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Justus Kreuels - 3. November 2022

IP Due Diligence

Performing IP transactions in a legally compliant manner

An IP due diligence analyses and evaluates the quantity, type and quality of a company's IP assets. This is particularly useful for companies that have a large IP portfolio, as intellectual property (patents, trademarks and designs) often is a significant part of a company's value.

An IP due diligence examines whether and to what extent IP rights exist, core technologies are sufficiently protected, legal disputes exist and what measures are in place to protect know-how.

An analysis also serves the purpose of obtaining an overview of the risks, if any, associated with the IP portfolio and technologies.

Preparation of IP Due Diligence

A complete listing as comprehensively as possible of all intangible assets relevant to the transaction is one of the prerequisites.

This includes both the applied for and registered property rights (patents, utility models, trademarks, designs) as well as possible copyrights.

License agreements for intellectual property rights, software or know-how and all other IP-related contracts are relevant, as are details of opposition and cancellation proceedings or pending or threatened proceedings regarding the infringement of IP rights.

Evaluation of a company's IP portfolio

The valuation of a company's intangible assets is of great relevance. IP rights are often the focus of interested parties in transactions and thus determine the price of the company to a decisive extent.

In addition, a thorough analysis helps to identify potential IP risks and to be able to assess the transaction in the best possible way.

A due diligence analysis is required in the context of a purchase or sale of companies, parts of companies or patent portfolios.

In addition, an analysis can also be useful when it comes to defining a company's IP strategy, e.g. with the aim of optimizing the patent portfolio. After all, the value of a company is determined not least by factors such as the filing strategy and the structure of the patent portfolio.

karo IP has years of experience in preparing IP due diligence valuations and assists clients in the purchase, sale and licensing of IP rights and IP portfolios. Depending on the requirements profile of the analysis, we work together with attorneys-at-law and international teams of lawyers.

Regarding Justus Kreuels:



Justus Kreuels, German and European Patent Attorney since 2011/2012, studied mechanical engineering at the TU Munich and the RWTH Aachen. He is co-founding partner of karo IP. A main focus of his practice is the enforcement of intellectual property rights in the field of mobile communication, Internet of Things (IoT), robotics, etc. in Germany.

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