Every life scientist practices due diligence. Whenever working with another group, acquiring the rights to a technology, or entering a round of financing, individuals take steps to make sure that interaction goes smoothly – the very premise underlying due diligence. When those interactions involve intellectual property (IP), the standard due diligence procedure is to execute nondisclosure agreements to protect the confidentiality of the information exchanged. But is this sufficient? If someone overhears intellectually protected information during a transaction, they can't "unlearn" what they now know about a competitor.
There are other unforeseen wrinkles that can further complicate the process. Unwary companies or labs may make missteps during IP due diligence that dissolve the cloak of protection for privileged attorney analyses and opinions on their IP, subjecting that work to discovery in lawsuits. Misunderstandings between parties as to the proper scope of due diligence can arise, ultimately threatening the deal. All ...
