Recovering your investment

Multi-Peril insurance is available to any company or individual with an insurable interest in their intellectual capital. The policy provides first party coverage for losses incurred as a result of an unsuccessful attempt to defend or enforce in an IP infringement suit.

There are several reasons to carry Multi-Peril Reimbursement Insurance:

• To cover losses resulting from an unfavorable outcome in intellectual property litigation, whether you are the intellectual property holder or the accused infringer;
• To increase the likelihood that your business is able to stay afloat after an unfavorable judgment; and
• To increase the attractiveness of your technology to potential investors.

Multi-Peril Reimbursement Insurance protects your substantial investment in the products that you offer and the revenues they produce. It pays you directly in the event you are involved in an intellectual property lawsuit and lose.

The Multi-Peril policy responds after the final adjudication of a Civil Proceeding that directly caused the loss of value. The Civil Proceeding (i.e. the precursor to loss of IP value) must be initiated during the policy period. The corresponding Abatement and/or Defense policies are required. Please review the policy specimen and consult with your professional advisor for all of the details.

Request a policy specimen and application.

The policy provides coverage for losses incurred relating to IP, including the IP’s value. The coverages are described below and may be chosen individually or collectively:

• Loss of Commercial Advantage: If the insured IP is declared to be invalid, the policy pays the loss of the additional increment of business income which was enjoyed while the IP was in force, for a pre-established period of time.
• Business Interruption: If you suffer a preliminary injunction due to a suit filed against you for IP infringement, the policy pays for the loss of business income resulting from interrupted sales for a pre-established period of time; or, if you lose a Civil Proceeding charging that your products infringe the IP of another, the policy pays for the loss of business income for a pre-established period of time.
• Loss of Ongoing Royalties/License Fees: The policy pays the loss of profits, for a pre-established period of time, if you lose royalties/license fees because:
  • You have a preliminary injunction granted against you or a licensee;
  • Your IP is declared invalid in a Civil Proceeding;
  • You lose on infringement issues in an IP Civil Proceeding;
  • A license is wrongfully terminated, abandoned or suspended; or,
  • You suffer a non-appealable finding of inequitable conduct or patent misuse of licensed IP.
• Loss of Benefit of Research & Development: The policy reimburses the insured a pre-established declared value of research and development of monies spent if:
  • Your patent is declared invalid;
  • You lose an interference proceeding;
  • There is a finding of patent misuse against you;
  • There is a finding of inequitable conduct against you; or,
  • There is a loss of benefit of research monies spent due to a Hatch-Waxman Act proceeding.
• Loss of Covered Intellectual Property Portfolio Value: The policy pays a pre-established declared value should you:
  • Have your IP declared invalid;
  • Lose an interference proceeding vis-à-vis covered IP; or
  • Suffer a non-appealable finding of inequitable conduct or patent misuse.

  This coverage can serve as the basis for writing IP on your balance sheet as an asset for its insured value, even though the IP was developed in-house.

• Cost of Redesign, Remediation & Reparation: The policy reimburses the insured the actual cost of redesigning, retooling or disposal of infringing manufactured products, marks and works, as well as shipping and restocking with non-infringing products, marks and works, as well as renaming and/or redecorating of business premises and the rebuilding of goodwill of distributors, retailers and customers which are necessitated because:
  • Your covered IP is invalidated;
  • You lose a Civil Proceeding charging you with infringement vis-à-vis your manufactured products, marks and works;
  • You lose an interference proceeding; or
  • You suffer a non-appealable finding of inequitable conduct or patent misuse.
• Loss of Trade Dress Identity: The policy reimburses you for loss of business income caused by the loss of a Civil Proceeding that enjoins you from continuing its use.
• Loss of Trade Secret Advantage: The policy reimburses you for loss of business income caused by the unauthorized disclosure of trade secrets which were protected by confidentiality and nondisclosure agreements and/or were held on deposit with a technology escrow service for insurance verification purposes.