Assessment of Intellectual Property
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Written on 27 June
Once the basic information on intellectual property has been
obtained it is essential that a potential buyer assess the significance
or worth of the intellectual property associated with a business, for
example they may wish to negotiate special provisions in a
share purchase agreement based on this assessment.
The following provides a list of considerations a buyer must
bear in mind when carrying out this assessment:
- Does the business actually have legal ownership
of the intellectual property? i.e. does the seller have adequate
control of rights created by employees or independent contractors? This
is also an important consideration particularly if the seller is a
large corporate group and is selling only part of its group to the
- Have all the key brands been afforded protection
in all the relevant markets? For example if the seller claims to
operate internationally in relation to a particular brand, does that
brand have the required protection in all the relevant markets?
- When are the key brands due for renewal? Or are
they even capable of renewal? What is the cost associated with renewals?
- Are any of the IPRís subject to litigation? E.g.
are there any oppositions, revocations or invalidity proceedings in
- Will the sale of business trigger any licences to
become terminated? How will this impact on the conduct of the business
- Does the seller wish to share any IPRís with the
buyer, what is the most suitable structure to achieve this?
All of the above are matters that will significantly impact
the value of IPRís to a potential buyer.]
Written by Rehana Ali
About the Author
Lawson-West specialise in commercial, business and employment law. Our team
of dedicated commercial solicitors can help with buying or selling a business,
business law and disputes, landlord and tenant issues and commercial property.
Our expert employment team can offer practical advice and guidance on all
aspects of employment law including redundancy, compromise agreements and
dismissal procedures. Visit
www.lawson-west.co.uk for more information.
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Article Published/Sorted/Amended on Scopulus 2014-08-22 09:03:46 in Legal Articles