Patent Insurance Cost: Everything You Need to Know
Patent insurance cost is often high but worthwhile for new businesses to avoid risks.3 min read
What Is Patent Insurance?
Patent insurance is coverage from patent infringement lawsuits when they are filed against a company. Standard policies could cover some of the needs, but patent insurance takes on the rest if there is a gap between the two.
What Is Intellectual Property Insurance?
This broad form of coverage works well when lawsuits are filed against companies for any patent-related reason, including intellectual property infringement of any kind. Both offensive and defensive patent and intellectual property insurance give companies the best protection possible. Startup businesses find intellectual property a huge topic to hurdle. New businesses find the questions confusing with the law reforms, patent trolls on the hunt, and content syndication. Insurance is a good way to curb risks, and there are plenty of policies that can help.
Defensive and Offensive Policies
Patent insurance allows companies to have offensive or defensive capabilities, unlike personal, media, or advertising liability insurance. Defensive policies act like regular insurance policies in that they allow the company protection when they have to defend themselves against a claim. Offensive policies, which are also called pursuit and abatement policies, cover costs if a company has to pursue another entity for infringing on a patent. Having both offensive and defensive patent and intellectual property insurance give companies the best protection possible.
Specialty Policy Limitations
While IP and patent insurance has a high price on it, there are not very many limitations. The limits are enough to scare some new companies away, but those that look into the opportunity close enough often see that the benefits outweigh the risks.
- The policy costs range from $50,000 for limits as high as $1 million.
- The long underwriting procedures can take a lot of time.
- More carriers are getting into the market so pricing and underwriting are starting to come down, but this insurance is hard for new companies to grab with time and money flow limitations.
IP Enforcement Insurance policy of IPISC's Collateral Protection Insurance (CPI)
There is quite an advantage to copyrights, trademarks, patents, and IP rights within a company. They are not just policies that a company holds and may never need. The value can be monetized in the future, which can allow a company to grow. The IPISC Collateral Protection Insurance, otherwise known as CPI, can ensure the value of your IP rights for a number of years, which generally span up to three. The policy you hold along with your original IP are both financial assets that can help you get a loan by way of collateral. Companies don't have to give you equity to obtain funding when they use extra interest on the loan through the CPI premiums and fees.
RPX Offers Cost-Effective Patent Insurance for Emerging Companies
Companies interested in patent insurance need to know the costs and locations for such policies. RPX offers a number of options at cost-effective prices so new companies can enjoy the safety and security of insurance at a price they can actually afford. Many companies enjoy working with RPX because:
- RPX Insurance Services LLC offers a backup plan from Lloyd's of London.
- RPX holds an A rating, which is the highest option, and stands for excellent.
- RPX allows policyholders to manage the cost of doing business against possible threats that could come along.
- Any company in any state can get the coverage they need.
Advantages to Getting Patent Insurance Coverage
New companies could face large consequences based on the patent demands that are in place today. Litigation coverage for patents includes cost-effective insurance for companies that are new to the scene.
NPEs are also sometimes called patent trolls since they bring up the most patent litigation. Lawsuits filed by NPEs has increased in large numbers in recent years, according to a survey done by the National Venture Capital Association and the cost of these preparations can go well over $50,000 per case. Some companies have spent millions of dollars, and that doesn't even include the internal time they spend on the case.
Companies can complete an easy online application in a matter of minutes. Applications get responses quickly, and RPX could begin coverage in a matter of a few days.
If you need help with patent insurance, it is easy enough to contact the senior vice president of RPX Insurance Services by calling 866-779-7641 or sending mail to RPX Corporation, One Market Plaza, Steuart Tower, Suite 800, San Francisco, CA 94105.
If you need help with patent insurance costs, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.