No matter if you are entering the patent due diligence data room from the buyer’s door or the seller’s—both parties should have specific strategic objectives related to what should and should not go inside the data room, and how any such content is presented or analyzed. Typically, sellers initially decide among varying levels of access to strategic and/or confidential documents to include, from contracts and financial statements to those reflecting chain of title and invention details. Buyers, though, should not be afraid to ask for more or to consider why certain documents may not be present. Populating and analyzing a data room during patent due diligence requires a mix of savvy strategy and common sense, all tempered and informed by the strategic business goals of both parties.

A data room is an essential fixture in every IP due diligence process. A data room is the virtual space that holds confidential and potentially privileged information that may need to be shared and/or communicated, generally by the seller to the buyer. In biotech or biopharma patent due diligence, the information can be very sensitive, such as details related to drug structure, function, formulations, clinical data, etc. What does and does not go inside can have critical implications for both sellers and buyers.

The Seller’s Door