposed on ownership.
4. Risk and infringement exposure — flagging third-party rights the company may be infringing, freedom-to-operate risks in its product or branding, and any pending oppositions, cancellations, or revocation proceedings.
5. Remediation roadmap — a prioritised list of actions: filings to update, contracts to fix, rights to register, and disputes to manage.

The audit deliverable is usually an asset register with a remediation plan attached. It is the input a valuation needs in order to be reliable — a valuation done before a clean audit is built on an incomplete asset list.

What an IP Valuation Delivers

An IP valuation is an opinion of monetary value, prepared as of a stated valuation date and for a stated purpose (sale, licensing, transaction, or financial reporting). The output is a valuation report that records the assets valued, the methodology applied, the key assumptions, and the resulting figure. Three methodology families dominate:

• Income approach — the present value of the future economic benefits expected from the IP, often expressed as relief-from-royalty or discounted cash flow models. This is the most common method for established, income-generating IP such as trade marks in active use and patents on licensed technology.
• Market approach — reference to comparable licensing or transaction data for similar IP assets. Reliable only where the comparables are genuinely comparable; for niche or novel IP, the data is often too thin.
• Cost approach — the cost to replace or reproduce the IP, used mainly for early-stage or internally-developed IP where income and market evidence are weak.

For South African businesses reporting under IFRS, IP valuation intersects with IAS 38 Intangible Assets — the standard that governs when an intangible (including acquired IP) must be recognised on the balance sheet and how it is tested for impairment. Burger Huyser coordinates the legal audit side of the work and engages appropriately qualified valuation specialists where IFRS-grade reporting is required.

When an SA Business Actually Needs One

The triggers are predictable, and most fall into one of six categories.

Trigger	Why it matters
Sale, acquisition, or investment round	Buyers and investors want a clean IP picture and a defensible valuation before completing due diligence.
Licensing IP in or out	Both sides want to know what is being licensed, on what scope, and what it is worth.
Financial reporting	IFRS / IAS 38 requires intangible assets, including acquired IP, to be tested for impairment and recognised at fair value.
Periodic internal review	Typically every 2 to 3 years, or after any major commercial change (new product line, new jurisdiction, major hire).
Disputes on the horizon	Shareholder disputes, franchise disagreements, and divorce or separation matters often turn on the value of IP the business owns.
Unrecorded IP transfers	Contractor-developed IP without a written assignment is a common audit trigger and a frequent source of later disputes.

IP Audit vs IP Valuation: Two Separate Engagements

Conflating the two is one of the most common mistakes in IP advisory work. The distinction matters because each engagement delivers something different, and each can be commissioned on its own.

Engagement	Purpose	Typical deliverable	Typical trigger
IP audit	Identify, verify, risk-assess	Asset register + remediation plan	M&A, investment, periodic review
IP valuation	Assign monetary value	Valuation report with methodology	Sale, licence, financial reporting
Combined	Both	Audit register + valuation report	Pre-transaction diligence

An IP audit is a fact-finding exercise — what IP you have, who owns it, what contracts cover it, what the risks are. An IP valuation is an opinion of value — once you know what you have, what is it worth. They are often run together as a single engagement but can be commissioned separately, and a valuation done before a clean audit is unreliable because the underlying asset list is incomplete.

The South African Legal Layer

IP audits and valuations in South Africa sit against a national statutory framework. The substantive process is national — there is no provincial IP layer — and the public registers maintained by the CIPC are the single authoritative source against which audit findings are verified.

• Patents Act 57 of 1978 — governs the registration, scope, and infringement of patents in South Africa; administered through the CIPC.
• Trade Marks Act 194 of 1993 — governs the registration, protection, and infringement of trade marks; administered through the CIPC.
• Designs Act 195 of 1993 — covers both aesthetic and functional designs; administered through the CIPC.
• Copyright Act 98 of 1978 — protects works of authorship automatically on creation, without registration, but with formal evidentiary requirements.
• Counterfeit Goods Act 37 of 1997 — provides for the combating of counterfeit goods and goods to which false trade descriptions are applied.
• CIPC registers — the public record against which audit findings are verified, accessible via the CIPC IP Online portal.
• IP-related contractual framework — the common-law principles and statutory requirements governing IP transfer, including the rule that assignment of future IP requires a written agreement.
• IFRS / IAS 38 — the accounting standard that drives IP valuation work for financial-reporting purposes, particularly intangible-asset recognition and impairment testing.

For businesses whose IP matters sit alongside transactional or commercial work, Burger Huyser’s Commercial Law and Contracts practice (led by consultant J’Retha van Rensburg) handles the parallel non-IP legal layer so audit findings feed directly into shareholder agreements, IP assignment clauses, licensing terms, and dispute strategy without re-onboarding counsel.

What to Look for When Choosing an IP Audit and Valuation Attorney

IP work is regulated. Choosing the right firm comes down to whether the team is qualified to act, whether the work can be coordinated across IP and commercial practice, and whether the cost conversation is transparent from the first call.

• A registered patent and/or trade mark practitioner. South African IP law requires specific qualifications to prosecute patent and trade mark matters before the CIPC. Burger Huyser’s IP consultant, Stefaans Gerber, is a registered Patent and Trademark Attorney admitted to practise before the CIPC.
• Coordination across IP and commercial teams. IP audit findings need to feed into contract remediation, dispute strategy, and corporate transactions, so the audit team should sit alongside commercial counsel rather than handing off the file.
• Valuation methodology experience. IP valuation for financial reporting (IFRS / IAS 38) is a different skill set from IP prosecution. The firm should be able to either deliver or coordinate the valuation, not just the audit.
• Transactional context. If the audit is part of a sale or investment, the attorney should be familiar with M&A due diligence and how IP findings feed into warranties and disclosures.
• Transparent cost conversation. IP audit fees depend on portfolio size and complexity; a clear per-engagement quote after an initial scoping conversation is the standard to expect, not a loose pre-engagement estimate.

Burger Huyser’s IP work is led by specialist consultant Stefaans Gerber (Patent and Trademark Attorney), with the firm’s Commercial Law and Contracts team and general litigation practices sitting alongside it — which means the audit findings can move directly into licensing, assignment, and shareholder documentation without a separate onboarding step.

Practical Considerations: Cost, Timeline, What to Bring

Cost

Fees depend on the size of the IP portfolio, the number of jurisdictions covered, and whether a valuation report is required. Burger Huyser quotes on a per-engagement basis after an initial scoping conversation; the firm will give a transparent cost conversation up front rather than a loose pre-engagement estimate. The same principle applies to valuation work, where the fee scales with the methodology and the depth of evidence required.

Timeline

Scope	Typical duration
Focused IP audit — single-jurisdiction portfolio	2 to 6 weeks
Full audit across multiple jurisdictions plus valuation	8 to 12 weeks
Audit with CIPC record corrections required	Longer, depending on CIPC turnaround

What to bring to the first consultation

• A list of trade marks, patents, and designs the business believes it owns.
• Copies of all IP-related contracts — employment, contractor, licensing, assignment.
• Incorporation documents and shareholder agreements.
• The most recent annual financial statements if valuation is in scope.
• Details of any ongoing IP disputes.

Frequently Asked Questions

What is the difference between an IP audit and an IP valuation?

An IP audit identifies and verifies what IP the business owns, who owns it, what contracts cover it, and what the risks are. An IP valuation assigns a monetary value to the identified IP. An audit is fact-finding; a valuation is opinion of value. They are often run together but can be commissioned separately.

How much does an IP audit cost in South Africa?

Fees depend on the size and complexity of the IP portfolio — a small portfolio with a handful of trade marks and no patents is a different engagement from a multi-jurisdiction portfolio with patents, trade marks, designs, and licensing arrangements. Burger Huyser Attorneys quotes on a per-engagement basis after an initial scoping conversation at the head office (011 888 0246); the firm gives a transparent cost conversation up front rather than a loose pre-engagement estimate.

When should an SA business commission an IP audit?

The most common triggers are pre-transaction diligence (sale, acquisition, investment round), pre-licensing (licensing IP in or out), financial reporting under IFRS, periodic internal review (every 2 to 3 years), dispute preparation, and any time an unrecorded IP transfer is suspected.

Does Burger Huyser handle both IP audits and IP valuations?

Yes — the firm’s Intellectual Property practice covers both. IP audits are led by the firm’s specialist IP consultant, Stefaans Gerber (Patent and Trademark Attorney), with contract remediation and IP-related dispute work run through the firm’s Commercial Law and general litigation practices. Valuations are coordinated with appropriately qualified valuation specialists where IFRS-grade reporting is required.

Where is Burger Huyser’s IP team based, and who leads the practice?

The IP practice is run from the Linden/Randburg head office at 49 First Avenue, Linden, Randburg, 2194 (Tel 011 888 0246), with the work led by specialist consultant Stefaans Gerber (Patent and Trademark Attorney). The firm services Gauteng-wide IP work across all its branches.

Is a registered patent attorney required to perform an IP audit?

For an audit that touches patent or trade mark prosecution work — including verification of CIPC registrations, opposition or cancellation strategy, or licensing of registered IP — a registered Patent and Trademark Attorney is required. A generalist attorney can supervise a contractual IP review, but only a registered practitioner can give definitive advice on registered IP rights. Burger Huyser’s IP consultant, Stefaans Gerber, is a registered Patent and Trademark Attorney.

If you are considering an IP audit or IP valuation — for a transaction, financial reporting, or a periodic internal review — contact Burger Huyser Attorneys’ head office on 011 888 0246 (after-hours 061 516 6878) or visit 49 First Avenue, Linden, Randburg, 2194. The firm handles IP audits across patent, trade mark, design, and copyright portfolios, with the work led by specialist consultant Stefaans Gerber and coordinated with the firm’s Commercial Law and Contracts team where IP findings need to feed into licensing, assignment, or shareholder documentation. Burger Huyser Attorneys carries a 4.8/5 average across 250+ Google reviews (Trustindex verified “Top Rated Law Firm in South Africa”) and fields work from its Linden head office with full Gauteng coverage through branches in Sandton, Roodepoort, Bedfordview, Alberton, Pretoria, Centurion, and Midrand.