A company's intellectual property due diligence involves analyzing its intangible assets, checking whether valid IP rights exist and to what extent they are protected, analyzing the risks associated with them, and, in turn, assessing their value. As with portfolio analysis, our approach to IP due diligence is centered on understanding the business objectives of our clients and the nature of the transaction. Numerous deals have been performed by us as part of the IP diligence phase, including:
Acquisitions and mergers
Transfer of assets
Venture partnerships
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Licensing
Deals involving private equity
Partnerships in strategic alliances
It is important for buyers to carry out intellectual property due diligence in order to assess whether or not a target acquisition is worth the effort, and/or to determine how much the target company is worth. Due diligence on IP can benefit both the buyer and the seller. Perform due diligence on your own business to find any risks or issues you might have with your intellectual property. In this way, you will have enough time to make any amendments or prepare ahead of the due diligence by the buyer.
Reviewing a patent portfolio's due diligence objectives should include the following:
- A check of patent status should be done
- Ownership of patents must be confirmed
- The geographical scope of patent rights needs to be evaluated
- Assess a patent's scope of protection
- Defend patent rights by evaluating their validity
- Examine how valuable patent rights are in terms of enforcement
- Licenses to third parties to be evaluated
- Assess the alignment of the business strategy and patent strategy of the company.
- Analyze whether the patent portfolio can be improved or leveraged after the transaction.
- Assess whether any patent rights owned by third parties might interfere with the company's freedom to operate.