The value of intangible assets increased by 8% in 2023 to $61.9 trillion, as inventors and creators worldwide seek exclusive rights to reap the benefits of their works. But there are two sides to this story. While intellectual property (IP) is playing an increasing role in the business world, businesses are becoming more vulnerable to new and evolving risks.
Step forwards IP insurance. Now seen as a vital part of risk management, many are turning to IP insurance for the protection—and confidence—to navigate this ever-changing landscape. Read on for five top reasons why the time is now for IP insurance.
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IP assets are vital to modern business
Be it patents, trademarks, copyrights or trade secrets, IP is now a significant asset for many businesses. Start-ups and SMEs in particular use IP as a foothold to gain market share and stave off competition, leading to heavy investment in both developing and protecting IP assets.
As the value of these assets continues to grow, so do the risks. From infringement claims to challenges of ownership, businesses need confidence that their ideas will be protected effectively and fairly. Just as you wouldn’t leave physical assets with high value uninsured, intangible assets need protection too.
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IP disputes are everywhere
Markets are becoming more competitive and global, driving the number of IP disputes. Today, businesses can face all sorts of challenges from patent trolls and aggressive competitors to complex legal landscapes, raising the possibility of litigation action—both for businesses defending their IP and those facing an infringement claim.
IP insurance provides a financial safety net in the event of a dispute. By covering legal expenses and potential damages, businesses can help mitigate the risks of costly litigation, empowering them to operate with confidence.
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Awareness for IP risks is growing
Considering IP’s growing role as a business asset and the IP disputes making headlines, it’s no surprise businesses and investors are becoming more aware of the risks associated with IP—including the financial implications of infringement claims and lawsuits.
Nobody wants to think about making or facing a claim. But businesses simply can’t afford to leave their IP unprotected. This need is driving demand for insurance products that specifically address risks and provide protection against unforeseen legal expenses.
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IP markets are expanding
In this globalized world of multinational corporations, there’s a growing need to manage and protect IP assets in multiple jurisdictions, each potentially with its own set of rules and ways of doing things.
This creates a more complex and costly endeavor compared to portfolios relating to a single legal system, raising the need for specialist support. As such, demand is growing for insurance products that cover different regions and legal systems.
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Insurance is evolving to keep pace
The IP landscape is changing fast, surfacing new risks for businesses everywhere. It’s vital that IP insurance matches this pace of change, by evolving to offer the broader cover that businesses need.
At CFC we’ve designed a comprehensive IP insurance product that covers defense (incoming claims) and pursuit (outgoing claims). It features IP right protection coverages including invalidation, opposition and title rights, and ensures businesses have full protection right to the end by covering loss of IP rights and loss of future profits.
There’s never been a better time for IP insurance
The rise of IP insurance is not down to one factor alone. It’s more a response to converging trends, designed ultimately to empower businesses to protect their intangible assets the same way they do their physical ones. Only with comprehensive protection from a proactive insurance provider can businesses get the peace of mind to continue investing in IP creation, to not just survive but thrive in this ever-changing world.
Find out if IP insurance is right for your business in this quick read.
