IP Due Diligence & Audit

What is IP due diligence and IP audit?

The process of IP due diligence includes identifying, assessing, and valuing the IP assets of a company, in addition to evaluating any risks or potential liabilities that may be associated with them. IP due diligence is typically performed preparatory to an M&A, investment in a technology venture, licensing or purchase of IP assets and any other scenario where IP assets are being transacted. While IP due diligence is performed by a third party, an IP audit is a systematic and comprehensive review and analysis by a company of its own assets to identify potential risks, as well as opportunities, and to ensure that these assets are properly managed and protected. For maximizing value, we recommend that an IP audit be performed on an ongoing basis as part your company’s IP management strategy.

When and why should an IP due diligence or IP audit be performed?

The value of a technology is critically dependent on its underlying intellectual property. Thus, an IP due diligence is a key undertaking in preparation for a technology-based transaction, allowing you to reach an informed decision on whether to proceed with the transaction or not, or possibly influence the deal terms. IP due diligence should be an integral part of your investigative process as an investor, which should be performed before carrying out a significant business transaction and as early in the process as possible.

IP audit is an invaluable tool for helping stakeholders to better understand the true value of their company’s IP assets. By identifying and valuing these assets, you can then make better-informed decisions on how to strategically manage and protect them. Additionally, by identifying any potential risks and liabilities associated with these IP assets, you will be able to advance proactive measures to mitigate such risks and hedge against them.

Make better-informed decisions for managing your IP assets. Contact us today at CDS-LUTHI to learn how IP due diligence and audit processes and can be employed to safeguard your business interests.