Patent Due Diligence for Investment in a Technology-Based Company

Intellectual property rights, especially patents, frequently form the foundation of a technology-based company. For example, patent rights can provide a means for entry into a marketplace by creating a barrier to competitors. As a result, a potential investor should conduct a thorough analysis of the intellectual property rights owned and utilized by the company, with particular emphasis on patent rights, as part of the investor's pre-investment due diligence. Such due diligence will enable the investor to assess the value of the business and the associated risks, and will increase the likelihood of a successful investment.