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ARTICLE · 03 DECEMBER 2015

Intellectual Property Due Diligence

While the target or seller of the business tends to view IP diligence as something that has to be suffered as part of the transaction, it need not necessarily be so.

IndiaIntellectual Property

In any corporate transaction involving acquiring a business or a stake therein, the acquirer conducts due diligence of the targets' assets and liabilities, in order to derive comfort that the business is as has been informed to the acquirer and to analyze the risks of the business, as currently conducted. With the help of an appropriate due diligence exercise, the acquirer weighs the assets, liabilities and potential risks associated with the transaction, analyze the extent to which any liabilities or risks could be minimized, and finally negotiate the total value for the transaction.

Intellectual property (IP) due diligence is an integral part of the legal due diligence process as often tremendous worth is associated with the intangible assets of the business particularly in contemporary times. Accordingly, IP due diligence involves analyzing the intangible assets of a business, checking valid intellectual property rights subsisting therein and scope of

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