Infringement Defense Cost Reimbursement
Insurance
IP Defense Cost Reimbursement Insurance:
- Reimburses you for your LEGAL EXPENSES when you have to
defend yourself against lawsuits brought in the U.S. for
patent, trademark, or copyright infringement.
- Reimburses your legal costs when you assert invalidity
as a defense to a charge of patent/trademark/copyright infringement.
- Reimburses the cost of reexamination proceedings initiated
by the Named Insured as a defense strategy arising out of
a lawsuit for patent infringement.
- Optionally coverage for the reimbursement of DAMAGE awards
against you can be purchased.
Policy policy premiums start as low as $2,500.
| Obtain a Free, No Obligation
quote Online: CLICK "Request Quotation"
above. |
Why do I need IP Defense Cost Reimbursement
Insurance?
Litigation is expensive! Median litigation costs for an infringement
suit through trial can range from $180,000 for copyrights
to $1,200,000 for patents nationally. Now with policy limits
ranging from $100,000 to $1,000,000 per claim you can now
insure that litigation funds will be available when needed.
IP Defense Cost Reimbursement Insurance prevents abandoning
of market share by timely and forceful defense of patent infringement
charges. It also:
• Prevents unexpected cash drain on operations. Provides
adequate litigation funds to optimize a favorable decision
for you. Deters frivolous suits by demonstrating ability
to financially protect yourself.
• Makes your business more attractive to investors
who may be considering investment.
• Insurance strengthens the viability of your company.
Answers to Frequently
Asked Questions
Q.
|
Are INVALIDITY
COUNTERCLAIMS a separate election or is the assertion
of invalidity as a defense included in the coverage of
the policy with no additional increase in premium? |
| A. |
INVALIDITY COUNTERCLAIMS
are covered by the policy without increase in premium.
|
Q.
|
Can coverage
be obtained if there is a known problem IP at the time
insurance is sought? |
| A. |
Yes. However, the defense
of a lawsuit against you on the problem IP may have to
be excluded from coverage under the policy.
|
Q.
|
Are the expert
witness fees and other non-legal costs associated with
defending against a charge of INFRINGEMENT covered by
the policy? |
| A. |
Yes, all outside costs necessary
to defend against a claim of INFRINGEMENT and assert any
INVALIDITY COUNTERCLAIM, including travel costs of expert
witnesses, are covered.
|
Q.
|
Are declaratory
judgments or costs associated with anti-trust counterclaimscovered? |
| A. |
No, Declaratory Judgments
brought by or against the Named Insured are not covered.
The policy reimburses defense only and, of course, INVALIDITY
COUNTERCLAIMS and REEXAMINATION PROCEEDINGS brought as
a defense strategy.
|
| Q. |
What happens
when I am sued? |
| A. |
Once you are sued, you must
notify the Company on a standard claim form. In addition
to information submitted on the claim form, you are also
required to secure and deliver to the Company a favorable
opinion letter from outside IP counsel (independent of
the counsel chosen to litigate) on matters of validity
and INFRINGEMENT. Having complied with the above and all
of the other policy terms, if the company finds the suit
to be COVERED LITIGATION under the policy, reimbursement
will begin.
|
Q.
|
Is the rating
of my product prior to quoting a premium discoverable
in a subsequent trial. |
| A. |
No. The rating worksheets
are company confidential and cannot be discovered. They
are not disseminated to outsiders and are strictly the
work product of the rating committee, done in anticipation
of litigation, all of whom are attorneys.
|
| Q. |
What endorsements
are available to the policy? |
| A. |
There are several endorsements
available which modify the policy. Some of the more frequently
used endorsements are as follows:
- Minimum Earned Premium: There is
a minimum of 25% of the premium earned should the
policy be cancelled by Insured or the Company.
- Insurance Policy Renewal: The FAVORABLE
INFRINGEMENT OPINION must be updated (first renewal
only). Lawsuits already covered are excluded from
more coverage under the renewal policy and the ninety
(90) day waiting period is carried forward to the
end of the renewal policy.
- Exclusion of present problem patent/trademark/copyright:
The Exclusionary Endorsement provides that the Company
will not authorize any CIVIL PROCEEDING against the
Named Insured alleging INFRINGEMENT of an IP named
in the endorsement.
- Service of Suit against the Company:
The Service of Suit Endorsement is an endorsement
required by certain states which provides that should
the Named Insured wish to bring suit against the Company,
the Company agrees to comply with requirements necessary
to give the Court jurisdiction.
|
| Q. |
What
are the exclusions? |
| A. |
Principle exlcusions are:
- Lawsuits between two Named Insureds
under the same policy
- INFRINGEMENT known or existing prior
to the effective date of the policy
- Willful infringement
- Criminal acts
- Anti-trust or anti-competition matters
|
Q.
|
Can IP Defense
Cost Reimbursement insurance protect me against my liability
under Section 2-312(3) of the Uniform Commercial Code
(UCC)? |
| A. |
Yes, IP Defense Cost Reimbursement
insurance will reimburse your LITIGATION EXPENSES under
circumstances where you must legally defend another for
his INFRINGEMENT.
|
Defense Cost Reimbursement Insurance
Program Summary
PROGRAM
ADMINISTRATOR: |
Intellectual Property Insurance
Services Corporation |
| CARRIER:
|
Indian Harbor Insurance Company
(a subsidiary of XL Capital Ltd.)
Evanston Insurance Company |
A.M. BEST
RATING: |
A+ (Superior), XV
A (Excellent), IX |
STANDARD
&
POOR'S RATING:
|
AA |
| LIMITS:
|
From $250,000 to $5,000,000
Each Claim
From $250,000 to $5,000,000 Annual Aggregate |
SIR/
DEDUCTIBLES: |
From $2,500 to $50,000 Each
Claim |
| CO-INSURANCE:
|
Minimum - 10%; Maximum -
25% |
| UNACCEPTABLE
CLASSES: |
None |
| TERRITORY
AVAILABILITY: |
The United States,
its Territories and Districts |
| COVERAGE: |
LITIGATION EXPENSE Reimbursement for:
- Intellectual Property INFRINGEMENT
suits brought against the Named Insured during the
Policy Period (i.e. COVERED LITIGATION).
- Assertion of Patent INVALIDITY COUNTERCLAIMS
in COVERED LITIGATION.
- RE-EXAMINATION PROCEEDINGS initiated
by Named Insured as a defense to COVERED LITIGATION.
- Reimbursement for DAMAGES assessed
against Named Insured.
|
PARTIAL LIST
OF CONDITIONS: |
- Named Insured must obtain opinion
of noninfringement based upon a search of Patents
in the U.S. Patent & Trademark Office.
- Company issues authorization letter
after claim form received and all conditions are met.
- Company shares pro rata in any award
of attorney fees and costs up to the amount Company
has spent in respect to the COVERED LITIGATION.
|
| ASSIGNMENT: |
Policy non-assignable by
Named Insured. Assignable by Company with substantially
all of its business. |
EXTENDED
REPORTING PERIOD: |
Extended reporting period
available. |
| PARTIAL LIST
OF EXCLUSIONS: |
Excluded are:
- Willful acts of INFRINGEMENT.
- Any litigation not specifically
included in Policy.
- Fines, penalties, judgments, punitive,
exemplary, treble, multiple, direct, indirect and/or
consequential damages.
- Criminal acts.
- Lawsuits of which Named Insured
was aware or knew were eminent at the time of purchase.
- Asbestos Liability.
- Nuclear Liability.
|
| Obtain a Free, No Obligation
quote Online: CLICK "Request Quotation"
above. |
The above material is for
presentation and marketing purposes only, and in no way changes
the terms or effect of the Policy language. Consult a copy
of the Policy itself for any specific questions that you may
have. The term, "Alleged Wrongdoer(s)" referred
to throughout this document shall mean an entity which is
or is suspected of making, using, selling, offering for sale
or substantially completing and displaying any process, machine,
manufacture, composition of matter, symbol, slogan, mark or
work of authorship defined by the IP for which insurance is
sought.
|
