The Rise of IP
For most businesses, the balance sheet tells an incomplete story. Buildings, equipment and stock all appear as tangible assets with a clear accounting value. But the patents that protect your technology, the trade marks that define your brand, the software you have built and the confidential processes that give you a competitive edge — these often go unrecorded, even when they are worth far more than everything else combined.
The evidence for this has never been stronger.
What retail failures taught us about IP value
The collapse of several major UK retail brands in recent years illustrated the point more clearly than any textbook could. When Debenhams, Laura Ashley, Oasis and others went into administration, buyers showed almost no interest in the physical assets — the stores, the fixtures, the stock. What attracted serious money was the intellectual property.
Boohoo paid £55 million for the Debenhams brand without acquiring a single store. Marks and Spencer bought the Jaeger brand while the physical estate was wound down entirely. The pattern was consistent: the tangible assets were worthless, but the intangible ones retained — and in some cases increased — their value through the crisis.
This is not a retail phenomenon. It reflects a fundamental shift in where business value now resides. According to research by IP valuation specialists, IP and other intangible assets now account for over 65% of the value of many businesses. For technology companies, startups and innovative SMEs, that figure is often considerably higher.
Why this matters for growing businesses
If your business relies on innovation, a recognisable brand, proprietary software or specialist knowledge, your IP is almost certainly your most valuable asset — even if it does not appear on your balance sheet in that way.
That creates two related challenges.
The first is awareness. Many businesses significantly underestimate the value of their IP because it is not measured in the same way as physical assets. Understanding what you own, registering it where appropriate, and managing it actively is the foundation of protecting that value.
The second is risk. A registered patent or trade mark only has value if it can be enforced. And enforcing IP rights — or defending allegations that you have infringed someone else’s — can be extraordinarily expensive. A contested patent dispute in the UK High Court can cost over £500,000 per side before a judgment is reached. For most SMEs, that figure is simply unabsorbable.
How IP insurance protects the value you have built
IP insurance exists precisely to address this gap. It covers the legal costs of enforcing your IP rights against infringers and defending allegations that you have infringed a third party’s rights — giving businesses of any size the financial means to protect assets that may represent the majority of their commercial value.
For a business investing in innovation, building a brand or developing proprietary technology, IP insurance is the logical counterpart to the registration costs already being incurred. Registering your IP gets you the right. Insurance ensures you can actually use it.
If you would like to understand whether IP insurance is relevant for your business, our free assessment takes under two minutes. Or if you would prefer to speak to a specialist directly, we are happy to talk through your situation and provide a free indicative quote within 24 hours.
Do I need IP insurance? → Get a free quote →
This article is provided for general information purposes only and does not constitute legal advice. Readers should seek independent legal advice on their specific circumstances before taking any action.