IP Due Diligence Policy Example – Intellectual Property (IP) Policies

IP Due Diligence Policy Sample

In this article, we’ll look at the key elements that make up an example IP Due Diligence Policy. We’ve included some starter/boilerplate information to help you get started writing this policy for your company. If you’re looking for help in setting up your policies & procedures or employee manual/handbook, our team can assist.

IP Due Diligence Policy Template

The following are the main elements that should be included in your IP Due Diligence Policy:

1. Title Page

• Policy Title: IP Due Diligence Policy
• Company Name: The name of the organization implementing the policy.
• Policy Number (if applicable): For easy reference within the company’s policy structure.
• Version Control: Date of creation, last review, and version number.
• Effective Date: The date the policy becomes operational.
• Approval Authority: Name and title of the individual who approved the policy.

2. Purpose/Objective

• A brief statement explaining why the IP Due Diligence Policy exists. This section outlines the policy’s purpose in relation to the company’s goals, regulatory requirements, or ethical standards.
• Describe what problem or issue the policy addresses.
• Example Purpose/Objective:

The IP Due Diligence Policy aims to ensure thorough evaluation and assessment of intellectual property assets during mergers, acquisitions, or licensing negotiations. It provides a structured approach to identify potential risks, verify ownership, and assess the value and validity of IP assets involved in transactions. By implementing these procedures, the policy seeks to protect the interests of the parties involved, facilitate informed decision-making, and enhance the strategic value of IP portfolios. This policy is crucial for minimizing legal and financial risks and ensuring compliance with relevant IP laws and regulations

3. Scope

• A description of who the IP Due Diligence Policy applies to (e.g., employees, contractors, vendors).
• Specify any exceptions to the policy.
• Explain departments or roles affected, if necessary.
• Example Scope:

This policy outlines the procedures for conducting intellectual property (IP) due diligence in the context of mergers, acquisitions, or licensing negotiations. It applies to all relevant transactions where IP assets are involved, ensuring thorough evaluation and assessment of IP rights, risks, and opportunities. The policy is designed to protect the interests of the organization by identifying potential IP issues and liabilities early in the transaction process. It mandates a systematic approach to reviewing IP portfolios, agreements, and compliance with applicable laws and regulations, thereby facilitating informed decision-making and strategic planning

4. Definitions

• Clarify any key terms or jargon used within the IP Due Diligence Policy to ensure understanding.
• Avoid assumptions about familiarity with industry-specific terminology.
• Example Definitions:

The IP Due Diligence Policy outlines key terms for conducting intellectual property due diligence in mergers, acquisitions, or licensing negotiations. “IP” refers to patents, trademarks, copyrights, trade secrets, and other proprietary rights. “Due Diligence” involves assessing the validity, ownership, and potential risks associated with IP assets. “Mergers and Acquisitions” pertain to corporate transactions where companies combine or transfer ownership. “Licensing Negotiations” involve discussions to grant IP usage rights. The policy ensures thorough evaluation to mitigate risks and protect interests in IP-related transactions

5. Policy Statement

• A detailed outline of the IP Due Diligence Policy itself, including all rules, expectations, and standards.
• It should be direct and clear so that it leaves no ambiguity about the company’s position or requirements.

6. Procedures

• Step-by-step instructions on how to implement or comply with the IP Due Diligence Policy.
• Include any forms, tools, or systems that employees must use.
• Describe the responsibilities of different roles in ensuring adherence to the policy.
• Example Procedures:

The IP Due Diligence Policy outlines steps for evaluating intellectual property during mergers, acquisitions, or licensing talks. It mandates identifying and assessing IP assets, verifying ownership and rights, and checking for any encumbrances or disputes. The policy requires a thorough review of IP portfolios, including patents, trademarks, copyrights, and trade secrets. It also involves analyzing IP agreements, licenses, and any potential risks or liabilities. The goal is to ensure informed decision-making and protect the company’s interests in transactions involving intellectual property

7. Roles and Responsibilities

• List the roles responsible for enforcing or overseeing the IP Due Diligence Policy (e.g., managers, HR).
• Define who is accountable for reporting, monitoring, and updating the policy as needed.
• Example Roles and Responsibilities:

The IP Due Diligence Policy outlines the roles and responsibilities for conducting thorough intellectual property evaluations during mergers, acquisitions, or licensing negotiations. It mandates that legal and business teams collaborate to assess IP assets, identify potential risks, and ensure compliance with relevant laws. The policy requires detailed documentation of IP rights, ownership, and any existing disputes. It also involves evaluating the impact of IP on the transaction’s value and advising stakeholders on strategic decisions. Regular training and updates on IP laws are essential to maintain effective due diligence practices

8. Compliance and Disciplinary Measures

• Outline how compliance will be monitored or enforced.
• Describe any consequences or disciplinary actions for failing to follow the policy, including the escalation process.

9. References and Related Documents

• Include links or references to any laws, regulations, or company guidelines that support the IP Due Diligence Policy.
• Reference related company policies that connect or overlap with the document.

10. Review and Revision History

• State the review cycle (e.g., annually, biannually) and who is responsible for reviewing the IP Due Diligence Policy.
• A history section that lists all revisions made to the document, including dates and reasons for changes.

11. Approval Signatures

• Signature lines for key decision-makers who have authorized the policy (CEO, department head, HR manager).

12. Appendices or Attachments (if needed)

• Additional information, FAQs, or case examples to provide more context or clarify how the IP Due Diligence Policy applies in specific situations.
• Any relevant forms or templates employees need to complete.