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IP Due Diligence: What Does It Mean to You?

By Patrick Fay
June 01, 2004

The evaluation of the assets and liabilities of a business is referred to as a due diligence review. Most commonly, these evaluations determine the value of a business for purposes of investment or the establishment of a relationship with the business. Because the value of intellectual property has increased substantially recently and patent protection in many countries has expanded to cover software and business methods, businesses without IP assets and existing or potential IP-related liabilities are rare. With the consistent increase in damages for IP infringement and the possibility of business-crippling injunctions, it is likely that any business will be subject to, or will itself conduct, an IP due diligence.

Due diligence reviews identify problems early on when they are easier to cure. Thus, reviewing the process and its results is helpful in understanding and addressing issues affecting the value of your business, and will allow you to meet due diligence reviews calmly and effectively when they arise.

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