Patents can be valuable intellectual property, and patent holders should take steps to protect that intellectual property. One way that patent holders in Massachusetts can protect their inventions is by purchasing patent insurance.
Patent insurance is a specialized form of intellectual property insurance that’s designed to mitigate patent-related risks. Because this is such a specialized insurance, patent holders should work closely with a knowledgeable insurance agent when comparing coverage options.
Patent policies can be generally categorized into two distinct groups depending on their protections.
Patent litigation insurance normally acts as intellectual property coverage for patent holders. Should a patent holder have to sue another party for patent infringement, this type of patent policy may help cover legal costs associated with the lawsuit. The coverage can be essential to recouping business losses in the event of infringement.
Patent infringement insurance normally acts as a liability coverage for businesses. Should a business be accused of patent infringement, this type of patent policy may help cover legal costs associated with the suit. A policy might help pay legal defense fees, a settlement or other associated expenses.
Because these two types of policies provide different protections, businesses often are well-served by getting both patent litigation insurance and patent infringement insurance.
Many Massachusetts businesses can benefit from the protections that a patent policy offers, including both those of a patent litigation insurance policy and a patent infringement insurance policy.
Any individual or business that holds a patent may want to purchase patent infringement insurance for their invention. Knockoffs and derivative works are increasingly common, and this insurance might help protect against these risks.
Any business that creates or makes products may be interested in patent litigation insurance. Patent infringement claims are also becoming more and more common, and having insurance can be an effective way to shield a business against many covered potential claims.
Commercial property insurance generally provides a host of protections for assets that a business owns, but most commercial property policies are focused on tangible assets. These policies typically don’t extend coverage to intangible intellectual property, such as patents.
Therefore, purchasing a patent policy is often important even if a business has commercial property coverage.
Although patents themselves provide inventors with specific protections, these protections sometimes aren’t enough for small and medium businesses to defend their patents. Patent infringement lawsuits can cost millions of dollars, and businesses that can’t afford those costs may have difficulty defending their intellectual property.
Patent policies might help businesses pay legal costs associated with covered infringement lawsuits. Because these suits can be so expensive, it’s often important to purchase a policy with substantial limits. An insurance agent who specializes in this type of coverage can help patent holders decide exactly how high their limit should be.
Premiums for patent policies are based on a variety of factors, such as a business’ industry, number of patents and coverage limits. Even with variance in policy premiums, this type of insurance tends to be affordable for businesses that hold patents. It’s almost certainly more affordable than what a length patent infringement lawsuit could cost.
For help finding patent insurance in Massachusetts, contact the independent insurance agents at The Feingold Companies. Our insurance agents can help assess your business’ need for both patent litigation insurance and patent infringement insurance, and we can assist with finding either or both types of policies.