Protecting Intellectual Property During Mergers and AcquisitionsKurt Harrison | August 16, 2018 | 0 | Advertising & Marketing
Mergers and acquisitions place IP of stakeholders at risk. CDSlegal highlights the importance of protecting IP investments especially if these IP compose a great percentage of the value of the company. Contesting the value and protecting the IP are thus critical aspects in mergers and acquisitions. To ensure a successful deal, the following approaches are recommended.
Clearly Identify Intellectual Property
Identification of IP is crucial in mergers and acquisitions. IP should be properly categorized as tangible and intangible assets. This ensures the creation of unambiguous titles to the assets and establish appropriateness of provisions of succeeding contracts to be issued. Furthermore, this ensures the clear transfer of copyrights, patents and trademarks. Clear identification of IP is also a critical feature in tax considerations. An essential factor in identification of IP is securing confidential data and data management during review across stakeholders, financial institutions and government agencies.
Protect Highly Valuable IP
Highly valuable IP include those required by the acquirer in their conduct of business. The investment of the seller on an IP asset, for example, may have little value to the acquirer. Treatment of data during valuation is also relative to organizational level and reviewing parties. CDSlegal confronts these issues differently using technology with updated ISO Security Certificate for special approaches on data management and protection. Conflict of interests can also be avoided by engaging a valuation specialist knowledgeable in protocols of IP cases.
Manage and mitigate IP risk
Mergers and acquisitions require detailed discussions on risks of transfers of IP. This is especially true if IP becomes the core tenant in M&A issue. This avoids infringement of IP coverage, insurances representations and warranties. Discussions on risk management and mitigation will involve highly sensitive intangible assets in contest, compliance of legal requirements and funds for risk management. Discussions of such scale will require technology including eDiscovery and cloud sharing to enable accelerated and efficient risk management strategies. Aligning strategic goals by parties involved ensures the proper identification of IP, assessment of valuation and mitigation of impact of risks involved. This also allows resolution of M&A-related inquiries from the FTC for immediate relief of IP or M&A disputes. More information brand name: CDS LEgal
Locate and Time IP Valuation
Location and timing are also critical features in M&A discussions of IP. This enables parties to review jurisdictions of various IP in contest and ensure compliance of regulations and laws in the environment with which they operate. This also enables parties to extend their network to other IP specialists in jurisdictions involved. Australia and the USA, for example, have different laws in assigning licenses. The value of IP also depends on the location and time of valuation. The treatment of IP is also dependent on the frequency of valuation. The timing depends on various factors such as global shifts in the market and external factors such as natural calamities.
The valuation and protection of IP in M&A deals with complex data. In light of technological advancement and mutual relationships in mergers and acquisitions, parties involved can manage data on IP in a highly secure and efficient environment such as eDiscovery. For more details, visit CDSlegal at http://cdslegal.com/.