Digital assets are often overlooked during the inventory phase of creating business succession plans and personal estate plans. Many digital assets can be quite valuable and need to be properly identified and protected. Digital assets may include customer lists, intellectual property, social media accounts and creative products. It may also include apps, workflows and photos/videos.
The key difference between a digital asset and a physical asset is that physical assets are tangible and digital assets are not. While intangible they still hold value and are fully owned and controlled by the creator/owner. Some may be stored on your business’ servers or in the cloud. Some of the most common types of digital assets include:
Content
Your company’s website, domain name, articles on the website, and photos/videos.
Social Media
Your company’s social media presence including all accounts, posts and content within posts.
Apps
Whether internal or consumer-facing company apps may be deemed a valuable digital asset.
Proprietary Processes
Often overlooked, but unique workflows, internal systems and content management protocols may be valuable digital assets as well.
Intellectual Property
Any intellectual property held by your company qualifies as a digital asset. This may be company logos, copyrighted material, trademarks and patents.
Digital assets add to the net value of your business. They can be sold independently and are just as important as physical assets; therefore, they need to be protected.
First, make a detailed inventory of all of your digital assets. Then attribute the correct ownership information to each asset. Create a baseline valuation of the assets while noting that the values will fluctuate over time.
Employ data security best practices including password protection and authentication. Make note of who has access to each asset. Keep up-to-date and accurate records to prevent theft and loss.
Protect your digital assets through the use of protective agreements when third parties need access. This may include non-disclosure agreements (NDAs) to protect confidential information. Use intellectual property attorneys to properly register any IP so that ownership can be proven and preserved.
Make sure your IT department has back up plans in place and the company uses secure Wi-fi and other connectivity procedures. Invest in cybersecurity to protect your company and its digital assets from hackers and other online issues. Also consider purchasing a cyber insurance policy to protect your business from internet-based risks.
Finally, make sure these assets are properly inventoried and listed in your legal documents. This includes your business succession plan, partnership agreements and personal estate plans of all owners. For more information on protecting digital assets in your legal documents, contact the experienced attorneys at Stouffer Legal in the Greater Baltimore area. You can schedule an appointment by calling us at (443) 470-3599 or emailing us at office@stoufferlegal.com.
