Trademark Warranties in M&A Transaction and Proper Due Diligence
David Ehrlich, a member of the New York law firm of Fross Zelnick Lehrman and Zissu, P.C., focuses on trademark work for major companies in many industries, including due diligence and counseling in M&A transactions.
The most valuable asset of an acquired company in a merger or acquisition may be its brands, that is, its word trademarks and non-word logo trademarks. Trademark assets, however, are very unusual types of property – fragile, hard to inventory fully, and subject to many problems that can limit their scope and value. This article will discuss how some typical types of trademark warranties in merger and acquisition (M&A) transactions should be fine-tuned to prevent serious problems and costly surprises.