Intellectual Property Insurance Webinar Q&A Follow Up

We had so many great questions come in during our Intellectual Property Insurance webinar earlier this month and the speakers were gracious enough to spend some time putting together answers to some of those questions we were unable to address live.

1. Briefly discuss IP exclusions on the Cyber form.

IP related losses are generally excluded from Cyber coverage.

However, some carriers are willing to cover losses relating to contractual indemnity obligations in the event that an Insured loses a third party’s trade secret information due to a cyber incident.

2. Can you talk specifically about policies designed to cover only trademarks? Many small companies have logos and firm names similar to larger unrelated companies and want protection from litigation.

A good defensive IP policy is designed to be flexible and is customized for each buyer so that it covers only what the Insured wants to protect.  For example, a company that wants to protect certain brand-related IP assets can schedule only those assets and thus customize the defensive IP policy to apply exactly to what they are trying to protect.

3. Insured is selling a water bottle on their website that they co-designed and imported from Chinese Manufacturer. Being accused of patent infringement for water bottle design. 

What type of policy do they need to protect them against claims such as this? 

They may be able to protect against catastrophic loss in the ongoing suit by purchasing a specific contingency policy. A defensive policy will provide protection against future infringement claims.

4. Is there still a typical “vetting” fee upfront before firm quote can be received?

There are carriers available that can usually provide an initial quote without charging a fee, However, when special protections are requested, such as defense against claims of trade secret misappropriation, an initial underwriting fee may be required.

5. Do you need a lawyers confirmation there is no infringement before insuring?

No, IP underwriters typically rely on in-house analysis and bring in outside counsel on an as-needed basis.

6. What about indemnity to a customer for infringement claims he may face from use of a product?

A defensive IP policy protects an alleged infringer against such claims.  The entity that is concerned that they will be alleged to infringe can obtain a defensive IP policy to protect itself or can request a contractual indemnification from their suppliers.

A component of a good defensive IP insurance policy is a contractual indemnification backstop, which can protect such a supplier from losses related to such contractual indemnity obligations.

In conclusion, there are two ways to solve for this problem, both of which allow for risk transfer through a defensive IP policy.

7. How often do the carriers get involved in the valuation of the IP? How/how often?

Underwriters of defensive IP insurance are concerned with the potential losses that will be covered by such a policy, including defense costs, damages from infringement claims related to products or services, and contractual indemnification obligations.  While damages from infringement claims related to products or services require an understanding of the value relating to such products or services, defensive IP underwriters do not value IP assets.

Residual value insurance is a different type of IP insurance that was not the subject of this webinar.  Residual Value underwriters will conduct an exercise to value IP assets as part of their underwriting process.

Did you miss the live webinar? PLUS members can access the on-demand recording here.

Thank you again to our speakers!

Dan Auslander headshot

 

Dan Auslander
Director of Marketing & Development at Ambridge Partners

 

 

 

Sean Doyle headshot

 

Sean Doyle
Intellectual Property Counsel at Ambridge Partners

 

 

 

Douglas Kine headshot

 

Douglas Kline
Partner, Chair IP Litigation at Goodwin

 

 

 

Jason Sandler headshot

 

Jason Sandler
Vice President at Marsh FINPRO

January is PLUS Webinar Month

At PLUS HQ we are very excited about two fantastic webinars on tap for this month. Both are free, and promise to bring you the insights and perspectives you expect from PLUS’ educational content.

The first one is scheduled for Tuesday, January 12 at 11 a.m. ET…

What’s Next on the Alternative Asset Manager Risk Horizon
Moderated by Elan Kandel, with panelists Dennis Krause, Neil Lipuma, Machua Millett and Mark Reilly
With equity markets experiencing significant volatility triggered by investor concerns about China’s economy and other uncertainties, investors are increasingly looking to “alternatives” to traditional stocks and bonds to round out their portfolios. Such alternatives include family offices, hedge funds and private equity funds. This webinar will explore the emerging risks and exposures for asset managers in these alternative investment spaces. Register Now

Then, on, Thursday, January 21 at 11 a.m. ET…

Kevin LaCroix Presents the Top D&O Stories of 2015
Based on his popular blog post, The Top Ten D&O Stories of 2015, Kevin LaCroix, RPLU, will discuss the big stories and trends in D&O insurance over the past year. As one of the recognized thought leaders in the industry, Kevin’s insights and perspectives will provide attendees with the knowledge they need to succeed in the highly competitive D&O Insurance marketplace. Don’t miss it!

Again, both of these events are completely free. Don’t miss them – register for one (or both) today!

Sheryl Sandberg on Gender in the Workplace

In a recent interview published in the Wall Street Journal, Facebook COO and author Sheryl Sandberg discussed, among other things, the role of gender in the modern workplace.  The interview was conducted by Walt Mossberg and Kara Swisher of All Things Digital.

Women and Work

MR. MOSSBERG: There are a lot of industries and there are a lot of different governments and social structures that have a gender imbalance, but what about tech?

MS. SANDBERG: The industry numbers range from 11% to 21%, but basically every industry has the same problem. People think it is tech or finance; it is not. Every industry is overwhelmingly led by men.

MR. MOSSBERG: But you work in the tech industry, so what have you observed about it?

MS. SANDBERG: Every industry has the same problem. The tech industry has one particular challenge, which is more women going into STEM [science, technology, engineering and mathematics] fields and particularly computer science. If we got women at the same percentage as men into computer science, you would halve or potentially close the gap in the computer scientists needed right now in our country.

MS. SWISHER: You have gotten a lot of attention for it, the goal would be to bring attention to it, but how do you solve it?

What happens after leaning in?

MS. SANDBERG: The specific thing that I want to do is to make it OK to talk about gender in the workplace and educate people on how gender holds us back.

For more on this important topic, don’t miss the free PLUS Webinar, “Lean In: Engaging Women to Pursue Their Ambitions,” Thursday, August 15 at 11 a.m. ET.