When valuating corporate assets during corporate acquisition, the patent intellectual property assets should not be ignored. A patent portfolio may prove to be a revenue source by generating licensing fees, or become money-making if patent infringement is proven for monetary damages. Similarly, a patent may be a stand alone asset that another entity seeks to purchase for freedom to practice or other reasons.
Due diligence should be performed to analyze a patent prior to patent acquisition, so that the potential purchaser knows more about the asset that she is acquiring. Due diligence investigations may reveal patent validity problems, patent enforceability problems, or patent prosecution events that impact patent claim scope, which in turn may impact patent infringement. Any of these potential patent pitfalls could impact a patent’s worth. Accordingly, while patents may be valuable assets, a due diligence investigation should be performed prior to acquisition to ascertain whether an asset is truly being gained.
If you have a patent issue, or wish to register a patent, you may contact one of our patent attorneys for a free evaluation or call 866.936.7447 (International Toll Free).