Intellectual Property (IP) litigation can be an expensive and time-consuming endeavor for many business owners. However, there are a variety of insurance options available that may help protect them from the high costs associated with IP litigation. Whether it’s obtaining insurance coverage against infringement claims, defending against third party infringement or covering legal fees and court costs, there is an option to fit most companies’ needs. From trade secrets to patents to copyright infringement, having the right type of insurance policy in place can help cover expenses related to IP litigation as well as provide peace of mind when it comes to protecting your intellectual property rights.
What is Intellectual Property Insurance?
Intellectual property insurance is a form of risk management that provides coverage for costs related to litigation, including legal fees, court expenses and lost profits due to the infringement of another’s intellectual property. It can also be used as a defense against non-practicing entities (NPE’s), which are entities that purchase patents and then sue companies for infringement. This type of insurance policy can be tailored to the specific needs of an organization and is designed to protect companies against the high cost associated with IP litigation.
Types of Intellectual Property Insurance Coverage
Patent Insurance: Patent insurance provides financial protection for patent holders by covering legal fees, court costs and other expenses related to the enforcement or defense of an issued patent. This type of insurance policy may also cover any costs associated with infringement claims, including lost profits and other damages.
Trade Secret Insurance: Trade secret insurance covers theft and misappropriation of a third party company’s trade secrets as well as legal fees associated with defending against third party infringement claims. This type of policy can also provide coverage for the costs associated with patent infringement claims.
Copyright Insurance: Copyright insurance provides financial protection from companies that own copyrighted material, such as books, films or software. It covers legal fees and court expenses related to copyright infringement claims as well as any damages awarded by the court.
IP Litigation Liability Insurance: IP litigation insurance is generally designed to cover the costs associated with patent and trademark infringement claims, including court expenses and damages awarded. This type of policy can also provide coverage for other types of IP-related litigation, such as trade secret or copyright infringement claims.
Most companies need insurance that covers different types of IP in order to be fully protected against the high cost associated with intellectual property litigation. By understanding the different types of IP insurance coverage and how they can help protect your business, you can ensure that your intellectual property rights are well protected.
Appropriate Intellectual Property Insurance Coverage
When selecting the appropriate type of intellectual property insurance coverage, it is important to consider the specific needs of your business. Depending on the types and scope of IP that you own or use, you may need more than one type of policy in order to be fully protected against potential litigation costs. You should also consider any additional risks that could arise from infringement or misappropriation of your IP, such as lost profits and other damages.
It is also important to thoroughly review your insurance policy before signing up for coverage. Make sure that the policy covers all potential risks associated with your IP, including court fees and any damages awarded from a successful infringement claim. Additionally, ensure that you understand the limits of the policy and any exclusions that may apply.
By understanding the different types of intellectual property insurance coverage, you can ensure that your business is adequately protected against litigation costs and other damages associated with IP infringement claims. With the right type of coverage in place, you can rest assured knowing that your rights to your intellectual property are secure.
If you would like more information, please contact Anthony L. Meola, Esq. at 914-825-1039 or via email: ameola@iplawusa.com.
