13/08/2026
| WHY INTELLECTUAL PROPERTY DUE DILIGENCE MATTERS BEFORE A BUSINESS DEAL |
When a business is being acquired, invested in, merged, or entering into a major commercial partnership, financial records are not the only assets that require careful review. Intellectual property can be equally important.
A company’s trademarks, copyrights, patents, trade secrets, software, domain names, licences, and other intellectual property may represent significant commercial value. However, the existence of an intellectual property asset does not necessarily mean that the business legally owns or can freely use it.
Intellectual property due diligence helps identify what intellectual property a business owns and uses, who owns those rights, whether the rights are properly documented, and whether there are any existing restrictions, licences, disputes, or potential infringement risks.
For example, a business may have invested heavily in developing software, branding, content, or technology without properly documenting ownership or obtaining appropriate assignments from employees, contractors, or third parties. Such issues can affect the value of the business and may become significant during an acquisition or investment.
According to the World Intellectual Property Organization (WIPO), reviewing intellectual property assets can help businesses identify opportunities, manage risks, attract investors, and maximise the commercial value of their intellectual property.
Before entering into a significant business transaction, conducting appropriate intellectual property due diligence can therefore help identify hidden risks, protect the value of the transaction, and support better commercial decision making.
Source: World Intellectual Property Organization (WIPO), Why Intellectual Property is Essential for your Business.
Read more: https://www.wipo.int/en/web/business
Kind regards,
Asif Sultan Bhuiyan
Barrister-at-Law, Lincoln’s Inn
Advocate, Supreme Court of Bangladesh
Find out how an understanding of IP can help your business become more competitive.