The Abatement
policy reimburses litigation expenses to enforce intellectual property rights
against infringers as well as countersuits or post-grant reviews for
invalidity. In the event the insured loses the IP lawsuit the Abatement policy
responds as a pure insurance policy. In
the event the insured wins the IP lawsuit and has recognized an “Economic Benefit”
the insured reimburses only the money paid out by the insurer and retains any
additional recoveries. Repayment of
the “Economic Benefit” reinstates policy limits and those funds are then
available to pursue other infringers. IP covered under the Abatement Policy includes patents, trademarks,
copyright and trade dress.
Advantages of holding the abatement policy:
·
Prevents loss of market share by timely and forceful
response to infringement
·
Prevents unexpected cash drain on operations
·
Provides litigation funds to optimize a favorable
decision for the IP holder
·
Reduces pressures to settle because of mounting
legal expenses
·
Attracts investors who may be asked to fund the
business
·
Strengthens the "licensbility" of the
IP
Premiums:
·
The premium will be about 1 to 2% of the limit
purchased. For example, the premium for a $1,000,000 coverage limit at 1% would
be $10,000 per year
·
The actual cost will vary according to the type
and number of IP covered
This material is
for informational and promotional purposes only, and in no way changes the
terms or effect of the policy language. Consult a copy of the Specimen Policy
itself for all terms, conditions and exclusions. For additional information
please contact:
Alex Fjelstad
Senior
Vice President
Twin
City Group
4500
Park Glen Road
Minneapolis,
MN 55416
952-924-6910
or afjelstad@twincitygroup.com
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