Intellectual Property Insurance
The proper way to view insurance for intellectual property is to compare it with the insurance you take out for physical property such as your home, business or automobile. Your intellectual property is simply another form of property that might need protecting by insurance.
Internet commerce is based on the ingenuity and development of new processes and applications. Many new companies compete to be the first to develop and sell new products and ideas.A competitor could financially wreck your company if you do not have the funds to hire an attorney and pay the cost of all the legal fees associated with defending your right to a patent or trademark. An Intellectual Property policy will pay the costs to defend you if someone tries to claim the rights to the same business model, process, or application.
Among the principal types of Intellectual Property Insurance (IPI) are:
Abatement (Enforcement) Coverage
Available for intellectual property (patents, trademarks, and/or copyrights). The policies cover litigation expenses incurred in enforcing the insured intellectual property (IP) against infringers up to the policy limit.
Infringement Defense Cost Reimbursement Coverage
Reimburses you for your legal expenses when you must defend yourself against intellectual property (IP) infringement lawsuits.
Governments are recognizing the evolving nature of intellectual property and allowing patents to be filed on intangibles such as software products, or more tangible yet developing areas such as biotechnology. The smaller companies in these arenas will benefit from Patent Infringement Insurance as they do not often have the resources to protect their ideas from infringement.