Intellectual Property Rights
An increasing number of companies/inventors think not only about how they manage their intellectual rights but also how they can insure their intellectual rights, as continued globalization lead to expansions into new territories, which may result in infringement of patents or other intellectual rights in these new territories, regardless of non-infringement in the existing markets.
The cost of intellectual property rights litigation can be astronomical. Intellectual property litigation can pose a real threat to the company itself. Furthermore, the risk that a given company will be involved in some form of intellectual property litigation continues to increase, as more and more companies rely on intellectual properties, as the IP is an essential asset.
Intellectual property insurance may not make sense for every company. For the small technology company, probably having an intellectual property portfolio as its most valuable asset, or for the new competitor trying to break into a market in which aggressively enforced intellectual property rights are the rule rather than the exception, the right level of insurance protection may mean the difference!