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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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Friday, October 10, 2008

[87hotrod] Digest Number 38215

Messages In This Digest (16 Messages)

Messages

1a.

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Thu Oct 9, 2008 10:38 pm (PDT)

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2a.

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3.

Merits of Islam in the Relationship Between Men &Women

Posted by: "Mouslima Badrdin" amisb65@yahoo.fr   amisb65

Thu Oct 9, 2008 11:14 pm (PDT)



I am happy to be a member of this group and I consider you my friends. As a friend , I like to share with you some thoughts that I believe will be useful for your life.
 
Merits of Islam in the Relationship Between Men &Women 
 
 
 
1- Islam encourages marriage to prevent committing adultery, and considers marriage to be one of the ways of the Messengers;The Messenger of Allah (peace and blessings of Allah be upon him) said: "O young people, whoever among you can afford to get married, let him do so, for it helps one to lower the gaze and protect the private parts (i.e., remain chaste). Whoever cannot afford it, let him fast, for it is a protection for him." 2- If a man wants to get married but is unable to spend on a wife, then he should adhere to the words of Allah.24:33 "And let those who find not the financial means for marriage keep themselves chaste, until Allâh enriches them of His Bounty"  
3- Islam urges people to get married, and prohibits celibacy and castration. It is forbidden to forego getting married even if the intention is to devote oneself to worship. "There is no monasticism in Islam." because they are against his nature, and against having children. 
4- Islam forbids adultery for the sake of reserving lineages, and to prevent unlawful pregnancies and social problems.17: 32. And come not near to the unlawful sexual intercourse. Verily, it is a Fâhishah [i.e. anything that transgresses its limits (a great sin)], and an evil way (that leads one to Hell unless Allâh forgives him). 
 5- Islam forbids accusing others of adultery and considers it a great sin. 24: 15. When you were propagating it with your tongues, and uttering with your mouths that whereof you had no knowledge, you counted it a little thing, while with Allâh it was very great. 
 6- Islam prohibits a man to be alone with a woman who is not a relative he can't marry, because that causes temptation to do immoral and evil actions. The Prophet (peace and blessings of Allah be upon him) said: "No man is alone with a (non-mahram) woman but the Satan is the third one present." 
7- Islam forbids unlawful sexual relationships and marrying a woman not chaste.5: 5.. Made lawful to you this day are AtTayyibât [all kinds of Halâl (lawful) foods, which Allâh has made lawful (meat of slaughtered eatable animals, etc., milk products, fats, vegetables and fruits, etc.). The food (slaughtered cattle, eatable animals, etc.) of the people of the Scripture (Jews and Christians) is lawful to you and yours is lawful to them. (Lawful to you in marriage) are chaste women from the believers and chaste women from those who were given the Scripture (Jews and Christians) before your time.  
 
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4.1.

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Thu Oct 9, 2008 11:24 pm (PDT)

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THINK TWICE BEFORE YOU CLOSE

NOTE: THIS MESSAGE IS SENT TO INTERESTED MEMBERS OF THE GROUP OTHERS
PLEASE IGNORE.

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5.1.

EARN 300-600 DOLLARS PER MONTH WITHOUT INVESTMENT

Posted by: "Loganathan G" sfiloganathan@yahoo.com   sfiloganathan

Thu Oct 9, 2008 11:25 pm (PDT)

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? (they also should work)

? TO ENROLL MEMBERS YOU CAN USE YAHOO GROUPS OR FREE ADS. 

? FOR INCOME PROOF MAIL ME AT sfiloganathan@yahoo.com

? 100% LEGAL.  YOU SHOULD WORK OTHERWISE YOU CANNOT REAP THE FULL BENEFIT

? YOU CANNOT BECOME RICH OVERNIGHT. BUT FINANCIAL INDEPENDENCE CAN BE GAINED
 
THINK TWICE BEFORE YOU CLOSE

NOTE: THIS MESSAGE IS SENT TO INTERESTED MEMBERS OF THE GROUP OTHERS
PLEASE IGNORE.

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6.1.

EARN 300-600 DOLLARS PER MONTH WITHOUT INVESTMENT

Posted by: "Loganathan G" sfiloganathan@yahoo.com   sfiloganathan

Thu Oct 9, 2008 11:26 pm (PDT)

EARN 300-600 DOLLARS PER MONTH WITHOUT INVESTMENT

           
For more details please log on to
http://www.moreinfo247.com/10268260/CB

? YOU WILL BE PAID  1-10 US DOLLARS FOR EACH MEMBER JOINING UNDER YOU
? (they also should work)

? TO ENROLL MEMBERS YOU CAN USE YAHOO GROUPS OR FREE ADS. 

? FOR INCOME PROOF MAIL ME AT sfiloganathan@yahoo.com

? 100% LEGAL.  YOU SHOULD WORK OTHERWISE YOU CANNOT REAP THE FULL BENEFIT

? YOU CANNOT BECOME RICH OVERNIGHT. BUT FINANCIAL INDEPENDENCE CAN BE GAINED
 
THINK TWICE BEFORE YOU CLOSE

NOTE: THIS MESSAGE IS SENT TO INTERESTED MEMBERS OF THE GROUP OTHERS
PLEASE IGNORE.

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7a.

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Thu Oct 9, 2008 11:38 pm (PDT)

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8.1.

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Thu Oct 9, 2008 11:39 pm (PDT)


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Thu Oct 9, 2008 11:49 pm (PDT)



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10.1.

MASTER PSYCHIC READER~ ACCURATE & AMUSING

Posted by: "Fran Galton" thehair41@yahoo.com   thehair41

Fri Oct 10, 2008 12:18 am (PDT)

I am a psychic and writer who has helped thousands of people through my
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11.

Rahasia Cerdas Hasilkan Puluhan Juta Rupiah Dari Internet

Posted by: "Bisnis Cerdas" indomilioner@yahoo.co.id   indomilioner

Fri Oct 10, 2008 12:34 am (PDT)

Selamat siang rekan-rekan pengguna internet!

Mari bergabung bersama kami di bisnis online paling cerdas di tanah air, kami menjamin sepenuhnya bahwa Anda benar-benar dapat menghasilkan income melimpah secara mudah dari internet. Silakan pelajari tiga keunggulan yang kami tawarkan untuk Anda dan tidak semua system penghasil uang mampu memberikannya untuk Anda.

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12.

Economic Worries. This will help, 10/10/2008, 4:00 am

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

Fri Oct 10, 2008 12:43 am (PDT)

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

Economic Worries. This will help
Friday October 10, 2008
4:00 am - 5:00 am
(This event repeats every day.)
Location: Economic Worries. This will help

Notes:
Economic Worries. This will help

http://www.lhnprobuilder.com/sophia/

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Yahoo! Inc.
http://www.yahoo.com

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

Terms of Service:
http://docs.yahoo.com/info/terms/
13.

Genuine Lifetime Income!!  , 10/10/2008, 4:00 am

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

Fri Oct 10, 2008 12:43 am (PDT)

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

Genuine Lifetime Income!!
Friday October 10, 2008
4:00 am - 5:00 am
(This event repeats every day.)

Notes:
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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/
14.

TIPS GRATIS, 10/10/2008, 4:00 am

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

Fri Oct 10, 2008 12:43 am (PDT)

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

TIPS GRATIS
Friday October 10, 2008
4:00 am - 5:00 am
(This event repeats every day.)

Notes:
Tips ini akan membuat anda mempunyai bisnis online walaupun Anda tidak memiliki website/blog. Anda hanya mensetting diawalnya saja dan lupakan Anda tinggal menunggu uang masuk ke rekening Anda, Saya sekarang juga sedang mengalami hal itu.

UANG MASUK KE REKENING BCA SAYA TANPA SAYA SADARI DAN ITU DARI BEBERAPA BISNIS ONLINE YANG SAYA SETTING DENGAN MENGGUNAKAN TIPS INI PADAHAL SATUPUN WEBSITE TIDAK SAYA MILIKI. TAPI DENGAN TIPS INI SAYA MEMPUNYAI BEBERAPA BISNIS ONLINE YANG BERJALAN OTOMATIS TANPA CAMPUR TANGAN SAYA LAGI. CUKUP KERJA DI AWAL SAJA.
Tips ini gratis saya berikan bagi Anda yang membeli modul uangpanas.com lewat link saya. Saya tidak menjelaskan tentang bagusnya uangpanas.com karena Anda bisa baca sendiri nanti. Anda bisa saja membuka langsung dengan mengetikkan www.uangpanas.com kedalam kotak pencarian/search engine yahoo, Mozilla, atau yang lain yang Anda gunakan. Oleh karena itu agar Anda mendapat tips tambahan dari saya langsung yang akan membuat Anda mempunyai bisnis online tanpa website, tanpa sewa hosting dan ilain-lain, saya berharap Anda membeli lewat link ini. http://uangpanas.com/?r=sule

Ingat username "sule" yang akan memberikan Anda tips ini bukan yang lain. Tips ini akan saya kirimkan ke alamat email yang Anda gunakan waktu Anda memesan modul uang panas. Setelah Anda memesan Anda diwajibkan oleh pengelola uangpanan untuk mengirim korfirmasi pembayaran ke no.hp saya yang bisa Anda dapat setelah Anda mendaftar. Tips ini sangat dibutuhkan oleh bisnis-bisnis yang akan dapatkan dari uangpanas.com. Saya memberikan tips ini karena di uangpanas tidak Anda dapatkan tips semacam ini, Tips ini hanya Anda dapatkan dari saya.

JIKA ANDA INGIN SEPERTI SAYA PESAN UANGPANAS DI
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Catatan:

Setalah Anda melakukan pembayaran segera kirim sms konfirmasi ke saya. No.Hp saya bisa Anda dapatkan di kolom pemesanan uangpanas

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/
15.1.

Generate tons of traffic to your website !!!

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Fri Oct 10, 2008 12:48 am (PDT)


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16.1.

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Fri Oct 10, 2008 1:01 am (PDT)

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iS iT WiN-abled ? so, everyone (minus cheaters & abusers) has equal opptions for reasonable revenue ?

:)