By Iain Russell, Patent Attorney and Director at Russell IP (BSc, CPA, EPA, FRSA — 20 years’ experience in computer-implemented inventions and music technology).
IP Insurance: An Option Worth Knowing About
A question we are sometimes asked, particularly by those new to patents, is what the point is in having a patent if you cannot afford to enforce it, or to defend an allegation that you infringe someone else’s rights. It is a fair concern: patent disputes can be expensive.
One option that some businesses may not be aware of is intellectual property (IP) insurance.
Important note: Our expertise is in patents, rather than insurance. Advising on insurance is a regulated activity and we are not authorised to provide that advice. This article is simply intended to highlight the existence of IP insurance, rather than to advise on whether insurance is appropriate for a particular business or which type of cover to choose.
Contents
What Is IP Insurance?
Depending on the policy, IP insurance may provide financial support towards the costs of:
- enforcing IP rights against others — for example, pursuing a third party you believe is infringing your patent; and
- defending allegations of IP infringement — for example, responding to a claim that you infringe another company’s patent.
Some policies cover one of these; some cover both. The scope, availability, and terms of any cover will depend on the particular policy and circumstances.
Why Does Timing Matter?
Many IP insurance policies can only be taken out before any dispute has arisen. Once a dispute is under way, cover may no longer be available. It is therefore worth raising the question with an IP insurance broker sooner rather than later.
Where Can I Find Out More?
Further general information is available from the following sources. Please note that we are not responsible for content on these websites and cannot guarantee that it is fully up to date.
- UK Intellectual Property Office (UK IPO): gov.uk/guidance/intellectual-property-insurance
- Chartered Institute of Patent Attorneys (CIPA): cipa.org.uk/ip-insurance — including a list of brokers and insurers.
If you would like to discuss your patent strategy, or would like an introduction to a specialist IP insurance broker, please get in touch.
Disclaimer: This article is general information, not legal or insurance advice. For tailored guidance on your patent strategy, please contact Russell IP. For advice on IP insurance, please speak to a specialist IP insurance broker.
