IPR Due Diligence in Mergers and Acquisitions: Legal Challenges and Commercial Significance

Intellectual Property Rights (IPR) due diligence has become a fundamental component of mergers and acquisitions (M&A) in the modern knowledge-based economy, where intangible assets frequently outweigh physical assets in determining corporate value. This paper examines the legal and commercial significance of IPR due diligence by analysing the assessment of patents, trademarks, copyrights, trade secrets, software, and digital assets during corporate transactions. It highlights the importance of verifying ownership, validity, enforceability, licensing arrangements, and potential infringement risks to ensure informed investment decisions and minimise post-acquisition disputes. The study further discusses emerging challenges arising from artificial intelligence, Software-as-a-Service (SaaS) platforms, cross-border transactions, cybersecurity, and data ownership. Through an examination of landmark judicial decisions and contemporary industry practices, the paper emphasises the need for comprehensive due diligence, stronger contractual safeguards, and specialised legal expertise. It concludes that robust IPR due diligence is indispensable for protecting innovation, enhancing business valuation, facilitating successful transactions, and ensuring long-term commercial sustainability.