Abstract
SummaryDue diligence in this article refers to the process of examining a business which enables a potential purchaser to satisfy himself that the vendor owns the title to the assets to be sold and to determine whether the price proposed is reasonable, having regard to the risks that the purchaser may assume in acquiring the business. This article examines attributes of legal mechanisms used to protect intellectual property (IP) which must be considered in the due diligence process. It concludes with suggestions on how to create a ‘culture of confidentiality’ within a company to ensure IP is adequately protected.
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