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Intellectual Property Insurance Services to Offer Increased Policy Limits
Thursday, March 29, 2007
Louisville, KY -- Intellectual Property Insurance Services Corp. (IPISC) announced today that it now has policy limits available up to $5 million per claim and in the aggregate. This is an increase from available limits of $3 million. With new limits of $5 million, IPISC is now more able to provide value to larger companies.
IPISC's core policies, Infringement Abatement and Infringement Defense, provide funds to help companies cover the high costs of intellectual property litigation. Coverage is provided for litigation based upon patent rights, trademark rights and copyright privileges. According to the American Intellectual Property Law Association, average patent lawsuits range from $2 million to $4 million in costs and fees per party (greater than $1 million at risk). Awards and damages are not included in this estimate. "These higher limits allow us to cover a significant risk level that most companies would normally self-insure. The top end of complex litigation and certain damage awards are now within the scope of coverage; in the past, lower policy limits appealed mostly to smaller companies and individual inventors," says Eddie Vetter, IPISC Sales Manager.
The Abatement policy provides funds to an insured to help cover costs as a plaintiff in litigation. The insured would bring suit against an alleged infringer of their intellectual property -- patents, trademarks and copyrights -- to stop (abate) infringement. Although the US Patent and Trademark Office issues well over 150,000 new patents every year, patent holders can only enforce their rights insofar as they are able to afford the prohibitive costs of litigation. Under the Abatement insurance coverage, infringement beginning prior to the inception of the policy, whether known or unknown, is excluded from coverage.
The Defense policy provides funds to the defendant for costs and fees of litigation. Within limits, the policy can also indemnify select damages and awards, as necessary. In expensive IP litigation, companies are forced to defend themselves, no matter how dubious the accusations are against them. Overly broad claims and patent invalidity do not prevent lawsuits.
IPISC is a program manager for NYMAGIC/Gotham Insurance Company, responsible for their Intellectual Property Infringement Abatement and Defense policies. NYMAGIC/Gotham is an A, VIII carrier. The program is further backed by an A++, XV reinsurer. The insurance can be obtained through an independent agent or by contacting IPISC at 800-537-7863, http://www.ipisc.com.
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