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Intellectual Property Due Diligence in M&A: Verifying Ownership and Transferability of Assets, Mitigating Risks

Leveraging Due Diligence Findings When Negotiating Deal Terms

Recording of a 90-minute premium CLE video webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Wednesday, August 28, 2024

Recorded event now available

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This CLE webinar will guide M&A counsel on conducting effective intellectual property (IP) due diligence in merger and acquisition transactions. The panel will outline best practices for conducting a thorough IP investigation and provide strategies for using due diligence findings when negotiating deal terms.

Description

IP has become an increasingly important asset in M&A deals and verification of IP rights is often critical to the deal. To ensure a successful transaction, the buyer must conduct thorough IP due diligence to identify the IP involved and evaluate any risks before closing.

The key considerations when conducting IP due diligence on a target include (1) transferability of licenses, IP assets, and other IP rights to the buyer; (2) how IP licenses may limit the buyer's business goals; (3) IP ownership verification; (4) identifying blocking rights; and (5) removing liens and other encumbrances on IP assets.

Indemnification, representation, and warranty provisions in agreements play a significant role in allocating risks relating to IP that is pivotal to the deal. Also, issues that are uncovered during due diligence can be remedied by taking various actions pre or post-closing, including executing and recording assignments, amending licenses, filing claim amendments, and pursuing continuations and other actions if necessary.

Listen as our authoritative panel explains critical considerations for conducting effective IP due diligence in M&A deals and provides strategies for negotiating the deal and mitigating issues found during the due diligence process.

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Outline

  1. Significance of IP in M&A value and strategy
  2. IP valuation
  3. Conducting due diligence
    1. Identifying third-party IP assets the target may be using under a license agreement or other arrangement
    2. Review IP ownership, validity, and transferability
    3. Determine any limitations on each IP asset
    4. Ascertain any potential IP infringement risks, including lawsuits or infringement claims
  4. Typical problems that arise during due diligence
  5. Leveraging due diligence results in deal negotiations
    1. Value drivers
    2. Deal points
  6. Fixing problems that are uncovered during IP due diligence
  7. The role indemnification, representation, and warranty provisions play in mitigating IP risks

Benefits

The panel will review these and other key issues:

  • What is the significance of IP in M&A deal valuation and strategy?
  • What are the key drivers and considerations when conducting IP due diligence?
  • What are some problems that typically arise during the IP due diligence process?
  • How can M&A deal lawyers leverage IP due diligence results when negotiating price and other deal terms?

Faculty

Darvall, Daisy
Daisy Darvall

Partner
Kirkland & Ellis

Ms. Darvall’s practice focuses on advising clients on a wide variety of commercial transactions involving...  |  Read More

Ventling, Derek
Derek Ventling

Attorney
Kirkland & Ellis

Mr. Ventling advises clients on the intellectual property and technology aspects of complex corporate transactions,...  |  Read More

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