IP Due Diligence

Summary

IP "due diligence" is the process of uncovering and understanding information about the status, value and risks associated with the transfer of IP assets as part of a business deal. Prior to conducting due diligence, the parties should consider entering into a confidentiality agreement or "NDA" (nondisclosure agreement), which protects the disclosure and potential misuse of sensitive, non-public information exchanged by one party (i.e., a unilateral agreement) or multiple parties (i.e., a mutual agreement). In addition to business sensitive documents, privileged material may also be shared during the deal negotiations. In this case, the disclosing party must understand that without the formation of a common or community interest between the involved parties, reduced to writing, the privilege can be destroyed when otherwise privileged information is shared with third parties.