Patent Due Diligence
Patent due diligence is an analysis method for reviewing a patent or patent portfolio to strategically align business objectives. Patent due diligence analysis qualitatively assesses the value of your intellectual property; alternatively, the intellectual property of others may be assessed.
Ultimately, this can answer the question of whether you can make a profit from your patents, whether by licensing, enforcing or selling your own IP rights. At the same time, a patent due diligence analysis can serve to protect your own business activities by securing them through patents. Practical experience shows: a patent due diligence analysis often reveals surprises and may uncover undiscovered potential.
The benefit of a patent due diligence analysis in the entrepreneurial argumentation towards banks and (potential) investors should not be underestimated. After all, your own intellectual property rights have a real value, which may not (yet) generate a profit, but which nevertheless represents an asset that can be lent out under certain circumstances.
In addition, a patent due diligence is also recommended if a transaction of a company is planned. This is because a company's IP rights represent an asset that must be taken into account when a company is sold.
Patent due diligence analysis as strategic business ‘must have’
Parameters of a patent due diligence analysis are:
- Legal status of the patent (Is it pending, granted, in force, lapsed, which countries, remaining term, etc.?)
- Ownership
- Patentability / legal validity
- Freedom to operate (Am I actually allowed to operate in the protected area?)
- Coverage by the protection claim / Scope (Do the patents still protect the own business activities?)
- Circumvention (Can the protection be easily circumvented?)
- Determining whether a patent is enforceable (Can the patent protection be enforced?)
When is a patent due diligence analysis strongly recommended?
- During a merger and acquisition / M&A transaction
- After you have received a cease and desist letter
- Strategically establishing a patent portfolio / stock patents
- Purchase of a patent
- Sale or licensing of a patent
Our patent law firm Köllner & Partner has already received international awards for our patent due diligence analysis,
Please contact us for more information at: info@kollner.eu
