M&A Due Diligence

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IP in Corporate Transactions

M&A due diligence on intellectual property tells you exactly what you're buying, where the ownership gaps and encumbrances hide, and what to fix before closing a technology deal.

In most technology deals, the IP is the deal. Patents, source code, brands, and trade secrets are what you're actually paying for, so a vague representation that the seller "owns its intellectual property" isn't enough. We dig into the IP behind an acquisition, surface the problems that change your price or your terms, and tell you what needs to be cleaned up before you sign.

Finding Every IP Asset

You can't value or protect what you haven't located. We inventory the full set of IP assets in the target: issued patents and applications, registered and common-law trademarks, copyrighted code and content, trade secrets, domain names, and the contracts that grant or limit rights in all of them. Because our attorneys come from software engineering, we know where undocumented assets like internal tooling and open-source dependencies tend to sit, and we make sure they end up on the list.

Confirming Clean Ownership

Ownership of IP is only as solid as the paper trail behind it. We trace chain of title through assignments, employee invention agreements, and contractor and consultant contracts to confirm the target actually owns what it claims. Where we find gaps, like a key engineer or vendor who never assigned their work, we flag them and tell you how to close the hole through pre-closing assignments or post-closing covenants before they become your problem.

Spotting Liens And Restrictions

An asset the seller owns may still be tied down. We review existing licenses, security interests, joint-ownership arrangements, exclusivity grants, and pending or threatened litigation that could limit how you use the IP after closing. An exclusive license you didn't know about or a UCC lien against a core patent can quietly gut the value of the deal, so we map every encumbrance and explain its practical effect on your plans.

Sizing Up The Risk

Once the picture is complete, we tell you how worried to be. We assess validity and enforceability risk, freedom-to-operate exposure against third-party patents, and the likelihood of infringement claims, then translate that into terms you can act on: purchase price adjustments, escrows, specific indemnities, or walking away. You get a clear read on the real IP risk, not a checklist that buries the issues that matter.

Frequently asked questions

It confirms what IP exists, who owns it, and whether anything is encumbered by liens, licenses, or disputes, then assesses validity and freedom to operate. The depth depends on the deal, since a software acquisition gets a different review than an asset purchase. The goal is to tell you what you are really buying before you sign.

Typically two to six weeks, depending on how large and tangled the portfolio is. A focused review, for example just confirming clean title on a handful of key patents, can be done faster. We scope it to the deal timeline and flag the items that matter most early.

The recurring ones are missing inventor assignments, contractor agreements that never transferred the work product, undisclosed licenses, unclear joint ownership, and trade secrets that were never documented as such. Any of these can mean the seller does not fully own what they are selling. Catching them is the point of the exercise.

It depends on how serious the issue is. Findings can lower the price, require the seller to fix the problem before closing, get handled through indemnification, or in serious cases stop the deal. The leverage shifts to the buyer once a real gap is on the table.

Yes. We review what open source components are used and under which licenses, because copyleft terms can require disclosure of source code or restrict how proprietary code is used. For a software target this is often where the biggest surprises hide.

Yes, and it usually pays off. Finding and fixing assignment gaps or license issues on your own schedule beats having a buyer discover them mid-deal and use them to push down the price. Clean, well-documented IP gives you a stronger negotiating position.

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