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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.

Conclusion

Conducting DD of a merger in Czechia is a laborious &  cumbersome process & should, therefore, be preceded by consultations with legal experts. You can contact IQ Decision UK & get legal advice on concluding an M&A agreement in the EU by filling out the form below.