Intellectual Property Insurance Cost
Let's take a closer look by specific type of insurance:
Patent Infringement Defense Insurance:
This is protection in the event your product is accused of infringing someone's patent(s). The cost depends on many factors but the most relevant are:
- the number of products insured
- the industry in which the products are sold
- the coverage territory (US only or world-wide)
- the coverage limit of liability
(Under certain circumstances the rate can be as high as 3%).
Patent Enforcement Insurance:
This provides the money to a patent holder to enforce their patent(s) rights. Like defense insurance there are a number of factors which determine the cost but most relevant are:
- the number of patents to be insured
- the coverage territory (US or world-wide)
- the coverage limit of liability
Trademark Infringement Defense Insurance:
Trademark disputes are typically less expensive in terms of litigation costs than patent disputes therefore the cost of insurance is less. The cost is between 1/2 and 1% of the limit of liability. The cost factors are similar to the patent coverage.
Trademark Enforcement Insurance:
Again, trademark disputes are less expensive than patent disputes. The cost is between 1/2 and 1% of the limit of liability.
Note: There is not a large price difference between the insurers that write this insurance. While from a cost standpoint it can be beneficial to "shop around" for insurance on property and automobile because they are, in essence, commodities with almost identical coverage this is not true with IP insurance. When comparing quotes the major difference will be found in the coverage provided not the price.
For additional information please visit my website at Patent Infringement Risk
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