January 15, 2016


Product Overview

Your 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 you hold sought-after technology on products, processes or methods of doing business.  Also, if your company is experiencing or planning a merger and/or acquisition, or if your vendor and supplier contracts require indemnification for IP litigation, you will have additional exposure to IP litigation.

The fact that your company has a patent(s) on your products does not guarantee that there will not be a suit brought against you by a third party, such as a patent troll or a competitor, holding similar IP rights.  Even if the case against you is unjustified or frivolous, legal bills will still be incurred in funding the defense and potential damages will still be awarded by the court.

Features & Benefits

Defense coverage is available for any company that is making, using, selling, offering for sale or importing goods and/or services, using a trademark and/or service mark and/or using copyrightable material in commerce.  Coverage may also be available for business processes.

Advantages of the Defense policy include preventing abandonment of market share as well as preventing unexpected cash drain on operations.  Carrying the Defense policy often deters frivolous infringement lawsuits and provides adequate litigation funds to optimize a favorable outcome on the merits.  Insurance may attract investors and reduces the pressure to settle infringement cases.

Policy terms range from 1 to 3 years with limits ranging from $250K to $10M (higher limits may be available).  Copay is 10% (minimum), Self-Insured Retention (SIR) is 2% (minimum) of claim limits.  Pre-existing threats of infringement are excluded from coverage, and damages will be covered back to the date the infringing activity began.

Claim Information

The Insured may invoke the Defense policy by 1) notifying the Company of the discovery of infringement and other relevant facts by completing a claim form provided by the Claims department; and 2) providing the Company with a favorable opinion letter from independent IP counsel regarding the issue of enforceability, validity and infringement.

Upon compliance with the policy terms, the Company will then authorize the suit and the policy will begin to reimburse the Insured for the Litigation Expense.

The Policy Holder controls the lawsuit; however, the Company may suggest reliable and preferred counsel to the Insured but the Insured ultimately chooses.  Counsel must adhere to litigation and billing guidelines set forth by the Company to ensure the full value of the policy.  The Insured dictates the settlement terms, if any.

Request a Premium Estimate!      Request a Formal Policy Quote!

Contact Us With Your Questions!

Request a Premium Estimate!          Request a Policy Quote!          Contact Us With Your Questions!