When it comes to protecting your assets, you should be equally concerned about both tangible and intangible assets. The world is changing fast and value is no longer merely associated with physical property. The unique intangible creations of human intellect must be protected too. Your intellectual property must be insured in order to be protected so that your intangible assets are not used without your consent. While this is true that the notion that equal protective rights must be given to both tangible and intangible property is held globally, a toxic segment of the corporate world leverages these rights to advance their own agenda. This usually happens in the form of patent hoarding.
At times, companies become complicit in the practice of using their patent contravention claims to prevent competition or to gain profit. This immoral practice of patent trolling can take multitudinous forms. These incorporate activities that use patents to extort money. Patent trolling is not deemed as an illegal practice. However, it is considered wrongful as patent trolls deliberately try to extort money by hijacking somebody’s idea.
What patent trolls actually do is attain patent claims without any intent of producing anything. This enables them to advance their agenda of attaining wrongful profits in the guise of licensing fee or infringement fines. These patent sharks are extremely difficult to dodge specifically because they are not technically doing something against the law.
These non-manufacturing patentees can easily prey on MSMEs (Micro, Small and Medium Enterprises). As small and medium-sized companies are not utterly educated legally, they become more susceptible to these patent sharks. Small companies operating with small balance sheets are usually intimidated by these patent trolls. Resourceful corporate giants that engage in patent trolling can be formidable and can silence small companies easily. They have got competent teams of lawyers that use ruthless legal tactics to achieve their ends. They play tactics like frivolous litigation. They usually take legal action solely to harass their competitors. The motions they put forward are meritless but they easily get away with it as their argument is still legit under the law. These patentees abuse the judicial process by pursuing patent infringement claims that are groundless only to stifle competition. They can also employ strategic lawsuits against public participation (SLAPP) to intimidate and silence their competitors. The cost of legal defense can be extortionate and cannot be easily afforded by small companies. Patent trolls burden their competitors with small balance sheets with the exorbitant costs of legal defense and the end result is that they desist from any acts of legal opposition or criticism. These patent hoarding plaintiffs attempt to make the defendants succumb to the fear of having to pay too much. Frivolous litigation also intervenes with the ability of the companies to operate by burdening them with legal costs and even exhaustion.
Intellectual Property Insurance is a prerequisite if you want to be on guard against these patent sharks. They can easily trap you with their cunning legal tactics and you need to beware of these patent trolls. If you don’t have Intellectual Property Insurance, you are defenseless against patent trolling. In the corporate world, your competitors are always willing to prey on you and you need to be on the defensive when the attack occurs. Insurance for your Intellectual Property has become significantly important specifically in the USA where the competition in the business world keeps increasing day by day. Intellectual Property Insurance has garnered a lot of attention today as companies are constantly being subjected to the ordeal of being targeted by patent sharks. If we go deep into the deets of legal statistics, we find an unprecedented increase in the lawsuits filed against Intellectual Property rights infringers.
IP litigation comes with a lot of troubles for you regardless of whether you are the plaintiff or the defendant. The costs associated with IP litigation can be huge which is why Intellectual Property Insurance is not only crucial but also extremely beneficial. These costs can even bankrupt companies. Intellectual Property Insurance can save you from not only bankruptcy but also from other problems that you might face because of the outflows of huge amounts of money from your bank accounts. These expenses can go up to six figures in the US for small companies and up to eight figures or larger for corporate giants. But! Take a deep breath because this won’t happen to you if you sign up for DEFY’s IP Insurance Policy.
DEFY offers Intellectual Property Insurance that covers everything associated with your IP rights from patents and copyrights to trademarks and trade secrets. It covers all the costs included in the entire litigation against IP theft or infringement in case you are acting as a plaintiff. It also covers all legal defense costs if your company is accused of IP infringement. The two fundamental types Intellectual Property Insurance are:
This coverage protects you from any Intellectual Property infringement claims brought against you. This covers the costs of defense against the claims of IP rights infringement by a third party. It also covers the settlement costs or any financial penalties awarded by the court due to the claim. Defense costs can often be massive depending on the severity of the infringement the defendant is accused of and the complexity of the litigation. This is because when it comes to complex cases, you need to hire experts who might charge companies outrageously.
Abatement Enforcement Coverage
This coverage protects you in case you are acting as a plaintiff. It covers all the legal expenses of pursuing Intellectual Property infringement claims. This incorporates the costs associated with negotiations with the party accused of infringement and defense against a counterclaim made by the defendant. If the party accused of IP infringement alleges the plaintiff of infringing on their rights, this coverage will help you pay for all the associated expenses.
Contact DEFY’s Insurance Agent right now and sign up for our IP Insurance Policy.