DEFENSE COVERAGE
Designed to provide legal defense funds for IP infringement regardless of a lawsuit’s legitimacy, a Defense policy can also discourage frivolous infringement lawsuits when the plaintiff learns this type of coverage backs the defendant.
Besides covering invalid counter claims, there is also an option to protect business processes. Defense coverage also provides automatic protection from surprise lawsuits. And since there is a large expense threshold, customers can be assured that they will receive the best representation available.
This critical insurance also empowers companies to remain resolute when threatened by lawsuits. This eases the temptation to settle cases and/or succumb to licensing agreements or royalties that can harm a company’s competitive advantage. The policy also covers invalid counter claims and helps protect market share.
The Intellectual Property Defense policy is based on the value of the intellectual property. Policy terms can range from one to three years with limits ranging from $250,000 to $10 million or higher. The policyholder’s co-payment is 20 percent with minimum self-insured retentions (SIR) at 2.5 percent of claim limits. It may not matter does if the activity was known at the time of policy purchase.
|
| |
| |
| |
| |
 |
Case Study: Defense Coverage: Life Sciences |
 |
A former student at a nationally recognized life sciences academic lab developed a new approach and product to enable medical service providers to have real-time contact with their patients. Impressive media attention tipped off one of the lab professors who had a patent for a similar product.
Fortunately, the former student carried Intellectual Property Defense coverage, which covered the discovery process that revealed the product’s concept; design and materials based on his ideas. As a result, the former student was not only able to continue marketing the product, but the professor reimbursed litigation costs. |
|
| |
|
|
|
| |
|
|
|
|
|
