Enhance investor confidence with a robust intangible asset portfolio

An IP due diligence exercise is an assessment of the intellectual property rights which a company has developed, owns or licenses from another party, and the impact these assets have on the business. In this context, typically an IP due diligence process will involve:

• Analysis of the chain of ownership of the intellectual property rights and any related encumbrances or liens against the IP assets
• Assessment of the validity and enforceability of the assets, and their relevance to the business using the assets
• Review of additional and adjacent IP rights, often related to registered IP rights, such as know-how and copyright
• Current use of the IP assets in licensing agreements and any contractual obligations relating to the IP assets
• Involvement of the IP assets in any litigation or any ongoing observations against the IP assets

As part of our services we assist clients by reviewing their licence agreements and other contracts. We have significant experience in both drafting and executing contracts, and in providing contracts consultancy. We highlight potentially problematic issues in client agreements, then suggest ways to resolve such issues. These may relate to the terms of the licence, royalties, duration or technical and geographical scope of the portfolio being licensed. Our focus is on the commercial implications of the contract. In all cases, we flag these issues and draft text as appropriate.

As part of our valuation process and in licence discussions, we regularly review royalty rates across specific industries and specific asset classes. We have access to extensive proprietary royalty rate databases and with this we can provide you with suitable royalty rate benchmarks based on:

• Different licence/agreement conditions or unit types
• Different asset types (patents, trade marks, know-how, etc.)
• Different industries and sectors

As part of our work with clients we frequently review company business plans and financial projections. We do this to gain an understanding of how the business is performing, how it will meet its projections and the importance of its IP assets in meeting those projections. As such, we are perfectly placed to assist clients in developing their business plans and ensuring that they have a clearly laid out plan detailing the business proposition, plans for growth and revenue generation, and the relevance of their intangible assets in delivering these revenues.