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IP Due Diligence & Audits

Intellectual Property (IP) forms a critical part of a company’s valuation, particularly in technology-driven, media, and startup-intensive sectors. Whether you’re preparing for a merger, acquisition, funding round, or licensing deal, a comprehensive IP due diligence is essential to assess the validity, ownership, enforceability, and commercial value of your IP assets.

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At its core, IP due diligence in India is a legal and strategic review of intellectual property portfolios — including trademarks, patents, copyrights, domain names, and trade secrets — to identify risks, gaps, and opportunities for better asset management.

​What is IP Due Diligence?

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IP due diligence is a process of systematically auditing a company’s intellectual property to:

  • Verify ownership and chain of title

  • Ensure registrability and enforceability

  • Detect infringement risks or third-party claims

  • Evaluate licensing terms, usage rights, and revenue streams

  • Identify lapsing or mismanaged IP assets

  • Review compliance with IP-related contractual obligations

 

This exercise is particularly relevant in transactions such as M&A, fundraising, technology transfers, and licensing deals.

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Scope of an IP Audit in India​

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An IP audit may be triggered by:

  • Pre-investment due diligence by VCs or private equity firms

  • Internal review by a company before product launch or branding overhaul

  • Compliance checks prior to foreign filings under Madrid Protocol or PCT

  • Technology licensing or joint ventures involving patented assets

  • Sale, acquisition, or merger of a company with IP-heavy operations

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Key Areas Covered in an IP Due Diligence Report

 

Trademarks

  • Registration status and territorial coverage

  • Infringement risk analysis

  • Pending litigation, opposition or rectification proceedings

  • Assignment history and brand usage consistency

 

Patents

  • Patentability assessment and claim analysis

  • Renewal status and term validity

  • Pending examinations or litigations

  • Compliance with working statements and disclosure obligations

 

Copyrights

  • Ownership verification of original content, software, or creative works

  • Licensing agreements, assignments, and royalty structures

  • Risk of plagiarism or unauthorized use

  • Third party claims and pending litigations

  • Digital content IP integrity (esp. in SaaS and media sectors)

 

Trade Secrets & Confidential Information

  • Protection through NDAs and internal policies

  • Misappropriation risks

  • Documentation of proprietary algorithms, source codes, or know-how

 

Domain Names & Digital IP

  • Domain registration consistency with brand strategy

  • Cybersquatting or typo-squatting risks

  • Alignment between digital assets and IP registrations

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Why IP Due Diligence Matters

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  • Startups & Founders: Establish IP clarity before pitching to investors

  • Investors: Validate target company’s IP position and value

  • Enterprises: Ensure compliance and avoid legal disputes during acquisitions

  • Exporters & Global Brands: Avoid IP conflicts in foreign jurisdictions

  • Licensors & Franchisors: Structure enforceable and profitable agreements

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Relevant Laws and Guidelines

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  • Trade Marks Act, 1999

  • Patents Act, 1970

  • Copyright Act, 1957

  • Designs Act, 2000

  • Information Technology Act, 2000

  • WIPO & Madrid Protocol Procedures

  • Sector-specific IP policies & startup frameworks (DPIIT recognition)

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