Delhi HCSupreme CourtNCLTNCLATCCIDRTRERADPDP 2023

Intellectual Property Law

IP Due Diligence for M&A & Investments

Intellectual property due diligence for M&A transactions, PE/VC investments, and technology acquisitions — ownership verification, encumbrance review, and risk mapping.

Overview

Intellectual property is frequently the primary value driver in technology acquisitions, brand-led consumer deals, and pharmaceutical transactions — yet IP due diligence is the area most commonly under-resourced in Indian M&A practice. A target company's patent portfolio may include rights owned by founders personally rather than the company, licensed-in technology with change-of-control restrictions, or registrations that are vulnerable to third-party cancellation. Corpus Juris Legal conducts thorough IP due diligence for acquirers, investors, and target companies preparing for transactions. Our review covers the full IP asset inventory — patents, trademarks, copyrights, designs, domain names, trade secrets, and software — across ownership, encumbrances, validity, enforceability, and third-party challenges. We identify change-of-control provisions in IP licences, employee invention assignment gaps, open source software licence compliance issues, and regulatory IP obligations under sector-specific frameworks. Due diligence outputs are structured as risk-rated reports with clear transaction implications — not exhaustive registers that leave the client to determine what matters. For outbound transactions where an Indian company is acquiring international IP, we coordinate with local counsel to cover non-Indian registrations.

Key Service Components

  • IP asset inventory compilation — patents, trademarks, copyrights, designs, domains
  • Ownership chain verification and assignment gap identification
  • IP licence review — scope, exclusivity, sublicence rights, change-of-control provisions
  • Employee IP assignment and contractor IP ownership audit
  • Open source software component audit and licence compliance review
  • Patent validity and third-party challenge risk assessment
  • Trademark registration status and opposition/cancellation risk review
  • Trade secret protection audit — confidentiality agreements and access controls
  • Domain name portfolio audit and cybersquatting risk identification
  • IP due diligence report — risk-rated with transaction implications

Why This Matters for Your Business

Discovering post-closing that a target's core technology is licensed rather than owned, or that a key patent is unassigned from a departed founder, typically results in indemnity claims, valuation adjustments, and in serious cases, litigation that nullifies the commercial rationale for the deal.

Our Approach

Our IP due diligence reports are designed to be useful — every identified risk is rated, every red flag comes with a recommended mitigation or contractual protection, and the executive summary is written for the investment committee, not the legal file. We coordinate IP findings with the broader M&A legal due diligence to ensure risks are presented in transaction context.