Self-evidently, investors invest in order to seek a return on their capital. They want the business they invest in to be a financial success.
Intangible assets, such as intellectual property rights (“IP”) are often core to businesses, giving them a competitive edge and market opportunity.
However, unless they are properly understood, captured, and protected, shareholder value and anticipated future gains can be eroded and opportunities for growth lost.
Thus, before investing in a business, it is often important to know and understand the ‘health’ of its IP portfolio, whether its IP strategy is in line with the wider goals of the business and whether it is proportionately managing the risk of infringing competitors’ IP rights.
This typically involves:
Unless an investor conducts appropriate IP due diligence before investing in a business, pitfalls will not be identified, understood, nor (where possible) steps taken to address them. This could mean the investment made does not result in the anticipated return.
If you would like to find out more about how our Intellectual Property team can assist potential investors in conducting cost proportionate IP due diligence, please contact Carl Steele, Head of IP, or your usual contact at Ashfords.