An intellectual property auction differs from a traditional auction in that it focuses solely on intangible assets, such as trademarks and copyrights. In other words, it is a comprehensive, streamlined approach to buying and selling intellectual property rights. These events have grown in popularity with the rise in relevancy and criticalness intellectual property has in the modern business landscape. Nonetheless, please read on to discover more about an intellectual property auction and how a seasoned Essex County, New Jersey intellectual property lawyer at the Ingber Law Firm can help you prepare to participate in one.
How does an intellectual property auction work?
An intellectual property auction typically goes through the same steps as a traditional auction. The only contrast may be how the seller transfers rights over to the buyer, given that it is an intangible asset. Without further ado, the auction process goes as follows:
- Interested buyers may read detailed descriptions and legal statuses of the intangible assets before the auction.
- Interested buyers may need to register for an in-person or online auction so bids can be tracked easily when the time comes.
- In an open auction, interested buyers may bid against each other and drive up the price, starting from a minimum bid amount.
- In a sealed auction, interested buyers may privately disclose their bid by a certain deadline, without knowing what others have offered.
- The interested buyer who offered the highest bid amount may undergo a legal process to get the intellectual property rights transferred over to them.
What should I know before participating in an intellectual property auction?
An intellectual property auction may benefit sellers because it allows them to turn their dormant trademarks, copyrights, etc. into liquid assets. On the other hand, it may also help buyers by letting them purchase valuable pieces of intellectual property that would have otherwise been expensive to create from scratch. These perks may make participating in an auction worth it, so long as buyers and sellers carry themselves accordingly.
That is, buyers must do their due diligence in considering their piece of intellectual property’s brand strength, market potential, competition, etc. when assigning it a value. In turn, sellers must do their due diligence in inspecting whether the piece of intellectual property would be valuable to their business given the timing, the current market conditions, etc. All the while, both buyers and sellers must work to ensure they remain legally compliant when transferring ownership rights. This is why it is almost always recommended to retain a legal representative before signing up for an intellectual property auction.
With that being said, contact a competent Essex County, New Jersey intellectual property lawyer to gain the emotional and legal support you require during this pivotal time. Our team at the Ingber Law Firm looks forward to helping you.
