In today’s fast-paced world, where the strength of your company is based on your Intellectual Property, it’s crucial that you have an IP protection strategy in place. Part of that, is performing IP due diligence.
IP Due Diligence
IP due diligence is a legal exercise where our skilled attorneys will define, examine and analyzes an IP portfolio of a target company, either offensively (to purchase or in-license) or defensively (to sell or out-license).
Due diligence is in place to reveal the value of any involved (patents, trade marks, copyrights and trade secrets) through the examination of the strength, scope and enforceability of the IP, the ownership rights surrounding the IP, and any future potential that could be derived from the IP.
Ideally, IP due diligence is conducted at the onset of the negotiations surrounding any potential transaction. Strategically timed due diligence provides a clearer and more accurate value of the IP, but also, corrective action can proactively be taken if and when any legal concerns are identified that may affect the value of the IP.
Your Own IP Assets
While IP due diligence is typically carried out by a prospective purchaser, it can also be carried out by a company – of its own assets – in preparation for a transaction, such as a business sale or a major licensing deal.
Therefore, it is important that you understand the following about your own IP:
- the quality and quantity of your IP assets so that you and third parties are able to put a value on them. You should be able to identify IP assets that are not utilized that could potentially run you an unnecessary cost;
- the processes you have in place to capture all the IP assets you create so that they can be adequately protected and used;
- the chain of title from which you derive ownership of the IP assets in order to ensure you have all the necessary rights to them; and
- whether any third party is, or is suspected to be, infringing your IP rights.
Other’s IP Assets
When entering into an acquisition or obtaining a license, it’s important that you ensure the following about the other company’s IP assets:
- you have “freedom to operate” in respect of present and future business activities. This will prevent wasting resources on an enterprise you may later be forced to stop as a result of infringing third party IP and in some cases in respect of which you could later have to pay significant damages; and
- that the party from which you are acquiring IP rights has established full entitlement to those IP rights.
Importance of IP Management
During the process of due diligence, as both a licensor or licensee, you should be able to ensure that you have good IP management practices in place. A structured approach to IP due diligence, like the kind we provide, will assist not only in maximizing the value of your IP assets, but also in ensuring transactions run as smoothly as possible.
Reilly Intellectual Property Law Firm
Understanding how intellectual property assets can best be protected is a key aspect of our business. Our experience attorneys are able to provide insight gained from our proven legal and technical expertise.
Reilly Intellectual Property Law Firm provides intellectual property services to protect the inventions that change and shape our world. We handle handles patents, trademarks, copyrights and licensing legal services in Denver. Our experienced attorneys provide strategic guidance, patent counseling and prosecution, new product clearance and licensing, as well as counsel regarding patent enforcement and how to avoid possible infringement issues.
Our patent attorneys actively and aggressively represent plaintiffs and defendants in a wide variety of proceedings before courts both domestically and internationally. We provide solutions that anticipate our client’s need to protect their intellectual property so that their business thrives. We would love to work with you to develop a dynamic strategy that addresses your patent, trademark, copyright, and licensing concerns.