mARCH 2012 www.lawyer-monthly.com Legal Focus

As the firm's domestic and international reputation continues to grow, Adli Law's extensive litigation experience and record of success gains broader worldwide recognition.

Dr. Dariush Adli

compromising intellectual property rights, paying too much or receiving too little for a target company, or incurring unexpected liability after the merger or acquisition for infringing the intellectual property rights of third parties.

At a minimum, an audit should be made of the target company’s documents and practices related to intellectual property rights. This would include a complete identification and review of all patents, trademarks, copyrights, and trade secrets owned or licensed by the target. There should also be a review of any and all agreements with employees and third-parties. All legal opinions, IP investigations, judgments, liens, and pending or threatened litigation involving the target company should be reviewed. A freedom to operate investigation for a target’s operations or products may also be advisable.

Q Q

Are there many cases of IP-related litigation that arise within the M&A market.

At least in the technology sector much of the current M&A market is driven specifically by attempts to acquire valuable and strategic patent rights.

what due diligence should companies carry out?

It is not uncommon for a target company to be acquired primarily for its intellectual property rights with an intention to use such rights in pending or prospective litigation against competitors.

Q Q

Have you noticed a rise in IP-related cases as the world recovers from the financial downturn? will this continue?

Recent studies show that for the past twenty years there has been an average annual growth rate of approximately 5% in U.S. patent infringement actions filed. Patent litigation filings did experience a drop during the financial downturn but now seem to have picked back up again at a comparable annual growth rate. Growth is expected to continue.

Have there been any significant

legislative

changes recently? Do you see the need for any?

The passage in September 2011 of the Leahy-Smith America Invents Act represented the most substantial change to U.S. patent law in nearly 60 years. Some of the major changes include the move to a first-to-file patent grant system, new ways for businesses to mark their patented products, a new

post-grant review procedure, and a statutory provision for the expedited examination of patent applications. In the area of U.S. patents there continues to be a pressing need for a reduction in the backlog of pending patent applications. The America Invents Act contains provisions that are supposed to help with this. It will take some time to tell how effective such provisions are. Should they not be effective then further legislative action may be needed. LM

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Contact:

Dr. Dariush Adli 633 West Fifth Street Suite 6900

Los Angeles, CA 90071

Tel: 1-213-623-6546 Fax: 1-213-623-6554 Website: www.adlilaw.com