Chapter 9 - Information technology and e-commerce: issues of due diligence, risk management and corporate governance

Abstract

Technology due diligence is about assessing the quality of technology assets and any attendant risks that an acquirer would assume in acquiring such assets. In this spectrum of risks, legal risk exposures probably rank among the top concerns of senior management. In the era of Internet-based business, one of the key assets of corporations is its intellectual asset. Intellectual assets cover those generic cluster of intangible assets which, when narrowly defined within a precise legal context, emerge as rights which are protected or can be protected by law. Such intellectual property rights typically include patents, copyrights, trademarks, design, and trade secrets. They are often intangible and come in the form of technology or know-how that can be software or hardware driven, or simply business processes driven by technology. In an e-commerce environment, the survival of a business should include an analysis of contractual obligations and liabilities. By examining the legal issues and understanding its contractual duties and rights, a business will be better place to ensure that valuable legal relationships are not put at risk.