16th July 2014
Specialist lines underwriting agency CFC has today announced the launch of its new intellectual property product. With a focus on small and medium sized companies, this product can cover the costs associated with a number of intellectual property exposures, not least, infringement.
Speaking about the launch Erik Alsegard, Intellectual Property Practice Leader at CFC said: “All business sectors now face global competition where intellectual property (IP) is seen as a key competitive advantage, whether it is a patent, trade mark or other rights. The importance placed on IP also means that the associated risks are increasing and despite the best intentions any company may face infringement allegations, be it from a competitor or a patent troll. To the same extent, as the owner of IP rights, there is little point in holding on to the rights if you cannot afford to enforce them when necessary.”
CFC’s new product addresses these issues and provides a comprehensive solution which covers not only the costs and potential damages in the defense or enforcement of an infringement action but also the potential loss of a right or a loss of profit. Where a right is lost through a dispute, the costs incurred in obtaining and maintaining the right can be recovered by the insurance. In the event that a company is unable to continue selling its product, it can also cover the loss of profit.
Erik expanded on this point, stating: “With the broad scope of cover available under our new IP insurance, we want to enable our customers to operate in a competitive environment by removing the significant costs incurred if any of the risks come true. Unless you are a very large company, IP litigation and associated costs can harm the balance sheet significantly and potentially prevent trading.”