Intellectual Property
IP (Intellectual Property) would add value to an online business. IP could be found:
1) in the business branding e.g. trademarks
2) in creative works the business provides, for example videos, tips, blogs or manuals.
Buyer of an online business should check and discuss with the seller of the business to see if the IP forms part of the sale and how the IP could be assigned from the seller to the buyer, e.g. by including the same in the Sale of Business Agreement.
Social Media
The ownership of social media pages like Facebook, Twitter or LinkedIn, Facebook or Twitter may add value to the online business and by having existing pages transferred to the buyer, the buyer may be able to build on an already existing network of fans.
Domain name
The domain name of an online business would also affect the value of the business. Buyer shall check whether the domain name is transferrable as soon as the new owner begins operating and how this transfer is going to take place to avoid any disputes or issues that may arise at a later stage, e.g. 3rd party’s interest and right in the domain name.
Software
If there is a software used to run the online business, the buyer will need to check with the seller on the ownership of the software or whether the use of the software is by way of a licence.
The buyer will need to be ensured the use of the software would not infringe a 3rd party’s intellectual property. The assignment or transfer of licence of the software could be dealt with in the Sale of Business Agreement.
For E-commerce or online business legal services, please contact Chow & Cheung, Hong Kong Solicitors & Notary Public (Email: cac@ccsn.hk).
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