The deal market reached historic levels in recent years, with record-setting merger and acquisition activity in 2021. Markets have since cooled, with capital becoming harder to find. But any company preparing to sell within the next five years should consider the more common IP issues that arise during the legal due diligence process.

IP Ownership

Patent applications are often filed at the last minute. Priority considerations force the application to be filed expeditiously to avoid statutory bars or catastrophic public disclosure issues. But filing too quickly—or in the wrong country—may cause the eventual patent to be invalid for failure to obtain a foreign filing license.

What is a Foreign Filing

VirnetX is a classic example of an NPE that does not qualify as a “patent troll.” How can you tell? Patent trolls leverage the litigation system to negotiate settlements for less than the cost of defending against a lawsuit. VirnetX, on the other hand, licenses its patents for eight and sometimes nine figures. Patent trolls