Navigating Cross-Border IP Challenges in M&A Transactions

As artificial intelligence (AI) and technology continue to transform global industries, intellectual property (IP) has emerged as a pivotal asset in mergers and acquisitions (M&A). The complexities of acquiring IP rights, particularly in cross-border deals, necessitate a thorough understanding of ownership and legal ramifications. This article explores the intricacies of IP in M&A, with insights from leading experts and industry reports.

**Background on IP in M&A** The significance of IP in M&A transactions cannot be overstated. According to a report from the World Intellectual Property Organization (WIPO) published in 2022, IP assets can account for up to 80% of a company's market value. Therefore, ensuring the proper acquisition of these assets during M&A is crucial for buyers. However, as Jason Saltzman, Partner and National Lead of the M&A group at Dentons, points out, “The challenge often lies in the clarity of the chain of title, especially when dealing with cross-border transactions.”

**Current Landscape of Cross-Border IP Transactions** In July 2025, Dentons released an episode of their M&A podcast featuring experts Kristal Allen and Bob Tarantino, who discussed the hurdles faced when acquiring IP in cross-border M&A deals. They emphasized the importance of conducting thorough due diligence to identify any potential issues regarding third-party ownership and existing licenses. “It is imperative for buyers to understand not only what IP they are acquiring but also the potential liabilities that come with it,” Allen stated.

The complexities of IP ownership are compounded by varying international laws and regulations. For instance, in many jurisdictions, the transfer of IP rights requires specific legal documentation, which can differ significantly from country to country. This variation can lead to misunderstandings and disputes post-acquisition. According to a 2023 study published in the *Journal of International Business Studies*, companies involved in cross-border M&A often encounter delays of up to six months due to IP-related legal challenges.

**Expert Opinions on Best Practices** Experts recommend adopting a proactive approach to managing IP risks in M&A. Dr. Emily Thompson, a Professor of Law at Yale University, advises, “Engaging local legal experts familiar with the jurisdiction's IP laws can mitigate risks effectively.” Furthermore, the 2022 report by the Deloitte Advisory Group highlighted that firms that prioritize IP due diligence have a 30% higher success rate in M&A integration processes.

Moreover, robust post-closing strategies are essential. Bob Tarantino notes that “negotiating clear post-closing rights and responsibilities concerning IP can prevent future litigation.” The involvement of IP attorneys from the onset of the transaction is critical in ensuring that all parties understand their rights and obligations.

**Implications for Future Transactions** As AI and technology continue to shape the future of business, the importance of clear IP ownership in M&A transactions will only grow. Organizations must adapt their strategies to these evolving landscapes. The integration of AI technologies into business models raises new questions about IP ownership, as innovations may generate unforeseen complications in ownership rights.

In conclusion, navigating the complexities of IP in M&A transactions, particularly across borders, requires diligence, expert guidance, and a proactive approach. As the market for technology-driven M&A deals expands, companies must ensure they are equipped to handle these challenges effectively to safeguard their investments and drive growth.