What is the Scope of Due Diligence in Intellectual Property?

Due diligence refers to the comprehensive and careful evaluation of possible investments and it can apply to both individual and corporate situations. This review can be particularly complex where the investment involves evaluation of technology and intellectual property rights, such as patents and protectable trade secrets.

Due diligence is critical for companies to fully understand an investment’s nature as well as the risks of that investment. It is a task that is essential for the preparation of any investment, whether at the individual or corporate level. In Miami/Boca Raton or Naples, you have a number of choices – Experience and diversity of practice, however, narrow the selection process to a limited number of individuals and firms who can best serve your personal or company needs. John Faro and his firm, Faro & Associates, have both of this unique combination of experience and diversity of practice; and, are available to conduct such review locally (in Florida) or wherever the review is to be conducted nationally.

In the realm of intellectual property, a practitioner in Miami/Boca Raton or Naples may be asked to complete a due diligence review related to any acquisition or possible merger. While the summary and information contained in such report can vary tremendously based on the task at hand, it can be an important part of a company or group of individuals choosing to make an investment. This is why it’s so important for due diligence to be undertaken as a serious matter. An intellectual property attorney can help manage situations where due diligence conflicts have occurred.

With every due diligence project for intellectual property, several basic steps should always be followed. The first stage is to understand a company’s basic services and products, including any projected products. At the next stage, an investor conducting due diligence will determine the availability of intellectual property rights that relates to the services or products, whether in the present or in the future. At this stage, the identification of such intellectual property is used to inventory a company’s intellectual property rights. The priority for each company at this stage in the process will vary based on the specific services or products being considered. For example, new technology developments mean that confidential information or trade secrets are likely the hottest topics in intellectual property for that project. When individuals assign different values during due diligence, conflicts are more likely.