Patent Infringement Insurance
Patent infringement insurance is an insurance policy provided by one or more insurance companies to protect either an inventor or a third party from the risks of inadvertently infringing a patent.
For inventors, patent infringement insurance covers legal costs in case they have to sue an infringer to enforce their patent.
For third parties, patent infringement insurance covers their legal costs in case they are sued for patent infringement by an inventor.
Patent infringement insurance is generally considered too expensive to be worth it. The premiums must be high, however, due, at least in part, to the high legal costs of patent infringement cases. A typical patent infringement case in the US costs 1 - 3 million dollars in legal fees for each side. This is despite the fact that 99% of all patent infringement cases are settled. Legal fees in pharmaceutical cases can run 30 million dollars or more, although this should be contrasted with the fact that billions of dollars may be at stake.
In June 2006, a Study for the European Commission on the feasibility of possible insurance schemes against patent litigation risks was published. The report concluded that the continuation of the status quo with very little, disproportionately expensive, bespoke patent litigation insurance (PLI) would not meet any objectives for a feasible insurance scheme. Instead, only a mandatory scheme was considered to be viable in order to provide the economic and technical benefits to the EU and individual patentees which would arise from a widespread PLI scheme.
Read more about this topic: Patent Infringement
Famous quotes containing the words patent, infringement and/or insurance:
“The cigar-box which the European calls a “lift” needs but to be compared with our elevators to be appreciated. The lift stops to reflect between floors. That is all right in a hearse, but not in elevators. The American elevator acts like the man’s patent purge—it works”
—Mark Twain [Samuel Langhorne Clemens] (1835–1910)
“The life of a good man will hardly improve us more than the life of a freebooter, for the inevitable laws appear as plainly in the infringement as in the observance, and our lives are sustained by a nearly equal expense of virtue of some kind. The decaying tree, while yet it lives, demands sun, wind, and rain no less than the green one. It secretes sap and performs the functions of health. If we choose, we may study the alburnum only. The gnarled stump has as tender a bud as the sapling.”
—Henry David Thoreau (1817–1862)
“... business training in early life should not be regarded solely as insurance against destitution in the case of an emergency. For from business experience women can gain, too, knowledge of the world and of human beings, which should be of immeasurable value to their marriage careers. Self-discipline, co-operation, adaptability, efficiency, economic management,—if she learns these in her business life she is liable for many less heartbreaks and disappointments in her married life.”
—Hortense Odlum (1892–?)