Intellectual Property Risk & Patent Defense Insurance
At HCP National, we provide appropriate insurance coverage to protect your patent, copyright, or trademark from infringement suits. Here are facts to consider, regarding Intellectual Property Infringement Coverage:
- The median damage amount paid for infringements is over $5 million.
- According to the American Intellectual Property Law Association, litigation costs for taking a patent case to trial – where over $25 million is at stake – average $5 million per side.
- Hourly rates for patent litigators remain high; a federal court recently ruled that $630 per hour for experienced patent trial counsel was reasonable. Many IP attorneys charge excess of $1,000 an hour.
- Primary Defense and Abatement coverage is available for Patent Defense/Intellectual Property Insurance Coverage. HCP National can also assist you in finding Intellectual Property Risk Defense excess coverage/reinsurance as well.
- Patent Troll defense insurance policies are also available, as the majority of the suits filed are of this nature.
- One of our insurers offers the ability to select your own IP defense attorney and will cover your attorney’s prevailing billing rate.
- Infringement Defense Coverage: provides cover when a claim asserts you took someone else’s Intellectual Property. It will provide an attorney and cover the legal costs to defend you.
- Patent Troll Coverage: provides Patent Troll coverage only. Patent Trolls generate their revenue through enforcing their patent rights. The majority of the claims for IP litigation are Trolls.
- Abatement Coverage: The insurer will pay your expenses to pursue a legitimate infringement.
- Minimum Deductibles: $25,000 and coinsurance apply.
- $10 million aggregate, Limits of Indemnity, and higher are available.
- Defense can/may be offered outside the limits.
- Worldwide coverage is available.
2 to 6% of the limits (i.e. $2,000,000 limit – $40,000 to $60,000)
Underwriting Risk Review
In the past, there were significant fees associated with obtaining quotes for coverage. Now there are three insurance companies that do not charge to obtain quotes. The underwriting criterion consists of undertaking an assessment and evaluation of the applicant’s products and supporting Intellectual Property Rights.
Guide to Patent Defense Insurance
See our Guide to Patent Defense Insurance on the Huffington Post here.