Legal Guidance For Freedom To Operate Opinions And IP Due Diligence Lawyers
Our attorneys at PV Law LLP counsel clients on issues related to freedom to operate (FTO) opinions.
Bringing new products to market in the United States can be fraught with challenges. Our attorneys have tremendous depth with a wide spectrum of patent issues and provide counsel to companies looking to enter the U.S. market.
This experience allows us to provide the knowledge and insight necessary to navigate the complex world of patent laws and practices.
Freedom To Operate Opinions
Our patent attorneys are experienced in performing the necessary elements for an FTO opinion. An FTO opinion permits an entity to assess whether a competitor’s patents may be viewed to cover a product the entity intends to bring to market.
We suggest this analysis be done as early as possible in the development process, in case the FTO analysis makes it necessary to make design changes to avoid the patent. This can assist with securing rights to commercial production and marketing of a product and reduce the likelihood of an infringement claim or, at the very least, set expectations properly.
An FTO analysis can also bring to light other opportunities for other patents or help determine if licensing is the most cost-effective resolution.
An FTO opinion can provide a realistic overview of the market and potential risks as well as opportunities. Our intellectual property lawyers can help provide the counsel needed to develop proper expectations for the landscape in which a product will arrive in the U.S.
What Is IP Due Diligence?
Due diligence is an important aspect of a transaction that involves the outright acquisition of intellectual property, whether the purchase includes a single patent, a group of patents or an entire patent portfolio.
In patent acquisitions, IP due diligence allows buyers to clearly understand what rights they are acquiring and what risks may accompany those assets. The process focuses on confirming ownership and identifying the legal status and potential issues with the transfer of ownership. Through this review, buyers can request the seller fix issues before the deal closes, include additional representations and warranties in the purchase agreement, or adjust the purchase price to account for additional risks or unknowns.. Buyers sometimes also want to understand the potential value of a purchase with an assessment of the likelihood the patents are being commercially practiced and the likelihood the patents can withstand validity challenges.
How Can Our Firm Help With Your IP Due Diligence Matter?
Our firm approaches IP due diligence with a litigation-focused mindset, evaluating patent assets the way they would be examined in a dispute or enforcement setting. This helps buyers gain a clearer picture of long-term value and potential exposure.
Our support may include:
- Chain of title and encumbrance review:Examining ownership history, assignments, licenses and security interests to confirm that patent rights are properly held by the seller and transferable.
- Validity and enforceability audit: Reviewing patents for potential validity challenges, enforceability concerns, and litigation risk that could affect future use or enforcement.
- Claim scope versus commercial reality: Assessing how patent claims align with real-world products and technologies to determine whether the assets provide meaningful commercial coverage.
- Risk adjustment valuation support: Helping buyers factor legal and enforcement risk into valuation decisions by identifying strengths, weaknesses and exposure points within the assets.
Our patent attorneys will examine the assets, review the terms of any transfer agreement, highlight any transfer issues and assist with the transfer. This ensures that our clients know what they are buying, enabling them to make an informed offer.