This includes due diligence concerning the strength and quality of the intellectual property assets being acquired, including whether the seller in fact has unencumbered title to the intellectual property assets being sold or whether the purchaser is potentially buying into a patent infringement, trademark, copyright, trade secret or other intellectual property lawsuit. In addition to conducting thorough due diligence concerning intellectual property assets, the indemnification provisions of asset or stock purchase agreement must be drafted carefully to anticipate the potential for suits. In certain circumstances, placing a portion of the purchase price in escrow may also be appropriate until any uncertainties associated with the seller s right to the intellectual property are resolved. Understanding the basic types of intellectual property is critical to any strategic business planning or investment decisions related products or services involving technology or proprietary corporate know-how. Patents - Utility patents cover any new and useful process, machine or composition of matter.
Design patents cover any new, original and ornamental design for an article of manufacture.
Issuance of a United States patent gives the owner exclusive rights to the invention for a specific period of time in the United States. No other party can make, use or sell the claimed invention without permission of the patent owner. Patent applications can also be filed in foreign countries and licensed for use overseas. Patent protection is available for a computer program, if the program meets the above criteria. If a company is accused of patent infringement and it owns patents, it may be able to bargain with the other party by offering a cross licensing of technology.