This article posted on our partner site Mondaq.com provides an overview of ten (10) intellectual property issues that should be addressed in technology sector mergers and acquisitions transactions.
In pre-transaction IP due diligence, as well as in IP terms and conditions, businesses should (among other things): determine the scope of the IP assets (e.g. registered patents, trademarks and copyrights, and so on - as described in the article); confirm established IP ownership rights (between inventors, employees, contractors); remain cognizant of any third-party rights regarding IP assets, pursuant to licences granted by the IP owner (e.g. royalties, territorial limits, scope of use); and determine whether liens have been granted on certain IP assets (e.g. as collateral in secured debt financing).
The reader of this article will want to consider the above points among others when conducting due diligence, or drafting the representations and warranties in a merger or acquisition agreement, or license agreement.