Intellectual Property Insurance is vital if your entity owns any intellectual properties, be they Patent, Trademarks, Copyrights, or Designs. Intellectual properties can be your company’s greatest asset which is why Intellectual Property Insurance can be the difference between success and bankruptcy. That’s why we believe it’s vitally important for you to protect your Intellectual Properties. Patents, trademarks, copyrights, and other intellectual property can make you competitive, profitable and successful. Our Intellectual Property Insurance Policy covers the defense of intellectual property infringement claims, which can be catastrophic for any IP-centric business.
Intellectual Property Insurance Coverage Highlights Can Include
Intellectual Property Insurance can cover your Patents, Trademarks, Copyrights and IP infringement liability.
This insurance covers your defense of patent and other IP claims being brought against you, including legal costs, damages, settlements and counterclaims.
Contractual indemnities coverage
This vital coverage enables your business by allowing even smaller companies to agree and meet your contractual indemnities required by your customers.
Additional Intellectual Property Insurance Coverages Available.
Pursuit of infringers
Companies spend a great deal of time, energy and money developing their IP. Your investment should be protected and therefore the coverage for the costs associated with enforcing rights. If someone infringes a valid right then it has a huge monetary impact.
Loss of profit insurance coverage
Coverage for loss of profits can be critical for a small or medium sized business with only a single or a small handful of product lines. So, if you lose an IP case it may result in a penalty against you. Therefore, this policy can cover for your resulting loss of profits for up to 12 months.
Loss of IP right insurance coverage
Your investment in intellectual property costs a great deal. If your right is invalidated as a consequence of legal action, this policy can repay your investment. Therefore allowing your company to move onto the next project.
What is the Average Cost of Intellectual Property Insurance
Your Intellectual Property Insurance is much like most other insurance in that there is no flat rate. Insurance costs will vary based on your operation, the nature and quantity of your intellectual property, trademarks, copyrights, and patents. Furthermore, your revenue as well as any contracts you may have in place will also impact pricing. Intellectual property insurance is not necessarily inexpensive, but then, neither is an I.P. infringement lawsuit. So, if you are in the market for this insurance coverage, you will need to at minimum, budget at least $5,000.
The following classification are particularly sensitive to Intellectual Property Insurance needs
| Construction, including tools and machinery | Drug discovery in the pre-commercialization stage |
| General manufacturing, including components for non-consumer products and machinery | Software development, including computer games |
| Professional services – architects and engineers | Software applications development companies |
| Design Firms | Manufacturing of consumer products |
| The Oil and gas industry | The Fashion Design & Manufacturing |
| Mining and metals | Advertising & Marketing Firms |
| Business operation software | Medical Device Design & Manufacturing |
| Business and Technology Consultants | Food processing |
| Renewable energy operations | Augmented reality and virtual reality developers |
| Automotive Parts Manufacturers | Machine learning |
Intellectual Property Insurance primarily provides defense.
Defense is the principal component when defending your Intellectual property insurance claim. However, once it is determined that you have stolen an Intellectual property things change. At that point, it is a crime and all insurance bets, coverages, defense, settlements and judgements are off. However, you do need to keep in mind that defensing an Intellectual Property claim can be costly.
How expensive can an Intellectual Property Claim be1?
If you think it’s expensive tofight, you don’t even want to know how much it can cost tolose. Intellectual property awards have only continued to climb in recent years, with IP awards leading the charge. A few of the larger intellectual property infringement awards and settlements of recent years include the following:
| Honeywell v Litton | $1.2 billion |
| Polaroid v Kodak | $900 million |
| DCS Communications v General Instruments | $140 million |
| Fonar v General Electric | $128 million |
| Honeywell v Minolta | $128 million |
| Stac Electronics v Microsoft | $120 million |