Why buy IP insurance?

As an IP lawyer, I saw first-hand how damaging IP lawsuits such as patent litigation can be. Whether a client discovers their IP being infringed upon or whether they have inadvertently infringed on someone else’s rights, difficult decisions have to be made and actions taken. In some cases disputes relating to intellectual property can be settled fairly quickly, but the majority of cases take time and significant cost to resolve. Unfortunately, IP litigation is not cheap.

If a client does not have the cash reserves or intellectual property insurance to cover these costs, they have little option but to settle claims on unfavourable terms or allow the infringement to continue, which very often results in financial and reputational harm, and the devaluing of their intellectual property.

None of the above outcomes are satisfactory, but they can be avoided by having the right IP insurance in place.

Although IP insurance has been available for some time, the current market is unrecognisable from just a few years ago. There are now far more insurers offering a wide range of IP insurance policies, including products specifically aimed at SMEs. This has increased the availability of such products and reduced the cost of premiums. In addition, the IP insurers are global names with the likes of Munich Re, Liberty and QBE all offering products. This is good news for all current and prospective IP owners.

So, if like most businesses, you are investing money and resource into building a brand, technology or product, I strongly urge you to investigate the benefits of IP insurance. Assets of this nature are intangible, which makes it very hard to place specific value on them should they be infringed upon but these are often the most valuable assets in your business. The cost of preventing their theft can be devastating and IP insurance mitigates this risk.

I appreciate you are unlikely to have purchased IP insurance before, so once you have completed the proposal form, we will work closely with you until you have found the solution that works best for your business.

Contact us today for further information. We look forward to working with you.