1. what is intellectual property

Intellectual Property (Intellectual Property, shortIP) refers to the achievements created by people in the fields of science and technology, culture and art, as well as various exclusive rights related to them, which are recognized and protected by national laws. Intellectual property is an intangible asset, which can not only reflect the innovation ability and competitive advantage of enterprises, but also bring economic and social benefits to enterprises.

Classification of 2. intellectual property rights

According to different innovation achievements and protection methods, intellectual property rights can be divided into the following categories:

Patent rights (Patent): Refers to the exclusive right to use the invention-creation granted by the state to the inventor or his assignee within a certain period of time. Patents are divided into invention patents, utility model patents and design patents.

Trademark rights (Trademark): refers to the exclusive right to use words, graphics, letters, numbers, three-dimensional signs, color combinations or sounds used in goods or services that have the function of distinguishing the source of goods or services, and are approved and registered by the State Trademark Office.

Copyright (Copyright): Refers to the property rights and personal rights enjoyed by authors or other copyright owners in their literary, artistic or scientific works in accordance with the law. Copyright includes copyright property rights and copyright personality rights.

Trade Secrets (Trade Secret): Refers to technical information or business information that is not known to the public, can bring economic benefits to the legal holder, is practical, and has been kept confidential by the legal holder.

New varieties of plants (Plant Variety): Refers to the exclusive use right of plant varieties newly cultivated in the plant kingdom and meeting certain conditions after being examined and approved by the State Office for the Protection of New Plant Varieties.

Geographical indications (Geographical Indication): refers to the exclusive right to use a commodity with specific quality, reputation or other characteristics due to its specific geographical environment of origin, and with the name of origin as the symbol, after being approved and registered by the State Administration for Industry and Commerce.

Value Assessment of 3. Intellectual Property

As an intangible asset, the value of intellectual property is often difficult to measure by traditional accounting methods. Therefore, the value assessment of intellectual property rights needs to use professional methods and techniques, taking into account the legal status of intellectual property rights, technical level, market demand, economic benefits, risk factors and other factors. There are three main types of valuation methods for intellectual property:

Cost method (Cost Method): refers to the calculation of the value of intellectual property rights based on the cost of creation or substitution of intellectual property rights. This approach applies to those IPRs that have not yet been put to use or have not yet generated revenue, or those for which the market is not actively traded or for which comparable data are lacking.

Market law (Market Method): refers to the calculation of the value of intellectual property rights based on the market transaction price of intellectual property rights or similar intellectual property rights. This approach applies to intellectual property rights that are actively traded in the market or for which comparable data are available, or for which there is a high level of credibility and credibility.

The income approach (Income Method): refers to the calculation of the value of intellectual property rights based on the expected benefits or cost savings of intellectual property rights. This approach applies to those IPRs that are already in use or are about to be used and can bring benefits or cost savings, or those with high value-added potential and competitive advantages.

Protection and Utilization of 4. Intellectual Property

The protection and utilization of intellectual property rights is one of the important contents of investment due diligence, which is not only related to the core competitiveness and development prospects of the target enterprise, but also related to the return on investment and risk control of investors. When analyzing the protection and utilization of intellectual property rights, the following aspects need to be paid attention:

Registration and filing of intellectual property rights: Check whether the target enterprise applies for registration and filing of all kinds of intellectual property rights it owns or uses in a timely manner in accordance with the law, and obtain corresponding certificates or supporting documents to ensure that it has a legal and effective exclusive right to use intellectual property rights.

Licensing and transfer of intellectual property rights: Check whether the target enterprise has reasonably and legally licensed or transferred the various types of intellectual property rights it owns or uses in accordance with legal provisions and contractual agreements, and obtain corresponding licenses or transfer documents to ensure that it Charges reasonable and legal license fees or transfer fees for intellectual property rights.

Infringement and disputes of intellectual property rights: check whether the target enterprise has infringed the intellectual property rights of others or has been infringed by others, and obtain the corresponding infringement judgment or mediation statement and other relevant documents to ensure that it bears reasonable and legal compensation for intellectual property rights. Liability or obtain reasonable and legal compensation.

Management and confidentiality of intellectual property rights: check whether the target enterprise has established a sound and effective intellectual property management system and confidentiality measures, and obtain corresponding management norms or confidentiality agreements and other relevant documents to ensure that it effectively maintains and protects intellectual property rights.

5. Shangpu Consulting Service Customer Case

As one of the most leading and authoritative independent third-party research and investment and financing consulting institutions in China, Shangpu Consulting has rich experience and ability in intellectual property analysis. It has provided professional intellectual property analysis services for many well-known enterprises to help them make correct decisions in investment due diligence. The following are some examples of clients of Champ Consulting Services:

An internationally renowned semiconductor company invests in a due diligence project: The company intends to make a strategic investment in a leading domestic semiconductor design company and entrusts Champ Consulting to invest in due diligence. Shangpu Consulting conducted a comprehensive and in-depth analysis of the target company's intellectual property rights, including the registration, licensing, transfer, infringement, disputes, management and confidentiality of various intellectual property rights such as patents, trademarks, copyrights, and trade secrets. The company's intellectual property value and risks, and put forward corresponding suggestions and opinions. The project was successfully completed, providing customers with strong support and reference.

A well-known domestic medical device companyIPOProject: The company intends to be listed on the GEM and entrusts Champ Consulting to carry out the listing.IPOPreparation of the fund-raising feasibility study report. Shangpu Consulting conducted a detailed and detailed analysis of the company's intellectual property rights, including the registration, licensing, transfer, infringement, and disputes of various intellectual property rights such as patents, trademarks, and copyrights, and evaluated the company's intellectual property value and Contribution, and put forward corresponding improvement measures and suggestions. The project successfully passed the CSRC audit, for customers to realize the dream of listing.

M & A project of a well-known domestic new energy automobile company: the company plans to merge a leading foreign supplier of new energy automobile parts, and entrusts Shangpu consulting to prepare the feasibility study report of merger and acquisition. Shangpu Consulting conducted a systematic and comprehensive analysis of the target company's intellectual property rights, including the registration, licensing, transfer, infringement, and disputes of various intellectual property rights such as patents, trademarks, copyrights, and trade secrets, and evaluated the target company's intellectual property rights. Value and competitive advantage, and put forward corresponding merger strategies and plans. The project was successfully completed, achieving the goal of cross-border mergers and acquisitions for the client.

Conclusion

Intellectual property is one of the core assets of an enterprise, for investors, when making investment due diligence, it is necessary to conduct a comprehensive and in-depth analysis of the intellectual property rights of the target enterprise to ensure the correctness and rationality of investment decisions. This paper introduces the methods and steps of intellectual property analysis in investment due diligence from the aspects of definition, classification, value evaluation, protection and utilization of intellectual property rights, and shows the role and significance of intellectual property analysis in investment decision-making in the light of the specific cases of Shangpu consulting service customers. I hope this article can help and inspire investors.