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Protecting intellectual property is critical for tech industry business development

Intellectual property can be a major concern for entrepreneurs and inventors in Texas and across the country. This is especially true for anyone developing software or other tech startups, as the technology industry is driven by the value of intellectual property. Well-known disputes over copyrights, trademarks, patents and other IP issues have resulted in long-running business litigation involving major players in the industry. Due to the high value of tech IP, handling the transfer of copyrights and patents as well as assessing their value can be some of the most critical aspects for evaluating a potential merger or acquisition.

When considering an investment or acquisition of a startup, a thorough review of your company's own intellectual property as well as that of any potential partner can be particularly critical. It is important that no gaps in ownership are left that could lead to later disputes, especially after a buyout or merger has driven up the value of the IP involved. Business litigation involving intellectual property has become a hallmark of the modern tech industry as major players like Apple, Samsung and Microsoft have battled with each other over copyrights, patents and trade secrets.

Beyond the traditional mechanisms for business valuation that include revenues and market reach, tech startups are often valued for the potential of their intellectual property. This means that dealing with any licenses, third-party agreements or other IP issues can be particularly critical in concluding or passing on a deal in this sector.

For businesses with an eye on potential acquisitions, venture capital investments and other opportunities for significant gain in the industry, dealing accurately with intellectual property can be a major step in preparing for the future of a business. A business and commercial lawyer can provide counsel on handling IP matters correctly, and can work to ensure that relevant intellectual property is secure and well-documented.

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