Introduction

In order to discuss Intellectual Property insurance, we must first see what IP can encompass. Please look at our blog post here for further information.

After you’ve familiarised yourself with what IP can comprise, you should carry out an IP audit of your business and identify your assets.

Once you’ve identified and, if necessary, taken steps to protect your IP, you can consider IP insurance. IP insurance is not often talked about but can be a very useful risk mitigation measure. Of course this should be taken out in conjunction with other strategies such as clearance searches and freedom to operate searches. Consult a qualified lawyer for advice with respect to your specific situation.

Risks that IP insurance may cover

IP insurance can help cover your costs if someone takes legal action against you for infringing their IP rights or for not paying royalties under a contract. This can include your legal fees and any damages you are ordered to pay. In some cases, it may also pay for the costs of defending yourself by challenging the other party’s rights, such as trying to invalidate their patent or trade mark.

It can also cover claims where someone tries to cancel or oppose your own IP rights, for example by opposing a trade mark application. Some policies even cover the cost of a public relations adviser to help manage any negative publicity linked to an IP dispute. Occasionally, IP insurance may also refund the fees you paid to register or renew an IP right if that right is later revoked or found to be invalid.

Benefits that this can offer you

If you decide that IP insurance is right for your business, some benefits could include:

  1. Giving investors or lenders comfort that you have taken this additional risk mitigation measure
  2. It can protect your cashflow
  3. You might feel more comfortable defending yourself, which puts you in a better negotiating position for out of court settlements
  4. It can give you access to expertise (for example if your IP insurance company has better access to experienced advisors for your specific claim)

Conclusion

All of the above is purely indicative and will depend on the circumstances of your case as well as the policy you have taken out. Make sure you consult an insurance advisor regulated by the Insurance Companies Control Service.

* The content of this blog post is intended for general informational purposes only and does not constitute legal advice. Reading this blog does not create a lawyer-client relationship.