Why is Patent Due Diligence Important for Your Organization?
What Is IP Due Diligence?
Intellectual property due diligence, also known as IP due diligence, is research into ownership conducted to determine the value of intellectual property. IP due diligence has become an integral aspect of the legal due diligence process, given the importance associated with a company’s intangible assets.
Intellectual Property assets have become one of the most valuable (Intangible) assets businesses could own. The strength of a company’s IP can determine the value of a corporate transaction. But how to determine an intellectual property’s value? This is where IP due diligence comes in.
As per research, about 70% to 80% of a company's market capitalization comes in the form of intangible assets, which include intellectual assets such as patents, trademarks, and copyrights. Patent due diligence is a non-negotiable activity for businesses to mitigate risks. When implemented correctly, a proper due diligence strategy provides numerous benefits to all stakeholders.
Due Diligence in Patent Acquisition
Patent due diligence refers to assessing a particular patent or a set of patents to support the company’s objectives. Patent due diligence can have many forms, as per the circumstances that require due diligence.
For example, offensive diligence may involve determining the violation of patents or whether any product infringes your patents as a first step towards enforcing your patents. Such diligence may involve researching other companies’ products to know if they violate your patents. In addition, it may comprise devising a licensing strategy to generate revenue aligned with your business goals, by exploring opportunities for in-licensing.
But patent due diligence can take a defensive form as well. It helps you to evaluate if you have the freedom to operate your business, gathering information about whether you are infringing on an entity's patents and taking measures to mitigate those risks.
When Should a Patent Due Diligence Analysis be Performed?
Depending on the goal of the examination, patent due diligence can be performed at any point during a patent's lifecycle. The following are some standard uses for patent due diligence:
Before Filing a Patent ApplicationDuring this stage, due diligence reviews help examine prior art searches before filing a Patent Registration application, to determine the patentability of an invention
Receiving a Cease-and-Desist LetterUpon receiving a patent infringement letter, you must first collect information. Conducting patent due diligence will help you and your IP counsel determine whether the allegation has merit and formulate the required strategy. It is a time-sensitive condition, as the letter mentions the time to stop the infringement.
Patent-Related TransactionsDue diligence is imperative when performing patent-related transactions like monetization (In-licensing, acquisition, pledging, etc.), Mergers and acquisitions, etc.
CRIF Patent Due Diligence Report Covers Key Answers to:
- How many patent assets does the company have?
- For how many years will these patent assets remain?
- What is the value of these patent assets?
- Geographical Coverage
- High-Value Patent Assets
- Technology and Patent Deployment
- Technology Timeline
- Peer Comparison
- Key Inventors
The CRIF Advantage
CRIF Patent Due Diligence Report facilitates the evaluation and the visibility of 90% of the intangible asset that the traditional credit process cannot reach—designed to provide accurate information about patents available around the world. Backed by big data and artificial intelligence, our advanced algorithms analyze and provide up-to-date patent asset status and precise evaluation of the firm’s patents from WIPO, EPO, and key Patent Offices in the US, Japan, China, Korea, Taiwan, India, and many others.
Looking for a patent due diligence report? Partner with CRIF India, one of India’s leading providers of Credit Information, Business Information, Analytics, Scoring, Credit Management, and Decisions Solutions.
The Patent Due Diligence Report from CRIF is designed to keep you on top of your innovation game by providing detailed information about patents via comprehensive checklists and evaluation processes. Click to explore our patent due diligence services.