Review Past Litigations of IP<\/strong><\/p>\n\n\n\nFor buyers, past litigations could be a strong check as it scrutinizes the patent\/IP thoroughly. The IP that withstands the litigations is considered to be the best. However, the buyers must review the details of litigations to understand the challenges posed and how they were dealt with.<\/p>\n\n\n\n
4. Check Re-examinations Filed for IP<\/strong><\/p>\n\n\n\nPatents or IPs that have re-examinations filed with the respective patent authorities are subject to questionable validity and scope of the claims. Such types of patents should be avoided by purchasing companies.<\/p>\n\n\n\n
5. Look For Existence of Prior-art Claims<\/strong><\/p>\n\n\n\nPatents or other IPs that have prior-art and related claims should also be avoided by companies while looking to acquire IP from a target company. Prior arts destroy the existence of IP and all rights are proved to be null and void. This should be one of the most important steps in a due diligence checklist if a purchasing company is looking to acquire a patent that is 100% unique in every aspect.<\/p>\n\n\n\n
6. Ownership Verification<\/strong><\/p>\n\n\n\nThe real owner of a patent or IP must be verified by the purchasing company. It is common for employees and companies to have shared or joint ownership of an IP. Therefore, it requires the purchasing company to work out such trivialities of ownership before beginning IP acquisition transactions.<\/p>\n\n\n\n
7. Check for Encumbrances<\/strong><\/p>\n\n\n\nThis vital step in the due diligence checklist involves conducting background checks to find out whether the IP available for sale has been already licensed by the target company to other companies. IP that has already been licensed to other companies often loses its business value. It is always preferable to acquire IP that is innovative and has never been marketed before.<\/p>\n\n\n\n