Risks in implementing the acquisition of software companies – caused by uncertain IP rights.

When purchasing a software company, purchasers must verify the IP rights over the software, databases, domain names, trademarks and insignia used, and the storage medium through which the software is provided (servers, cloud, etc.). The IP rights may be owned by a different company than the target company, and the purchaser risks acquiring a company having an incomplete product/service which cannot be sold after the implementation of the transaction, without the acquisition of additional rights.