DD of Technological M&A Deals in the Czech Republic

Planning on acquiring a business in the Czech Republic but don’t know where to start? Actually, it’s DD of M&A transactions in the Czech Republic that you should be considering first. So why not take a very good look at it?

Czech Republic: Performing DD of Technology M&A Transactions

Performing DD of technological M&A deals in Czechia involves verifying IP assets. This, in turn, means carrying out an indepth analysis of:

• all IP belonging to a target company;
• any IP used within three previous years, including licenses or other agreements authorizing utilization of the IP;
• 3rd parties’ IP, which might or might not be essential/useful for the business of a target company;
• violations of a target company’s IP rights by 3rd parties;
• claims of employees in relation to inventions made by them during their work for a target company;

Czech Republic: Settlement of IP Disputes

DD of technology assets usually includes a detailed analysis of:

• secondhand IT equipment, including information about its owners & licenses;
• software used, including software ownership rights & licenses;
• maintenance software or equipment;
• legitimacy of use of personal data.

Information Accessible to General Public

Undertaking DD of technology M&A deals in Czechia usually includes searching data in all kinds of public registers:

• real-estate register;
• register of criminal cases;
• trade license register;
• commercial register;
• insolvency register;
• central treasury register.

Also, concluding technological M&A transactions in Czechia includes checking additional IP & technology databases.

IP Protection in Czechia

As per local legislation, IP rights are understood to be:

• registered;
• unregistered. 

By submitting an application for the protection of IP rights in Czechia, applicants are spared the need to submit it again at a later date.

Those planning on setting up a business in Czechia should keep in mind measures for the protection of IP rights in the EU. 

DD of employees’ technology & IP includes reviewing:

• IP licenses held by a target company’s employees;
• rights of a target company’s personnel to transfer their IP rights to 3rd parties as per their labor agreements;
• labor agreements.

Czechia has no laws on new technologies. Thus, the country's Civil Code treats all modern technologies as assets.