A recent investigation conducted by the office of the California State Auditor has revealed that very few organizations have implemented prior recommendations and effectively protected their patents, trademarks, copyrights and trade secrets.

According to California Watch, regulators are proposing comprehensive legislative reforms that could simplify IP management and consequently inject crucial revenue into the state's struggling economy.

"[Continued inaction] could lead to loss of state control over some valuable intellectual property," CSA spokeswoman Margarita Fernandez told the news outlet.

Earlier this year, a bill introduced in the state assembly called for the establishment of a new intellectual property office within the Business, Transportation and Housing Agency's jurisdiction. According to California Watch, the legislation is on hold until January and may need to be introduced if consensus is not achieved in the next session.

Within the CSA report, several success stories were included to underscore the economic significance and potential of IP protection.

The Department of Transportation, for example, generated $51,500 in licensing fees from proprietary software. Additionally, the California Energy Commission earned $2.6 million in research royalties between fiscal years 2009 and 2011.