We recently had a client who reached agreement with a seller to purchase an product line from another company. The seller agreed that the buyer would receive all intellectual property that went with the product line. The seller also said there was no intellectual property. The buyer asked us to determine whether there was any intellectual property.
We found 2 granted patents, 4 pending patent applications, and 8 trademarks, all relevant to the product line. After further discussions, the seller agreed to grant the necessary rights under all of the corresponding patents, patent applications, and trademarks.
Without those rights, the buyer would have been operating totally at the will of the seller for raw materials and rights to use the trademarks.