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Intellectual Property Insurance

Intellectual property refers to the intangible assets of a business, including patents, copyrights, trademarks and trade secrets. These assets are often the most valuable and least understood assets of a corporation. This piece is intended to provide a basic understanding of these complex assets.  Coverage Provided by: IPISC Insurance

IP Enforcement Coverage

The Enforcement policy is a unique plaintiff's policy which reimburses the Litigation Expenses to enforce Intellectual Property (IP) against alleged infringers, as well as countersuits for invalidity in Authorized Litigation. The Enforcement policy is a blended coverage, meaning, there are elements of pure insurance (unexpected risk) and a bond (people made/moral risk). In the event the Insured loses the IP lawsuit, the Enforcement policy responds as a pure insurance policy. In the event the Insured wins the IP lawsuit and has recognized an Economic Benefit, the policy then acts as blended coverage. The Insured reimburses only the money paid out by the carrier, and retains any additional recoveries. Enforcement policies include an endorsement providing relief from the Economic Benefit repayment of the first $100K of non-monetary benefit. Repayment of Economic Benefit reinstates policy limits, and those funds are then available to pursue other infringers. 

IP Defense Insurance 

Any company is vulnerable to charges of IP infringement by simply making, using, selling, importing or offering for sale a product and/or service; or, if it holds sought-after technology on products, processes or methods of doing business. Also, companies experiencing or planning a merger and/or acquisition, and vendor and supplier contracts requiring indemnification for IP litigation all have exposure to IP litigation. The fact that a company has a patent on its product does not guarantee that there will not be a suit brought by a third party, such as a patent troll or a competitor, holding similar IP rights. Even if the case against the insured is unjustified or frivolous, legal bills will still be incurred in funding the defense and potential damages will still be awarded by the court. 

IP Collateral Protection Insurance

Collateral Protection Insurance (CPI) provides a vehicle through which an owner of intellectual property (IP) can use their IP as collateral for a loan. In essence, the issued policy protects against collateral default. For start-ups and growing companies, this can be a less-costly mechanism for obtaining financing, as opposed to selling equity.

Patent Post Grant Review Insurance

In general, companies may risk going out of business if they are not able to protect their innovations from the predatory business practices of others. One of these predatory business practices is extorting money from companies by entities known as Patent Trolls bringing ill-founded lawsuits based upon overly-broad patents. The real threat of Patent Trolls prompted a response from the public sector in the form of the America Invents Act (AIA). While the America Invents Act (AIA) was well intended in curbing the "Troll" type activities, it also carried with it the unintended consequence of creating a formidable barrier to legitimate enterprises in the form of Post-Grant-Review, a challenge to your patents, a challenge that can also be made by your competitors. This insurance policy enables you to aggressively fight off such challenges. 

Patent Troll Defense Insurance

This policy helps you aggressively fight back against lawsuits filed by patent trolls. "Patent Assertion Entities" (also known as trolls) are companies that buy (usually inexpensive poor-quality) patents, and use them as a basis for demanding royalty payments from other companies while threatening to sue non-compliant companies. Frequently trolls do not disclose what patents they own, or what specific functionality of a technology is infringing. Instead the troll challenges the entrepreneur to hire expensive lawyers and fight, while simultaneously offering to settle the claim less expensively than the lawyers will cost. Settling with trolls often requires an up-front payment, continuing revenue share payments, agreeing to issue a press release that praises the troll's technology and "fair licensing terms", and signing a non-disclosure and non-disparagement agreement that stops the "victim" from speaking freely about this extortion.

Unauthorized Disclosure of Confidential Information Insurance

This policy reimburses the litigation expenses and/or damages which allege an Unauthorized or Unintentional Disclosure of a third party's Confidential Information by the Named Insured; or, which alleges an Unauthorized Disclosure by an employee or person under the direct control of Named Insured or a former employee of the Named Insured on whose behalf of the Named Insured is responding pursuant to a written or legally imposed obligation to do so. There is a ninety (90) Day Exclusionary Period under the UDCI policy. Any threats of infringement brought during the initial 90 days of the policy are excluded from coverage. The 90 days are not lost; they are added to the end of the last Defense policy held by the Insured. Pre-existing threats alleging Unauthorized Disclosure, or, where the Named Insured has knowledge prior to the effective date of the policy of any activities which are or could be the basis for alleging Unauthorized Disclosure. 

Multi Peril Reimbursement Insurance

The Multi-Peril IP Reimbursement rider (MPIP) provides first party coverage for loss of value because of adverse intellectual property (IP) events such as Business Interruption, Loss of Commercial Advantage and the Cost of Redesign, Remediation & Reparations. These adverse happenings are in the form of legal actions by or against IP owners and/or third parties. The MPIP rider responds after the final adjudication of a civil proceeding that directly caused or established the loss of value.

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