Did you know that within the last quarter century, intellectual
property (IP) and intellectual capital have emerged as leading
assets? In fact, the majority of technology companies' assets
are intangible ones, such as IP and intellectual capital.
Given the profitability and prominence of IP and intellectual
capital, undesirable IP due diligence findings can make investors
lose interest in a target company.
IP or intellectual capital may refer to various assets,
including a company's trademarks, patents, designs, copyrights,
trade secrets, proprietary information or know-how.
Imagine an investor, looking to acquire a target that relies
heavily on its name and brand - like a big player in the fashion
industry. What if the IP or intellectual capital of the target does
not have a business value?