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:
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.
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.