For deep-tech and IP-heavy companies, the intellectual property is the investment. Yet IP due diligence is often the most rushed part of a deal. This checklist gives you a structured way to assess a target's IP before you commit capital - and to spot the red flags early.
1. Confirm ownership
Start with the most basic - and most frequently broken - question: does the company actually own its IP? Check that inventors and contractors have assigned their rights, that no university or prior employer has a claim, and that the chain of title is clean from invention to current owner.
2. Assess portfolio strength
Counting patents tells you almost nothing. Look at quality and coverage:
- Are the claims broad and enforceable, or narrow and easy to design around?
- Does protection cover the company's actual commercial markets?
- How much term remains on the core assets?
- Are key patents still in force, with renewals paid?
3. Check freedom to operate
Owning patents is not the same as being free to sell your product. A target can hold strong IP and still infringe someone else's. Confirm there's a credible freedom-to-operate position and no known blocking patents in the relevant markets.
4. Watch for red flags
- Unassigned inventor rights or contractor disputes.
- Core patents nearing expiry with no pipeline behind them.
- Pending litigation or oppositions.
- Protection that doesn't match where revenue actually comes from.
Run it faster
Traditional IP due diligence can take weeks of counsel time. Advancii's IP due diligence tooling pulls ownership, term, coverage, and risk into one view so you can run a defensible first-pass review in hours, then bring counsel in for the deep dive. Start free and try it on your next deal.