Benefits of Intellectual Property Insurance? - Insurance For Intellectual Property

Benefits of Intellectual Property insurance

A recent UK government survey found that a significant number of companies whose IP was being infringed upon were unable to take legal action due to the excessive cost of litigation. Such inaction can often lead to both reputational and financial harm while also rendering your intellectual property worthless.

IP Insurance will cover the costs of either defending clams you have infringed third party rights or enforcing your rights against infringers. Policies are purchased annually, and cover court fees, own-side and your opponents costs.

Here’s how purchasing intellectual property insurance through a trusted intellectual property insurance broker can add real value to your business:

1. Protecting cash flow

Intellectual property litigation is hugely expensive and can have a devastating impact on the value of a company. Right-holders often cannot afford to take decisive action which reduces the value of the intellectual property and the business itself as infringers know they will get away scot free.

Our policies will meet the cost of the litigation allowing you to take swift and decisive action without affecting the financial position of your company.

2. Providing a deterrent

Once you have purchased a policy with us we will provide you with a Safeguard IP logo to add to your marketing literature. This logo confirms that intellectual property insurance is in place and will make potential infringers think twice about copying your brand, design, technology or creative works.

3. Improving your negotiating position

If you are involved in litigation and your opponent knows you have the benefit of an insurance policy you are less likely to have to settle on unfavourable terms, thereby limiting the risk of unsuccessful litigation.  Litigating from a position of strength can also generate licensing opportunities.

4. Giving you the ability to indemnify large licensees

It is often the case that larger customers/licensees demand indemnification against the costs of intellectual property disputes. In many cases it would be unwise to give such indemnities without the benefit of an insurance policy to protect against these sizeable risks.

5. Adding value when licensing or assigning your rights

Having an insurance policy for intellectual property in place will give comfort to a licensee that if an issue does arise, you, as the licensor, have the resources to take decisive action. Similarly, having insurance in place makes your intellectual property more attractive to a purchaser if you are looking to sell your rights.

6. Reassures lenders and investors

In the modern economy most business value does not lie in tangible assets. Nowadays, a business’s real value lies in its intellectual property. Having IP insurance in place gives lenders comfort that resources are available to maintain the value of the right if it is infringed. It also shows prudent planning and an understanding of the importance of intellectual property to your business.

Considering the amount of money spent on intellectual property (in the form of R&D and marketing) and the financial damage litigation can inflict, can your business afford not to have intellectual property insurance?

Act now before it is too late. Contact us for a no obligation quote.