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Article of related interest

Intellectual Property Due Diligence

Submitted By: David Dawsey | Word Count: 849 | Views: 134

The importance of due diligence in any investment, merger, or acquisition decision cannot be understated. Decisions can no longer be made based solely upon a good business plan. In today's knowledge based economy intellectual property (IP) is often a company's single most valuable asset. However, IP due diligence is typically an afterthought.

The Goals

The goals of IP due diligence should be collaboratively identified by the organization leading the general due diligence investigation and the IP due diligence team. The goals should then be reduced to an IP due diligence plan.

The IP due diligence team should consist of independent IP counsel. The target company's IP counsel should not be used as one can never fully critique their own work, in addition to the potential conflicts of interest.

Several factors must be considered in identifying the goals of the plan. First, the team should discuss the nature of the transaction. IP due diligence goals will differ for investments, mergers, and acquisitions. Secondly, the financial value of the transaction must be considered. There is no use in completing $1 million in due diligence for a $1 million dollar transaction. Third, the risk associated with the transaction must be analyzed. For instance, a $1 million venture capital (VC) investment in a high-tech start-up has a much higher probability of loss than a $100 million merger of established companies. Fourth, the underlying reason for the transaction should be discussed. For example, if a company is acquiring a target company for a particular product line or technology there should be a primary focus on the IP protecting that interest.

The Scope

The scope of IP due diligence investigations is limited by the goals identified above. The scope of IP due diligence should include investigations into the patents, trademarks, copyrights, and trade secrets of the target company to identify weaknesses, potential liabilities, and potential opportunities.

There are some general considerations applicable to all forms of IP. For instance, all of the target company's current IP should be identified and cataloged, including current patent and trademark applications. This process should identify the dates of application, issuance, expiration, required maintenance payments, and whether foreign IP protection has been obtained. Additionally, the true ownership of each piece of intellectual property must be identified. This is particularly true for IP that has been licensed or assigned to the target company. Ownership verification requires meticulously analyzing assignments and licensing agreements, as well as cross-referencing the Patent & Trademark Office files. A golden rule of IP due diligence is to independently verify everything!

There are several aspects of IP due diligence that are unique to situations wherein the target company possesses a patent portfolio. A complete investigation into a company's patent portfolio can be expensive, yet the cost is typically a drop in the bucket when compared to the cost of litigating a patent infringement claim. Carefully identifying the goals of the IP due diligence investigation will often eliminate the need to completely analyze over half of a company's patents. After all, there is no need to perform due diligence on outdated IP that the company no longer uses. Alternatively, IP that is essential to a company's operations should be afforded additional scrutiny.

An IP due diligence plan should include an infringement analysis of the company's key IP assets. Key patents should be analyzed first to determine if they sufficiently cover the product line of interest. It is not uncommon to find that a company's patent portfolio does not adequately protect their main product lines.

The analysis should then turn to competitor's products. It is essential to identify potential infringement lawsuits during the due diligence investigation. One must determine both whether competing products infringe the target company's patents and if the target company's products infringe patents owned by third parties. During this investigation the IP due diligence team can also identify whether the target company's patents are very broad and strong or narrow and weak. The strength of patents has a direct relationship to their value.

A target company may be willing to contribute to the cost of the infringement analysis portion of the IP due diligence. This is because a non-infringement opinion from counsel can protect a company from claims of willful patent infringement. When a company relies in good faith on a competent opinion of an attorney that the company's product does not infringe a third party's patent, the company will not be held to be a willful infringer. This is important because actual damages can be increased threefold in cases of willful infringement.

Comprehensive due diligence investigations into trademark, copyright, and trade secret matters are not nearly as involved as patent investigations. However, when mergers or acquisitions involve ownership transfer of valuable trademarks it is imperative to investigate the validity, ownership, and potential infringement claims of the mark.

Conclusion

IP due diligence is necessary to avoid costly mistakes and properly determine the value of business transactions involving IP. This is true for both traditional brick and mortar companies and high tech companies. The specialized nature of IP due diligence requires that an IP attorney be retained to properly perform the investigations.

Published At: Isnare Free Articles Directory
Permanent Link:
http://www.isnare.com/?aid=97282&ca=Business+Management





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1a.
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6a.

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---------------------------------
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9.1.

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Sun Mar 23, 2008 7:15 am (PDT)


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10.1.

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Sun Mar 23, 2008 7:16 am (PDT)


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11.

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Sun Mar 23, 2008 7:19 am (PDT)


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12.1.

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Sun Mar 23, 2008 7:30 am (PDT)

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13.1.

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Sun Mar 23, 2008 7:31 am (PDT)


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Sun Mar 23, 2008 7:35 am (PDT)


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16a.

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Sun Mar 23, 2008 7:35 am (PDT)


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Sun Mar 23, 2008 7:42 am (PDT)


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Sun Mar 23, 2008 7:42 am (PDT)

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19.1.

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Sun Mar 23, 2008 7:45 am (PDT)


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Posted by: "Cortney Foster" cfatt2@gmail.com

Sun Mar 23, 2008 7:47 am (PDT)


Hurry get this auto reponder for a one time small charge of $19.99 and never pay again! Check it out today, and forward this to all your friends...

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I got this because I needed an autoresponder, however its has made a lot of money for me!

21.1.

Want to Migrate to France, Spain, Germany or New Zealand??

Posted by: "sw_antony" sw_antony@yahoo.com   sw_antony

Sun Mar 23, 2008 7:56 am (PDT)

Want to Migrate to France, Spain, Germany or New Zealand??
Australia, NZ and Canada accept hundreds of thousands of
foreign migrants every year to meet their manpower requirements.
For the France, the processing takes generally 4-6 weeks. When a
decision is reached,
the approval is post to the French applicant. The UK may be
taking lesser time in handling the immigration cases.

Sincerely,
Kate Andy.
.........................................
http://www.migrateabroad.com/

22a.

Are You The One That We Looking For?, 3/23/2008, 2:00 pm

Posted by: "87hotrod@yahoogroups.com" 87hotrod@yahoogroups.com

Sun Mar 23, 2008 7:57 am (PDT)

Reminder from: 87hotrod Yahoo! Group
http://groups.yahoo.com/group/87hotrod/cal

Are You The One That We Looking For?
Sunday March 23, 2008
2:00 pm - 3:00 pm
(This event repeats every day.)

Notes:
We are the one of the most committed and experienced teams available in the industry today, a dynamic team made up of top-notch Systems Consultants, Information Technologists and Financial Wizards.

We have also set up an independent marketing team which will be spearheaded by our network marketing consultants, international ambassadors and top financial consultants.

Lives by our motto, "Empowering people to achieve their personal best".

Aspires to be a Center of Enlightenment for people from all walks of life.

Aspires to be the biggest Global Business Enterprise, promoting e-commerce opportunities in a world that has become borderless due to the Internet and state-of-the-art ICT tools.

Visit now and experience the greatest tools ever build

http://primebusiness.ui2u.com/

All Rights Reserved
Copyright © 2008
Yahoo! Inc.
http://www.yahoo.com

Privacy Policy:
http://privacy.yahoo.com/privacy/us

Terms of Service:
http://docs.yahoo.com/info/terms/
23.1.

Earn $18,000 Next Month with ADSENSE!

Posted by: "elam" ayse_marketing_005@yahoo.com   ayse_marketing_005

Sun Mar 23, 2008 8:01 am (PDT)

Earn $18,000 Next Month with ADSENSE!
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This is not spam. You receive this mail because you are a member of this yahoo group. If you do not wish to receive any more mails from this yahoo group, please follow these 3 steps:
- Scroll to the bottom of this page and find the links of Yahoo Groups at the very bottom of this page.
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By selecting this option, you will be stil member of this yahoo group but will not receive individual mails to your email. If you wish to totally remove this yahoo group, click on the "Leave Group" button in Edit Membership page which is located next to blue "Save Changes" buton.
Note: If you are a group moderator, and do not wish to receive our post, please email to remove-groups@hotmail.com addres with the group name indicated in the subject line.
24a.

Get Massive Website Exposure

Posted by: "Tinnnitus" temp12@SAFe-mail.net   homanilaopia

Sun Mar 23, 2008 8:12 am (PDT)

Get Massive Website Exposure

Generate Instant Website Visitors to Your Site With StumbleUpon Traffic. Get the Insider Techniques to Receiving 500 - 1000 Visitors or More Daily, For Free!
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http://groups.yahoo.com/group/advertize_anything
http://groups.yahoo.com/group/biz-for-all
http://groups.yahoo.com/group/Ad_Exchange_4_All
http://groups.yahoo.com/group/1st_New_Biz_Opps

=================
Guy Gets Girl
http://groups.yahoo.com/group/Find_a_Romance/message/913

This is not a spam. You receive this e-mail because we are in the same group. Please change your group message delivery setting to "Web Only" or choose "Leave Group" if you wish to be removed from future mailings. Or forward the whole e-mail to zonta43@hotmail.com with the subject "remove" if you don't know how to do it, and then wait for our instructions. If you are a group ADMIN and no longer wish to receive our post, please remove us from your group. We don't own or even know your e-mail address, so please let us know which group you are in when you write to us and, most importantly, DO read our reply. Thanks for your understanding.

25.

IF YOU WANT HELP CHILD PLESE CALL AT +919911099737

Posted by: "parhlad aggarwal" aggarson@gmail.com   parhlad_aggarwal

Sun Mar 23, 2008 8:36 am (PDT)

parankur.jpg (*image/jpeg*)
75K<?ui=2&ik=a99c33c9f1&view=att&th=118dc476a1aab43c&attid=0.1>PRANKUR
IN LAST WITH CANDEL WITH SISTER OUT CHURCH JANTAR MANTAR SANSAD MARG NEW
DELHI

*From ; *Parhalad Kumar Aggarwal *B-58/149, Guru Nanak Pura, Laxmi
Nagar, Delhi-1100092 *
*Contact No.- 00919911099737 E-mail: parhlad_aggarwal@yahoo.co.in
*Please give this appeal a suitable place in your notice board or Please
help my poor child for good *education*
*Appeal for education help for a minor child in good school*
* *
*New Delh *Mr. Parhalad Kumar Aggarwal, who was born in *tribal area *of
Lang village of Ambika Pur region of Madhya Pradesh now residing in Delhi,
has always faced tough times in his life right from his childhood. Firstly
his mother has been a mentally retarded person because of whom his educated
father also became homeless as he could not manage his business and property
and also could not pay enough attention towards his children. Mr. Parhalad
Kumar Aggarwal some how grew up facing such hardship in his life and he
could not get that education as a child which he deserved like other
children but he walked on the way of social work as it has been seen
generally that such child either go for some criminal way or become victim
of some anti-social habits. But Mr. Parhalad Kumar Aggarwal kept himself
miles away from all these things, rather Mr. Parhalad Kumar Aggarwal made an
objective as " I have faced the hardship in my life and no body came in
front to hold my hand and help me, I will always help at my level-best
whoever will come to seek my help". Mr. Parhalad Kumar Aggarwal was also
getting success in his this objective but some mean people tried to divert
him from his way for their own political benefits. Still Mr. Parhalad Kumar
Aggarwal kept going on his way of honesty and helping others steadily. Mr.
Parhalad Kumar Aggarwal has also been attacked several times. His wife who
is a religious and God-faithing lady always help and supported him in his
good deed. In spite of all this, as Mr. Parhalad Kumar Aggarwal is
financially weak, is unable to give his children that education which they
deserve. He wants to give his children international-level education so that
as he has been deprived of quality education in his childhood, his children
may not be deprived off. But Mr. Parhalad Kumar Aggarwal's son (Nikita (girl
)7 year *Prankur, (Boy) aging 5 years virat near about 2 year s resident of
**Delhi**, **India*) is not getting admission to any school, the biggest
reason of which is his poorness. *Will you not help such social worker who
always believes in god, who has always faced bad times in his life and has
always help those who has come to seek his help? *If you will help Mr.
Parhalad Kumar Aggarwal to seek admission for his son (*Prankur*) in a good
school, then Mr. Aggarwal who though is unable to give you something in
return but will definitely pray to God for your happiness.
Please give this appeal a suitable place in your notice board or Please help
my poor child for good *education Appeal FORWORD TO FINANCE HELP TO YOUR
ALL FRIND AND CONTACT
*

YOU CAN SEND FINANCE HELP TO CASH OR MONY ORDER AND CHEAK TO
*PRAHLAD *
*B-58/149, Guru Nanak Pura, Laxmi Nagar, Delhi-1100092 *
Contact No.- 00919911099737 E-mail: parhlad_aggarwal@yahoo.co.in**
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iS iT WiN-abled ? so, everyone (minus cheaters & abusers) has equal opptions for reasonable revenue ?

:)