A legal perspective on biotechnology patents in mergers and acquisitions transactions in the European Union and the United States

Abstract: This thesis addresses different aspects of the legal perspective on the patentability, valuation, and scope of biotech patents in the European Union and the United States when mergers & acquisitions transactions are in question. To facilitate mergers & acquisition of a biotechnology company a specific regulatory environment must be established, particularly what effects the most such transactions when the biotech company is in question. This thesis analyses existing peculiarities and similarities of the European Union’s and the United States’ regulations. Presented findings establish a legal perspective towards the patentability of biotechnology patents and its importance in mergers & acquisitions transactions. Traditionally, courts have used the scope of the application to limit a biotechnology patent that has an overly broad scope for protection. Defining the correct degree of patent scope gives rise to different problems. This in order affects the valuation of intellectual property rights in the biotech industry and might compromise the merger & acquisition transaction because intellectual property assets play the most important role. Unethical practices are also constantly argued. While there are numerous limitations on the value and scope of biotech patents between the European Union and the United States legal approaches, there are various ways in which the two can be harmonized to promote cross-border transactions. Until recently, for various intellectual property assets, numerous standardizations have been fostered with varying methods being implemented based on place and legislative formulation. This study examined potential gaps in patentability procedures, between the European Union and the United States, the assessment, and the determination of biotech patents in cross-border transactions. Based on the established regulatory environment and deeper analysis of that environment, the findings section concludes that legal perspective must be laid down to diagnostic tools, the existing difficulties in the patentability of biotechnology patents and patenting nature as a perspective between the European Union and the United States. A viewpoint to the flexibility of the subject matter, as well as, the importance of the due diligence process in biotechnology plays also an important role, and last but not least a viewpoint towards the distinct features of issuing patents in the European Union and the United States has been discussed.