Intellectual Property Insurance

Companies are often accused of infringement or face being infringed upon, putting their budget and intellectual property at risk. This policy covers legal fees and offers enforcement coverage, no matter how grounded or not the claim is.

Get a Quote

Home » OLD COVERAGE » Intellectual Property Insurance

Who is Intellectual Property Insurance for?

Intellectual property (IP) describes many things, such as patents, trademarks, copyrights, trade secrets, etc. Consider the ingredients of Coca-Cola or the highly recognizable Nike Swoosh. Unsurprisingly, intellectual property needs protecting and monitoring just as much as tangible property, if not more. Because of its high value, IP litigation is anything but cheap. Infringement claims, whether from patent trolls or real innovators, can skyrockets over $3 million quickly.

Holding patents

Companies holding one or more patents are extremely vulnerable to costly patent litigation.

Infringement vulnerability

Competitors often infringe upon another business’s IP, leaving it in need of protecting.

Accidental infringement

It’s not out of the question to infringe upon some other businesses IP, in which case litigation will follow.

Why you need Intellectual Property Insurance

Summary

IP insurance covers companies in claims where they are accused of infringement and lawsuits where others infringe upon their existing IP rights. This policy provides legal fees and offers enforcement coverage all in one fell swoop. In many IP litigation cases, the lawsuits prove frivolous; however, defense fees still drain companies dry frequently.

Reasons for getting IP Insurance
file copyright tm Covers companies accused of infringement
shield check Protects your intellectual property from infringement
legal Offers defense and enforcement coverage
Cost of patent lawsuits
$3m

Patent lawsuits can cost between $950,000 and $3,100,000 depending on how far the trial goes and the revenue at stake.

Issued patents in force today
6.2m

The number of issued U. S. patents exceed 6.2 million, leaving room for millions of dollars worth of litigation every year.

US copyright cases
5k

In the US, up to 5,000 copyright cases are filed each year. Patent lawsuits are even higher, up to 6,000 annually.

What Does Intellectual Property Insurance Cover

Intellectual property insurance provides capital for legal expenses if you find yourself involved in covered IP litigation. In the case of defense policies, it helps pay for any judgment or settlement rendered against you. Enforcement policies let you work with the carrier to actually enforce your own patents. With the underwriters’ permission, you could sue the infringer and then be reimbursed for your legal costs.

Defense Coverage

For companies that could be accused of infringement. This provides money for defense costs and any judgments/settlements against you if you’re held liable for infringing on a patent, trademark, copyright or other forms of intellectual property.

Enforcement Coverage

For companies that own patents, copyrights and trademarks. This lets you go on the offensive with the help of your insurance carrier. With the underwriter’s approval, the policy will fund the litigation against the guilty party and allow you to recoup income you’ve lost as a result of the infringement.

Patent Insurance

Patent insurance is a type of intellectual property insurance coverage. An IP insurance policy can include coverage for patents, copyrights and other specific types of IP. The phrases “Intellectual Property insurance” and “Patent insurance” are sometimes used interchangeably, but not all IP insurance policies include coverage for patents.

IP Insurance Claim Examples

Here are some claim examples that illustrate what IP Insurance covers

iLife sued Nintendo for allegedly stealing their motion-sensing accelerometer technology which they claimed was used in the creation of the Wii Remote. iLife held rights to this technology through this patent (along with 5 others) and sought $144M in damages, $4 for each of the 36 million Wii gaming system sold.

Ultimately, the jury settled on a $10M award for iLife, which was recently upheld on appeal.

IP Insurance FAQs

Liability limits vary, depending on a company’s needs. Different industries have various exposure and require a specialized approach. It’s best to decide on IP limits with the guidance of an expert insurance professional.

The cost of IP insurance will depend on several things, including the company’s size and the company’s stage of development. Other factors include:

  • Exposures: risks being insured.
  • Company practices: views on safety, compliance, and risk management.
  • Program structure: the amount of deductible and willingness for a company to assume more risk
  • Claims history: the type and amount of past claims against the company

How it works

Finding insurance coverage doesn’t have to be painful. We aim to make the purchasing experience as streamlined & intuitive as possible.

1
Get a quote

Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

1
Get a quote

Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

2
Pair with a specialist

No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

2
Pair with a specialist

No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

3
Stay one step ahead

To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.

3
Stay one step ahead

To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.

Latest IP Insurance Insights

Blog Post x
July 22 • Intellectual Property • Risk Management

Patent and IP Insurance: Protect Your Ideas

  So what exactly is the value of an idea? These days it can make or break your business.   There has been a 71%...

Read Article
wells baum unsplash
February 22 • Intellectual Property • Thought Leadership

Nintendo IP suit shows value of intellectual property insurance

Who doesn’t love video games? Okay, they might not be everybody’s thing but it’s also hard not to be impressed by how powerful the technology...

Read Article
ip insurance
June 2 • Intellectual Property

How COVID-19 Impacts IP Insurance Risks

COVID-19 is shaking up the economy — but how does this impact IP insurance risks? Here’s a closer look for small and mid-market business owners.

Read Article