Stoel Rives attorney John Eustermann discussed biodiesel technology licensing issues with Ron Kotrba of Biodiesel Magazine's Weblog. In some cases, the technology license governing plant equipment may not be transferrable upon the sale of biodiesel plant assets.
Eustermann said project acquisitions implicate a number of technology licensing issues, including assignability provisions, technology optimization and upgrade limitations, ownership and rights, technology improvements, upgrades and modifications. "If you're buying assets, [you need to know] what representations the sellers are making, and what warranties are in place." Eustermann emphasized that due diligence is crucial in any deal negotiation: "Don't just walk around the plant and say, 'OK, it's running, let's go!' Look at the contractual assets and make sure there are no risks, or if there are risks, you know how to deal with them."
"So you bought a biodiesel plant … do you have license to use it?" was posted on March 9, 2011 in Biodiesel Magazine's Weblog.