Infringement Enforcement (Abatement)
Intellectual Property Insurance Services Corporation's Enforcement
Insurance (Abatement) coverage is available for intellectual
property (patents, trademarks and/or copyrights). The policies
cover litigation expenses incurred in enforcing the
intellectual property against infringers up to the policy
limit.
Infringement Abatement Insurance:
- Covers litigation expenses incurred in enforcing the intellectual
property against infringers up to the policy limit.
- Reimburses you for your legal expenses when you have to
enforce your patents, trademarks, or copyrights (intellectual
property) against infringers.
- Pays your legal costs when your intellectual property
is challenged by a countersuit for invalidity.
- Covers US and foreign patents, copyrights, and trademarks,
as well as patent or trademark applications including provisional
patent applications. Why do I need Infringement Abatement
Insurance?
Annual infringement policy premiums start as low as $1,300.
| Obtain a Free, No Obligation
quote Online: CLICK "Request Quotation"
above. |
Why do I need Infringement Abatement Insurance?
Your intellectual property is a valuable asset. Every act
of infringement lowers its value and indeed unabated infringement
can render it totally worthless! Infringement Abatement Insurance:
Prevents loss of market share by timely and forceful
response to infringement.
Prevents unexpected cash drain on operations.
Provides adequate litigation funds to optimize a
favorable decision for the intellectual property holder.
"Insured patents, trademarks and/or copyrights" are
more attractive to investors who may be asked to fund a
business.
Insurance strengthens the "licensability" of your
intellectual property.
In most cases, the policy reimburses you for 80%
of your legal costs until the per claim limit of your policy
has been reached.
The Insured controls the conduct of the litigation.
The Insured may invoke the policy by
- notifying the Company of the discovery of INFRINGEMENT
and other relevant facts by completing a claim form provided
by the Company; and
- providing the Company with a favorable opinion letter
from an intellectual property counsel regarding the issues
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 his LITIGATION EXPENSES.
Answers to Frequently Asked Questions
Q.
|
Are
invalidity counterclaims covered by the policy with no
additional increase in premium? |
| A. |
Yes, to the extent they arise out of
AUTHORIZED LITIGATION. Bear in
mind that the policy covers enforcement and invalidity
counterclaims only, and covers no claims of antitrust.
|
Q.
|
Can coverage
be obtained if there is a known Alleged Wrongdoer(s) at
the time insurance is sought? |
| A. |
Yes. However, that particular Alleged
Wrongdoer(s) will be excluded from coverage under the
policy at least to the extent of his current activities.
|
Q.
|
Are the expert
witness fees and other non-legal costs associated with
proving infringement covered by the policy? |
| A. |
Yes, all outside legal and non-legal
costs necessary to prove infringement and rebut any
counterclaim of invalidity arising from AUTHORIZED LITIGATION,
including travel costs of expert witnesses, are covered.
|
| Q. |
What happens
when I discover an infringer? |
| A. |
Once you detect the existence of a
possible infringer, you must notify the Company on a
standard claim form supplied by the Company. Having
complied with this and all of the other policy terms,
the Company will consider the action to be covered under
the terms of the policy, absent fraud or material misrepresentation
on the Company.
|
Q.
|
Is the rating
of my intellectual property prior to quoting a premium
discoverable in a subsequent trial? |
| A. |
The Company takes all steps possible
to ensure that 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, all of whom are attorneys. Since rules
of discovery vary from jurisdiction to jurisdiction,
however, we suggest you check with your counsel to confirm
that rating materials would not be discoverable.
|
| Q. |
What endorsements
can be added to the policy? |
| A. |
There are several endorsements
available which modify the standard policy. Some of the
more frequently used additional premium Endorsements are
as follows:
- Foreign coverage.
- Patent or
Trademark Applications: The Patent or Trademark
Applications Endorsement changes the policy to include
patent or trademark applications listed on the Declarations
page and provides that any infringement or like activity
which begins after the application was insured, is
covered for CIVIL PROCEEDINGS after issuance.
- Economic Benefit Relief: This Endorsement
waives Company's right to seek any recovery of the
first $250,000 in LITIGATION EXPENSES by virtue of
any economic benefit deemed to have occurred as a
result of the Named Insured winning in the sense of
(1) eliminating competition because of settlement
with or without a cross license arrangement; or (2)
gaining operating freedom because of injunctive relief
where no awards have been granted or the amount awarded
results in a shortfall in the Company's recoupment
of its payments made as LITIGATION EXPENSES.
- Exclusion of present infringer(s):
The Exclusionary Endorsement provides that the Company
will not Authorize Litigation under the policy by
the Named Insured against those parties named in the
endorsement.
- Licensee Coverage:
This endorsement provides that Licensee(s)
may be defendants in Authorized Litigation provided
the License Agreement was terminated by Licensee or
the Insured because of a material breach thereof.
- Re-Issue/Reexamination Coverage:
The Reissue/Reexamination Endorsement provides that
if during Authorized Litigation you decide to pursue
re-issuance of your Insured Patent's claims or the
Defendant petitions to have your Insured Patent reexamined
in the Patent Office, the policy will pay the associated
costs as Litigation Expenses.
- Other endorsement options that we
will provide you with for your consideration.
|
Q.
|
What kind of
legal impediment could exist with my patent which would
result in an unsuccessful prosecution of the infringement
suit? |
| A. |
The Company wants to make certain that
prior to Authorizing Litigation, there are no legal
impediments such as an on-sale bar (where the product
has been on sale or in public use for more than a year
before the filing date of the patent) which would prevent
the successful prosecution of the infringement suit.
|
Abatement Insurance Program Summary
PROGRAM
ADMINISTRATOR: |
Intellectual Property
Insurance Services Corporation |
| CARRIER:
|
Nutmeg Insurance
Company (a Member of The Hartford Group); and Indian Harbor
Insurance Company (a subsidiary of XL Capital, Ltd.) |
A.M.
BEST
RATING: |
A+, XV, both carriers |
| LIMITS:
|
From $100,000
to $5,000,000 Each Claim
From $100,000 to $5,000,000 Aggregate |
SIR/
DEDUCTIBLES: |
From $0 to $50,000;
Higher Options Available |
| COINSURANCE:
|
20% minimum; Higher
Coinsurance Available |
| COVERAGE: |
Litigation Expense Reimbursement for:
- AUTHORIZED LITIGATION (intellectual
property infringement suits) brought by the Named
Insured against an Alleged Wrongdoer for INFRINGEMENT
which began during the POLICY PERIOD;
- Defense of Patent Invalidity counterclaims
in AUTHORIZED LITIGATION;
- Reexamination in the Patent Office
of Named Insured's patent in AUTHORIZED LITIGATION
if petitioned by the Defendant in an attempt to invalidate
Named Insured's patent;
- Reissue costs during AUTHORIZED
LITIGATION in an effort by Named Insured to strengthen
the patent claims.
|
| TERRITORY:
|
The United States,
its territories and districts. |
PARTIAL
LIST
OF CONDITIONS: |
- Acts of the Alleged Wrongdoer must
begin and claim must be filed during the POLICY PERIOD.
- Favorable opinion by IP counsel
of Named Insured's choice re IP validity and INFRINGEMENT
required before authorization.
- 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 as well as any infringement
damage awards up to the amount Company has spent with
respect to AUTHORIZED LITIGATION under most conditions,
but never to exceed 1.25 times the amount Company
has spent.
- Economic Benefit Relief Endorsement
is available for additional premium. This Endorsement
waives Company's right to seek any recovery of the
first $250,000 in LITIGATION EXPENSES which might
arise by virtue of any ECONOMIC BENEFIT deemed to
have occurred as a result of the Named Insured (1)
eliminating competition because of settlement with
or without a cross license arrangement; or (2) gaining
operating freedom because of injunctive relief, where
no or insufficient monetary awards have been granted.
|
| PARTIAL
LIST OF EXCLUSIONS: |
- Preexisting acts of an Alleged Wrongdoer.
- Liability for judgments and damages.
(May be available for defense reimbursement policies,
however).
- Expenses incurred prior to initiation
of a CIVIL PROCEEDING underlying AUTHORIZED LITIGATION.
- Breach of contract by Licensees
(unless included by Endorsement).
- Willful acts of Named Insured giving
rise to infringement.
- Criminal acts.
- Coverage against licensees which
are not included by endorsement (New licensees must
be added within thirty (30) days of license).
|
| 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.
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