IP Trading

IP trading in general refers to any means by which intellectual property (IP) rights are commercially dealt with. There are different forms of IP trading. For example:

• Assignment of IP rights from the seller (Assignor) to the buyer (Assignee). This can be done by way of an acquisition of the company which owns the IP instead of acquiring the IP itself directly. By acquiring the company through like companies merger or take over, the buyer effectively acquires the company’s IP.
• Transfer or licensing of IP created by a contractor (e.g. software engineer or designer) to the contractor’s customer

• Transfer or licensing of IP created by a contract research organisation to its customer

 

When there is IP trading, it is essential to have IP due diligence before the parties of the transaction enter into any binding assignment.  IP due diligence serves a number of purposes, which include:

• To ascertain the ownership, validity of IP, the scope of the IP which could be assigned, and whether the target IP is subject to any 3^rd party’s interest
• To ascertain the documentations in relation to the IP, whether there is valid assignment, licensing agreement, trade mark registration certificate, etc
• To conduct valuation of the target IP so as to determinate the consideration of the transaction

 

For legal advice or services on trademark or IP trading or IP assignment, please contact CHOW & CHEUNG, Hong Kong Solicitors & Notary Public. [Tel: +852 2856 3799   Email: cac@ccsn.hk]

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