When deciding on conclusion of a transaction or acquisition of assets of a company or a business, potential investors interested in obtaining accurate and reliable information related to financial condition of a company to be purchased, its production capacity and available tangible and intangible assets.

This information is required in order to identify possible risks of failure to fulfill obligations, invalidation of a transaction, imposition of arrest or collection on property (exclusive) rights, call for responsibility and etc. Similar information may also be required during foundation of a joint venture or during reorganization/restructuring of a company.

Due diligence is one of the most common ways to obtain information on the current situation and quality of intellectual property (IP) of a company.

Unfortunately, very often enterprises do not:

• estimate potential of IP for providing opportunities for future company profits;
• have full information about what IP objects are involved in their production and existence of valid rights to them;
• take into account perception of individual designations in other countries (peculiarities of culture of other countries, peculiarities of sound and meanings of trademarks in other languages);
• evaluate the cost of IP.

IP objects often have their own material value, which is not lower and sometimes exceeds value of the tangible assets of a company. For example, IP can bring income to company through licensing, selling or commercializing products and services protected by IP rights, which can significantly increase market value of a company in the market and increase net income.

Bolotov and Partners professionals have all the necessary capabilities: many years of experience and practice in conducting due diligence, technical specialists and reliable partners in the field of evaluation of IP objects.

Due diligence of IP objects/rights shall help:

• increase competitiveness of a company;
• increase value and good-will of a company which is important to attract investors and financial institutions;
• to transform intangible assets into exclusive property rights, even for a limited period of time.

We offer following services related to conducting due diligence of a company:

• Identification of intellectual property objects;
• Verification of documents confirming the fact and existence of intellectual property rights in a company (or drafting and obtaining such documents in the name of a company) or documents confirming that a company obtained such rights in the result of a transfer from third parties;
• Conducting an audit of intellectual property;
• Analysis and identification of potential risks of infringement to intellectual property rights;
• Consultation and preparation of a report on current situation and sustainability of analyzed IP objects/rights for making a decision on the planned transaction.

In this section, information concerning the section Due Diligence is published.

Yuri Bolotov

Managing Partner

Questions relating to the section Other Services – Due Diligence can be forwarded to e-mail address: info@bolotovIP.com marked for Yuri Bolotov.