Acquire Side Issues (4) IP Warranty

• Probably won't get “standard IP warranties and indemnities” - eg copyright holding

• Possible threat from patents (probably still there under welfare model)

• Compare to similar closed source COTS warranties - often only mandatory TPA

• Closed source Vendors now seek to:

  • limit IP warranty to price paid depreciated over x years
  • exclude patent warranties

• Requires due diligence and risk assessment at acquisition stage.