When companies merge or acquire other companies, a lot of research has to go into any deals that get made. It can be especially important to do your due diligence when it comes to intellectual property. Knowing exactly what you are getting when you make an acquisition is wise, but sellers or companies being acquired can benefit from due diligence as well. An Orange County, California small business IP lawyer from our firm is ready to help you.
Why Is Intellectual Property Due Diligence Such a Necessary Step?
You need to do as much homework as possible when you make any kind of business deal. Mergers and acquisitions can cause big headaches if they are not properly thought out. When you do your due diligence during this process, you can:
- Assess the quality of a merger or acquisition target’s IP
- Determine the value of the IP and the company as a whole
- Search for problems that could make it difficult to use valuable IP
- Familiarize yourself with any pending, known, or threatened litigation relating to IP
- Understand any existing agreements a company has entered into concerning its IP
What Gets Reviewed During the Due Diligence Process?
There is plenty of information that needs to be reviewed before any merger or acquisition deal can take off. If you want to avoid any intellectual property issues, you’ll want to consider all of the following:
- A company’s patent and patent applications
- Any trademarks, copyrights, and trade secrets owned by a company
- Publicity rights
- Software and databases
- Active domain and “doing business as” names
- Slogans and branding
Should Buyers and Sellers Both Do Their Due Diligence?
It’s not just buyers who need to do their due diligence. The merger or acquisition target should do some research and preparation of their own. If your company is being bought, you should look into any potential IP-related issues that could interfere with a sale. This can allow you to fix them and make changes or amendments to any existing agreements that you have developed.
Do I Need an IP Lawyer?
We do recommend having a lawyer who knows about intellectual property. They can help you spot issues that you may have had trouble finding on your own. Our attorneys have plenty of experience helping people and companies with trademarks, patents, and other types of IP. We should be able to assist you too.
Schedule Your Consultation
Whether you are buying a company with IP to offer or you are selling off your business assets, it can be smart to have an experienced attorney at your side. Contact Burns Patent Law and ask to schedule a meeting with our legal team. We would be happy to tell you more about how we can help companies with any of their intellectual property-related needs.