Patent Litigation Results in Forced Acquisition
Sold to competitor for 1/3 of value. $100M loss to investors.
The Situation
- An award-winning hardware company had never analyzed its intangible asset risk or developed intangible asset risk mitigation strategy
- VC firms invested in the Company, but without undertaking intangible asset due diligence
- Law firm signed off a supply agreement for the company, which indemnified a Fortune 100 customer for IP infringement
The Client
$100M+ Electronics Company
Outcome
- Offshore competitor sued customer, who called on indemnity.
- Competitor “we will sue you out of existence or acquire you.”
Result
Sold to competitor for 1/3 of value. $100M loss to investors.