Intellectual Property

Intellectual property (IP) has become most companies’ most significant asset, yet adequately managing risks related to intangible assets, including intellectual property, can be a challenge.

The scale of companies’ IP is growing. Recent data suggests that the shift from tangible to intangible assets continues, with up to 90% of the market value of S&P 500 companies comprising intangible assets. In today’s economy, the protection of these assets is a concern for those looking to protect their growth, revenue, and business resilience.

Defined as ‘creations of the mind’, IP includes patents, copyright, trademarks, design rights, trade secrets, and domain names. It is not only key in building and growing revenue streams but is also a differentiator providing the company with a competitive edge to its business.

IP infringement can profoundly affect businesses, industries, and economies. Disputes over the ownership or scope of IP are frequent, with economic turbulence causing companies to act more swiftly to protect their IP. In addition, claims activity from non-practising entities is increasing, often bolstered by litigation funders willing to assume the risk and expense of litigating these disputes.

Protecting your intellectual property

Traditional insurance policies designed to protect physical assets against perils are unlikely to protect intangible assets.

Working with key Lloyd’s and London markets, our specialist IP team provides focussed insurance solutions that bridge the gap where traditional policies might not meet client needs in protecting the value of the IP of a company, or providing sufficient protection for defending infringement claims. Our team works with various industries where traditional policies are unsuitable, for example, by covering defence costs only, eroding limits intended for other types of loss, or excluding patents.

For clients who may be looking to broaden the coverage available to protect their IP, there are insurers who generally have an appetite for the following industries:

Technology, including fintech and greentech
General manufacturing
Media and entertainment
Fashion
Medical devices
Professionals, including architects and engineers
Renewable energy
Oil and gas
Food processing
Automotive

Other industries, such as pharmaceutical and semiconductor companies, can be considered on a case-by-case basis.

IP infringement insurance is designed to protect companies from an allegation of IP infringement and provide protection against financial losses in connection with an infringement. The policy can be tailored to cover all the IP of a company or to cover named IP, or a specific contract.
IP pursuit cover can be included within a standard IP infringement policy. It is available to SMEs only and can provide cover for the substantial litigation expenses incurred in enforcing a company’s IP rights.

Standalone IP policy cover includes numerous benefits for companies:

Specialist cover that enables better risk control and mitigation by focussing solely on IP risk.
Global coverage, available to companies domiciled and operating anywhere in the world.
Allows cash reserves formerly earmarked for litigation costs and damages to be freed up and used more productively.
Protects the financial statement and shareholder value against the impact of large uninsured IP losses.
Flexible scope of cover that can protect discrete or entire portfolios of owned and/or licensed IP.
Additional first party covers such as reputational and brand protection, withdrawal costs, and loss of profit.

Intellectual Property

Protecting your intellectual property

Our expertise and solutions

Edison Intellectual Property