Dispute type
Intellectual Property Insurance
Risk transfer that may be arranged around the cost and capital profile of intellectual property.
- A judgment or award wonConsidered
- A judgment against you
- Funder capital deployedConsidered
- Law firm fees and WIP
- Security for costs
- The opponent's costsConsidered
- DisbursementsConsidered
- Own legal costs
Illustrative. The exposures a dispute can put on a balance sheet. What a policy responds to is set by its wording.
Can intellectual property be insured?
IP disputes can be insured at different points: ATE for costs risk in loser-pays forums, capital protection for funders of enforcement programmes, and judgment preservation once a large infringement award is under appeal.
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Key points
- Validity and infringement risk are assessed together.
- Appeals are common, so post-judgment cover matters.
- Damages or royalty methodology affects the limit.
The risk profile
Patent, trade mark and trade secret disputes often combine validity and infringement questions, technical experts and appeals.
Outcomes can be binary and damages or licensing values large.
Which structures apply
- ATE in loser-pays forums
- Judgment preservation for large infringement awards
- Capital protection for funders of patent enforcement
Illustrative scenario
A patent holder wins a £60m infringement judgment and the defendant appeals on validity. The patent holder insures part of the judgment against reversal so that it can borrow against the award.
Figures are invented to show the mechanics. They describe no real client, matter or outcome.
Underwriting considerations
Validity risk, prior art, claim construction, the approach of the appellate court and the basis of the damages award.
Frequently asked
Can a patent judgment be insured on appeal?
Yes, judgment preservation cover can protect part of an infringement award against reversal on appeal.
Can patent enforcement be funded?
Yes, funders back patent enforcement, sometimes with capital protection on their investment.
Can I insure a patent infringement claim?
ATE can cover adverse costs in loser-pays forums, underwritten on validity and infringement risk together.
Does IP insurance cover being sued for infringement?
Defence-side IP cover exists as a separate line of insurance; for a specific pending claim, adverse judgment cover may be considered.
Why do patent judgments get insured on appeal?
Because patent verdicts are frequently appealed and can be large, making the appeal risk worth transferring for the patent holder or its funder.
General information only. This page is not legal, financial, investment or insurance advice. Any insurance is subject to underwriting and to the terms of the policy wording issued.