As companies search for ways to control costs and eliminate wasteful spending, Smart Business Online warns managers that dismissing the importance of intellectual property and reducing its share of the overall budget may prove to be a costly misstep.

IP can be leveraged to drive innovation or keep competitors at bay, and like any other strategic business asset, it should be a top priority when it comes time to draw up the company's annual budget.

"The overriding factor to keep in mind is that your intellectual property budget should not be considered overhead," attorney Steven Haas told the news source. "It should be considered part of your overall strategic plan, generating assets for the company."

According to Haas, there may be no set practice for determining exact percentages, but it may be wise to consult third-party counsel to value intellectual assets and determine what needs the most protection. Also, eliminating portions of one's patent portfolio that are no longer relevant to company offerings can help avoid wasteful maintenance costs.

As IP Watchdog contributor Beth Hutchens recently reminded readers, businesses cannot afford to let the documentation and processes associated with IP discourage thoughtful portfolio management. Intellectual assets demand the full attention of management, and most notably, budget directors.