Intellectual Property Insurance has become a new topic in emerging technologies risk management strategy due to increasing IP litigation. Emerging technologies startups are basically an office with people, desks, and computers, and a great idea that could turn big profits in the future. Summarily, the protection of that great idea, or intellectual property, is paramount to the future of the company.
Intellectual Property Insurance provides coverage to enforce your patent, copyright, or trademark, defend your company against allegations of intellectual property infringement, and for business interruption losses due to intellectual property litigation. Also known to some as trademark insurance, it can be an effective tool in protecting IP assets, as well as finances that could be exhausted to fund a legal battle. A relatively new and unique insurance coverage, it is now gaining notice from the business world as IP litigation continues to rise. The obvious benefit to IP insurance is providing the cost of legal counsel in such matters, considering the fact that it is estimated that litigation costs for patent suits ranges from $750,000 to over $5,000,000! Further, there have been countless allegations of large companies purposely treading on small companies IP rights because they know that they can't afford to fight them off.
Thomas Gregory Associates has been involved with Intellectual Property Insurance for several years and works with clients to help them understand how they can protect their most important assets. IP insurance is often a "revelation" to those that are educated about it and is gaining interest fast due to its possibilities.