Probably you are aware that some intellectual property insurance covers you for your alleged infringement of someone else’s IP property. It covers your legal defense and your liability should you be found to be at fault.
However, there is a new type of IP insurance for the initiation of a case against an infringer of your IP property, where you are the plaintiff—not the defendant. The beauty of this insurance is that it gives you resources that you may not otherwise have to protect your IP property, and allows you to act quickly. It is called “intellectual property abatement/enforcement” insurance.
One caveat is that if you win the case, some of these policies may require you to reimburse the carrier for the cost of the litigation (although not all policies require this). This reimbursement obligation is triggered when you receive any type of benefit as a result of the case—not just a financial benefit. For example, if your case won an injunction that stopped the infringer (but didn’t recover money) then you obtained a benefit, and you would need to repay the carrier for what it paid for the prosecution of the litigation.
These policies can be a difference maker for small companies who otherwise cannot afford to fully litigate. They can: