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Intellectual Property Due Diligence for Investors
Intellectual Property (IP) due diligence review is a critical examination conducted to assess the quantity, quality, and robustness of the IP assets held by a company. Our IP review is typically conducted when considering investments, mergers, acquisitions, or partnerships involving the company, as it provides a comprehensive insight into the legal and commercial status of the company’s intellectual property.
Deliverables
Specifications and Deliverables
The deliverable will be a report covering the following aspect:
1. Assessing Value and Risks: The report will enable determining the intrinsic value of a company’s intellectual property assets. It is intended to provide investors and acquirers with a clearer picture of the potential benefits and risks associated with these IP assets and enable better-informed decision-making about the company.
2. Identifying Strengths and Weaknesses: The report also identifies strengths and weaknesses within the company’s IP portfolio. This includes understanding which intellectual property has already been patented, which are pending patents, and the areas of potential vulnerabilities (e.g., expired patents or inadequately protected innovations). It also assesses the adequacy of the protection measures for proprietary information and trade secrets. The report can also highlight any threats from adversely held intellectual property by carrying out a freedom-to-operate study.
3. Legal Compliance: Due diligence ensures that the IP assets are legally compliant with relevant laws and regulations. This involves verifying that the company has rightful ownership or valid licensing agreements for the use of the IP, ensuring there are no current or potential legal disputes, and confirming compliance with international IP laws if applicable.
4. Strategic Fit and Synergies: For a company looking to merge with or acquire another entity, IP due diligence helps evaluate how well the target company's IP aligns with its own strategic goals. It explores potential synergies and integration issues, assessing how the IP can be leveraged to enhance competitive advantage and create value.
5. Planning and Future Use: The process provides a roadmap for the future use and development of IP assets. It helps in identifying opportunities for new product development, market expansion, and potential areas where the company can strengthen its IP to support future growth and innovation.
1. Assessing Value and Risks: The report will enable determining the intrinsic value of a company’s intellectual property assets. It is intended to provide investors and acquirers with a clearer picture of the potential benefits and risks associated with these IP assets and enable better-informed decision-making about the company.
2. Identifying Strengths and Weaknesses: The report also identifies strengths and weaknesses within the company’s IP portfolio. This includes understanding which intellectual property has already been patented, which are pending patents, and the areas of potential vulnerabilities (e.g., expired patents or inadequately protected innovations). It also assesses the adequacy of the protection measures for proprietary information and trade secrets. The report can also highlight any threats from adversely held intellectual property by carrying out a freedom-to-operate study.
3. Legal Compliance: Due diligence ensures that the IP assets are legally compliant with relevant laws and regulations. This involves verifying that the company has rightful ownership or valid licensing agreements for the use of the IP, ensuring there are no current or potential legal disputes, and confirming compliance with international IP laws if applicable.
4. Strategic Fit and Synergies: For a company looking to merge with or acquire another entity, IP due diligence helps evaluate how well the target company's IP aligns with its own strategic goals. It explores potential synergies and integration issues, assessing how the IP can be leveraged to enhance competitive advantage and create value.
5. Planning and Future Use: The process provides a roadmap for the future use and development of IP assets. It helps in identifying opportunities for new product development, market expansion, and potential areas where the company can strengthen its IP to support future growth and innovation.
Value Proposition
Experience has shown that investments can often be seriously delay or even fail due to issues and concerns over protection of intellectual property and the risks of infringing the IP of a third party. The IP due diligence review is a de-risking exercise for companies to make them investor ready for scale-up.
