IP-Focused Due Diligence Process: Analysis Of Strategic Value And Risks

Intellectual property rights are among the most critical assets of companies in today's information- and technology-driven economies. In an M&A process, the legal status of these rights can directly influence the outcome of the transaction. Therefore, during the due diligence process, it is of great importance to thoroughly review IP assets such as trademarks, patents, designs, copyrights, and trade secrets. In particular, in scenarios where IP assets constitute the company's most valuable resources, such as software companies or film production companies, a superficial assessment of these rights may lead to undesirable outcomes for the transaction.

However, the evaluation of intellectual property rights should not merely follow a technical checklist. Instead, it should be conducted in alignment with the business model of the target company, the dynamics of the industry, and the strategic objectives of the transaction. The extent to which the target