While discussing the offshoring of Intellectual Property and its pitfalls the other day, it was recommended that IP due diligence and risk assessment should be employed to offset these dangers, safeguard its intellectual property as well as to identify the functions that should or should not be outsourced.
So, what does due diligence include? It may include the following:
• Identifying and documenting all of the Intellectual Property assets connected to the task to be outsourced
• Identifying which areas are of critical importance to your business

• Carefully assessing business knowledge and determining whether moving it outside the company or offshoring it will, in any way, prove detrimental to company practices
• Determining ownership rights in the recognized Intellectual Property
• Appraising third-party or jointly-owned Intellectual Property carefully
• Identifying all presented or suspected violations of contracts, infringements, revelations of trade secrets and of any confidential information
• The definition of expiration, termination or exit clauses of arrangement
• Assessments of up to how far Intellectual Property will be protected in the particular foreign country
• Determining enforcement and jurisdiction (means of resolving disputes, laws that are applicable and how far they can be enforced)
• Determining other responsibilities related to Intellectual Property as and where appropriate, such as upgrades to the Intellectual Property, continuing maintenance and disbursement of transfer fees; product accountability and the like.

After conducting due diligence, the firm can then assess the potential of the outsourcing partner. The outcome of these evaluations can then be used to negotiate outsourcing agreements which will provide for any Intellectual Property related issues that may crop up.