IPISC
- 2. What is Intellectual Property?
• Patents: Patents protect inventions
•Trademarks: Trademarks identify the source (maker or provider) of
products and services
•Copyrights: Copyrights protect original works of authorship, such as
literary works, music, art and software
•Trade Secrets: Trade Secrets protect confidential information or
secrets
©2015 Intellectual Property Insurance Services Corporation Ver.2015_8_26
- 3. Do You Know The Statistics?
• $2.8 million - Average cost of Patent Infringement Litigation
• 1.5-3 yrs. is the average length of business disruption due to a lawsuit
• 40% increase in patent lawsuits since 2010
• 5,134 patent infringement lawsuits filed in 2014
• Record number of patent infringement lawsuits filed in Q2, 2015
• CGL’s ‘Advertising Injury’ does NOT cover patent litigation
3©2015 Intellectual Property Insurance Services Corporation Ver.2015_8_26
- 4. Patent
Litigation
Amount in controversy
< $1 M | $873 K
$1 M - $10 M | $2.2 M
$10 M - $25 M | $3.5 M
Copyright
Litigation
Amount in controversy
< $1 M | $325 K
$1 M - $10 M | $663 K
$10 M - $25 M | $1.1 M
Intellectual
Property
Litigation Costs*
Trademark
Litigation
Amount in controversy
< $1 M | $354 K
$1 M - $10 M | $670 K
$10 M - $25 M | $1.1 M
*2015 AIPLA Report of the Economic Survey- Litigation Costs reported are average litigation costs through trial, without assessed
damages and/or settlements.
©2015 Intellectual Property Insurance Services Corporation Ver.2015_8_26
- 6. Any Business Holding
IP
Rights Can Experience
InfringementA small company with a
successful pet grooming product
was infringed upon by a much
larger company. The larger
company stole a product idea
and also copied an infomercial
exactly. Our insured, using an
enforcement policy, was able to
negotiate a sizable settlement
and shut down the infringer.
All Companies
Making, Using or
Selling Products
and/or ServicesA mid-sized fitness product
manufacturer was sued by
an industry leader that
brought a groundless charge
of patent infringement as a
strategy to protect market
share. Our insured, using a
defense policy, was able to
prevail at trial and continue
sales of their product.
Who is at Risk?
©2015 Intellectual Property Insurance Services Corporation Ver.2015_8_26
- 7. Can Your Customers Afford the
Risk?
• Business failure
• Loss of controlling or majority interest
• Right to sell products, processes and services
• Revenue shortfalls
• Loss of market share
• Unwanted licensing or contracting deals
• Revocation of technological advances
©2015 Intellectual Property Insurance Services Corporation Ver.2015_8_26
- 8. IPISC’s Products
• IP Enforcement Insurance - A unique, plaintiff’s policy to help
your customers pay the cost to enforce IP rights
• IP Defense Insurance - The solution to the gap left in CGL
policies
for IP risks to help your customers pay the cost to defend charges of
IP infringement
©2015 Intellectual Property Insurance Services Corporation Ver.2015_8_26
- 9. Additional Products
• Multi Peril IP Insurance - A first-party coverage, business interruption
policy due to the loss of the insured IP litigation
• Unauthorized Disclosure Insurance - Coverage for the
unintentional
exposure of a 3rd party’s entrusted confidential information
• InventPro® Enforcement Insurance - A starter enforcement policy
for
inventors, startups, and small companies with limited IP
• Troll Defense Insurance - Specifically covers infringement charges
brought by pre-identified patent trolls and/or patent troll-related patents
• Post Grand Defense Insurance - Provides coverage for inventors by
paying the legal costs of responding to AIA (American Invents Act) actions and
maintaining the validity of the patent in question
• Asset Backed IP Insurance - Policy allows using patents as collateral
for a loan, with loan default covered by the insurance
©2015 Intellectual Property Insurance Services Corporation Ver.2015_8_26
- 10. CGL
Advertising Injury- Narrowly,
limited patent coverage, if any
Patent must “claim” the actual
way the product or service is
advertised
Trademarks and copyrights only
as exclusively used in advertising
D&O
No intellectual property
infringement litigation
expenses or damages
covered
Coverage Gaps
for IP
Infringement
E&O
No patent coverage
Trademarks and copyrights,
may have some sketchy
coverage older policy forms-
generally excluded
©2015 Intellectual Property Insurance Services Corporation Ver.2015_8_26
- 11. Cyber
Cyber does not usually cover
the products and services
that companies sell
Usually limited to coverage
for trademarks and
copyrights, depending on the
policy terms
Coverage Gaps
for IP
Infringement
Media
Usually, no patent coverage
Trademarks and copyrights
have limited coverage, such
as content distributors and
producers of multi-media
content
Professional
Liability
Limited coverage if a
professional has given
advice or has provided
services that are a direct
cause of the infringement
allegations
©2015 Intellectual Property Insurance Services Corporation Ver.2015_8_26
- 12. Disclaimer
The information contained in this presentation is for informational purposes only and is provided by “Intellectual Property Insurance Services
Corporation.” While we make every effort to ensure the accuracy of the information and materials provided, we make no warranties,
expressed or implied, regarding errors and omissions and assume no legal liability or responsibility for loss or damage resulting from the use
of information contained within. Examples of pricing or coverage are not necessarily indicative of your results; each applicant and policy
holder is unique and may be subject to different outcomes. Highlights of Policy provisions may have been presented, but did not cover all
aspects of coverage. Please consult a copy of each particular Specimen Policy for complete terms and conditions. This presentation and its
materials do not change or replace any terms or effect of any Policy language. If you have questions, please consult your professional
advisor.
©2015 Intellectual Property Insurance Services Corporation Ver.2015_8_26
