IP M&A Due Diligence

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IP due diligence for mergers and acquisitions tells you exactly what intellectual property you're buying, how strong it is, and what risks ride along with it, so you can price the deal and structure protections with eyes open.

In a lot of deals, the intellectual property is the deal. Patents, trademarks, code, and trade secrets can make up most of a target's value, and a diligence process that treats IP as a footnote leaves you exposed. We dig into what you're actually acquiring, how defensible it is, and what liabilities come attached, then translate that into terms your deal team can use. Because our attorneys come from engineering, we read the technology and the patent claims directly instead of relying on a checklist.

Scoping the Review

Not every deal needs the same depth of IP diligence, so we start by matching the review to your objectives and timeline. A full acquisition warrants a different scope than a minority investment focused on a single asset. Industry shapes priorities too: patents drive technology deals, while trademarks carry the weight in consumer products. We build a plan that puts the limited hours where they matter most, flags the issues that can move price or kill a deal, and works within the access the seller actually gives you.

Patents and Freedom to Operate

Patent diligence has two jobs: confirm what the portfolio is worth and surface the risks that come with it. We review prosecution status and the odds pending applications grant, claim scope against the products that matter, validity exposure from prior art, remaining term and maintenance status, and the assignment chain that proves ownership. On the risk side, we assess infringement exposure from third-party patents, any pending or threatened litigation, and whether you can freely operate after closing. You get the full picture, not just a count of assets.

Brands, Trade Secrets, and Code

Beyond patents, value often hides in brands, confidential know-how, and software. We verify trademark registrations and actual use across the jurisdictions that count, plus any oppositions, coexistence deals, or restrictions on use. For trade secrets, we test whether the target actually protected them, since unprotected secrets are worthless. And for software targets, we map open source usage and license obligations, because a copyleft component buried in a core product can force source disclosure and quietly cap your post-closing flexibility.

Contracts and Change of Control

IP rights live and die by contract, so we read the agreements alongside the registrations. Inbound licenses define what third-party technology the target can use, outbound licenses can limit what it does with its own IP, and development or collaboration agreements often quietly split ownership. We pay close attention to change-of-control and anti-assignment clauses, which can trigger consents, termination rights, or lost licenses the moment your deal closes. Knowing the contractual terrain before signing is how you avoid buying rights that evaporate at closing.

Turning Findings Into Deal Terms

Diligence is only useful if it shapes the documents. We translate what we find into purchase price adjustments, targeted representations and warranties, indemnities with sensible caps and baskets, escrow for contingent IP liabilities, and pre-closing fixes that clear problems before they transfer to you. The same work feeds integration: we flag the key inventors and their assignment agreements, the system dependencies, and the licenses you'll need to keep running, so the assets you paid for actually function after the deal.

Frequently asked questions

It confirms who owns the IP, assesses whether it is valid and enforceable, checks freedom to operate, surfaces liens and other encumbrances, reviews any litigation, and audits employee and contractor agreements to make sure the rights were properly assigned. We scope it to the deal and to how central the IP is to the target's value.

It depends on the size and complexity of the portfolio. A simple matter can be done in 1-2 weeks, while a large or messy portfolio runs 4-6 weeks or more. We work to your transaction timeline without cutting corners on the review.

IP registrations, the chain of assignment records, license agreements, employee and contractor IP agreements, any litigation files, and prosecution records. We send a detailed request list up front so nothing holds up the review.

The usual culprits are broken assignment chains where the company does not clearly own what it thinks it owns, weak or missing employee IP agreements, undisclosed licenses, open source compliance gaps, and trade secrets that were never properly protected.

Findings can move the price, require the seller to fix problems before closing, lead to escrows or holdbacks, shape the scope of reps and warranties, and in serious cases prompt a restructuring of the deal. The point is to price and structure with the risks known instead of discovered later.

It is a fast first pass to find the major issues before you commit to a full review. It is the right approach when speed matters or when you just need an initial read on whether the IP is worth deeper diligence.

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