Licensing intellectual property and technology from the financially-troubled or startup company: Prebankruptcy strategies to minimize the risk in a licensee's intellectual property and technology investment

In today's new economy, intellectual property and technology industries are booming. As a result, companies and financial institutions increasingly ar e presented with new business and investment opportunities with high tech c ompanies. Although the potential return on such a business relationship or investment may be high, so also is the risk that the high tech company will experience financial difficulties. A company or financial institution cons idering a business relationship or investment with a high tech company thus should recognize this risk and take steps to protect its intellectual prop erty and technology investment. This Article summarizes the potential risks facing a company or financial institution doing business with a high tech company and suggests actions that may be taken to protect this intellectual property and technology investment.