One Size Does Not Fit All: Tailoring IP Due Diligence to the Transaction

Investing in, acquiring, or partnering with companies requires a due diligence investigation in which intellectual property (IP) will play a role. An IP diligence review basically determines if a company has good title to its IP, and whether third-party IP might be asserted against the company’s products or services. The level of review varies by the strategic objectives and the type of transaction. Oftentimes, a limited budget requires identification of the most important issues to review. This article, from a primarily US perspective, describes four levels of due diligence review, and the level of review warranted by different types of transactions. For efficiency, key questions upfront can focus the review.