Enforce your IP rights

Due Diligence and IP valuation

The value of IP is affected by a variety of factors, such as industrial sector, market size, prevailing competitive situation and company business strategy. We do not assign a specific pricetag to your IPR, but analyse the strengths and weaknesses of the protection. We also ensure that there are no discrepancies in registration or that any major obstacles to registration have not been missed.

IP Due Diligence

We conduct IP Due Diligence primarily to support management decision-making in a company that intends on making an acquisition. In corporate acquisitions and license negotiations an audit is beneficial to both parties: the buyer knows what they are buying and the seller what they are selling. We make an assessment of what the IP portfolio comprehends as well as the value and extent of a patent's protection and coverage.

We also conduct IP assessments for financiers. In an examination we also chart possible IP risks, thus providing the financier with a third-party assessment of the financed company's freedom to operate in relation to competitors and information on potential threats.

The scope within which IP Due Diligence is conducted can vary widely, according to how extensive the agreement in question is and how well the buyer knows the company, market and sector.

In a legal status report we determine what patents are held by the company and whether there are any patents pending; the applicable fees have been paid; the patent is valid; and the property rights have been properly transferred from the inventor to the company.

In addition to a basic assessment a patent portfolio can also be more comprehensively examined. The patent agent examines, for example, patent process events, which might provide valuable information as a basis for negotiations.

Statements on the scope of patent protection

A technical assessment concerning the scope of protection for an issued patent should also be included in patent Due Diligence. There is also good reason to determine competitors' dominant rights, which may limit access to rights of usufruct. This type of assessment is the only way to determine the risks of infringing upon the rights of third parties.

A technical assessment on the scope of protection for an issued patent can only be made by a patent expert, who has a sufficient level of technological expertise, is familiar with patent law and possesses practical experience in interpreting patent claims. Kolster offers this kind of experience to its clients in all technology sectors.

When is an IP valuation necessary?

There are situations in which an invention is valuable, but does not necessarily have a patent. Conversely, an invention can be virtually worthless, but have a very valuable patent. At what point in the lifecycle of a patent or invention should its value be determined?

There may even be grounds for patent valuation during the invention phase, prior to submitting the patent application, as during the application process the applicant will incur costs that they must be able to justify.

Because the value of the patent also changes during its lifecycle, updating its valuation may be necessary in a later phase. It is hardly worthwhile for a company to maintain or defend a worthless patent. One must also be able to distinguish between a new patent that represents state-of-the-art technology and an established patent.

The importance of patent value is further emphasised. Calculating, for example, damage claims in patent infringement cases or legal proceedings, articles of association, licensing and buying/selling situations, requires information on the value of the patent and other intellectual property rights.

In addition to mathematically calculating the financial value of the patent, one must also be able to specify the strength of the patent, its temporal and geographical scope and other factors specifying and limiting exclusive rights. The patent agent's expertise in valuation should be taken full advantage of.

Kolster's attorneys assist in assessing the patent portfolio as well as ensuring that our clients benefit from their inventions and can optimally apply their rights.