June 9, 2017
Intellectual Property: M&A Liability Issues
This article from Scott & Scott’s Keli Swann reviews IP liability considerations in M&A transactions. Here’s an excerpt about the consequences of a purchaser’s decision to retain the seller’s information technology assets:
If the purchaser chooses to retain the IT assets, it assumes the responsibility of ensuring that all software complies with the relevant licensing agreement or the purchaser risks potential copyright infringement liability. There are a number of steps the purchaser should take to mitigate potential exposure, including conducting an internal audit of the new IT assets, evaluating any existing licenses, and determining whether any remediation is required in order to become compliant.
– John Jenkins