IP due diligence is the process by which the quality, validity, scope and status of any intellectual property rights can be determined in a commercial transaction. For instance, without conducting an IP due diligence review, it is not uncommon to find out after the purchase and sale of a business that the:
- domain name is in the name of an ex-employee or;
- business is being sued for trademark infringement for which the new owner is now responsible or;
- copyright, hence the ownership, in and to the purchased website belongs to someone else.