Product will pay for costs associated with a number of IP exposures
Specialist underwriting agency CFC has launched a new intellectual property (IP) insurance product for small and medium-sized enterprises (SMEs).
The new product covers the costs associated with a range of IP exposures including infringement.
As well as covering the costs and potential damages in an IP infringement action against a company, the product also covers the potential loss of a right or a loss of profit.
Where a right is lost through a dispute, the costs incurred in obtaining and maintaining the right can be recovered by the insurance. In the event that a company is unable to continue selling its product, it can also cover the loss of profit.
CFC intellectual property practice leader Erik Alsegard said: “All business sectors now face global competition where IP is seen as a key competitive advantage, whether it is a patent, trade mark or other rights.
“The importance placed on IP also means that the associated risks are increasing and despite the best intentions any company may face infringement allegations, be it from a competitor or a patent troll. To the same extent, as the owner of IP rights, there is little point in holding on to the rights if you cannot afford to enforce them when necessary.”
He added: “With the broad scope of cover available under our new IP insurance we want to enable our customers to operate in a competitive environment by removing the significant costs incurred if any of the risks come true. Unless you are a very large company, IP litigation and associated costs can harm the balance sheet significantly and potentially prevent trading.”