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In a recent article on BloombergLaw.com titled “
TikTok Forced Sale Bid Embroils ByteDance’s Vast Patent
Trove,” the spotlight is on ByteDance’s formidable
patent portfolio, which poses a significant challenge to any
mandated sale of TikTok. With over 900 US patents covering pivotal
technologies, the divestment process entails navigating legal
intricacies and financial considerations, particularly given the
global reach of ByteDance’s patents.
Although a U.S. bill stipulates TikTok’s sale within 180
days, ByteDance is poised to explore all legal avenues before
considering divestment. This stance underscores apprehensions
regarding the tight timeline and potential investor pressures
amidst geopolitical tensions.
“‘In most spin-offs, both the parent company and
subsidiary want the other to be successful,’ said Dickinson
Wright PLLC Partner
Jomy Methipara. ‘But the divestiture could become more
difficult if there are internal battles over which business should
get what IP,’ he said.”
The uncertainty surrounding the forced divestiture extends to
the fate of ByteDance’s intellectual property, raising
questions about whether selling off IP rights or granting exclusive
licenses would effectively address national security concerns.
As Methipara further notes, “A potential buyer would likely
prefer outright ownership, yet an exclusive license with
enforcement and sublicensing rights could also suffice.”
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