Aanoor Legal

IP Due Diligence

We at Aanoor with the help of Legal experts will assess the quantity and the quality of intellectual property assets owned or licensed by the company. IP due diligence audit includes an assessment of how intellectual property is captured and protected by the relevant company or business. Due diligence is essential for evaluating all potential merger or acquisition; Our IP due diligence is tailored to meet the particular business situation. It provides vital information specific to future benefits, economic life and ownership rights and the limitations of the assets all of which affect its final value.

Benefits of IP due diligence:

  • Helps to understand the quality and quantity of the intellectual property assets such that it can be valued and compared with the third parties.
  • The processes in place that captures intellectual property assets can be protected and used.
  • Helps to maintain clear and ambiguous records of intellectual property assets which play as significant evidence, if the time comes to sell your business.
  • There would not be any scope of infringement for intellectual property rights by the third party.
  • Helps to maintain records of intellectual property assets which play as significant evidence, if the time comes to sell your business.

The process involved in conducting IP due diligence:

Every business will have a different set of requirements for conducting the IP due diligence. Some of the general requirements that involve the IP diligence are:

Identifying the intellectual property assets: All the intangible assets are identified like the patents, trademark and domain names.

Verifying the ownership of the asset: With the help of the checklist, ownership is investigated with a series of questions and if the seller doesn't own the asset then the evaluation will be done to check if proper steps were taken to obtain the rights from the actual owner.

Terms and conditions of the IP asset: The validity of the IP assets need to be checked and the territory to verify if it is limited to a certain territory. Local IP law for each territory needs to be verified to check the validity term of different IP assets.

Third party claims or interests with respect to sellers IP asset: All the license and franchise agreements, memorandum of understanding and joint venture agreements have to be verified.

Evaluation of the potential IP infringement: The Auditor will check whether the investor could use, sell or make the IP assets without infringing other party rights.

To comply with the above requirements, the below steps are followed while conducting IP due diligence audit:

  • Preparation of IP due diligence checklist.
  • Segregation of IP assets.
  • A thorough check of the ownership.
  • Verification of facts and figures.
  • Analyze all the protectable and protected IP rights.
  • Final diligence report along with the strategies.
  • Documentation of IP agreements.