Tuesday, March 16, 2010

Issues in Intellectual Property Insurance

To enhance the value of the assets, intellectual property owners should focus on the following points.During formulation of strategies to get maximum benefit from protocols available to the company are properly secured is a very important step that should be taken into account.

What insurance will litigation against your company trigger that benefits its interests? What new forms of insurance are available to IPOs that will expand opportunities to transfer litigation costs to their insurers? What claims are asserted in litigation that might implicate your opponent's right to a defense and/or indemnity covered by their insurance?Where no notice was provided to insurers of significant intellectual property lawsuits, was constructive notice provided to insurance brokers as well as insurers through the submission of 10-K reports that referenced litigation? Was the insurance broker who received constructive notice the general managing agent for the insurer such that notice to the broker can be deemed notice to the insurer?Can an insurance coverage audit reveal hidden opportunities to recapture monies paid for defense fees and settlements and/or judgments under existing insurance policies (e.g., is there "buried treasure" in previous insurer denials of tendered intellectual property claims)? Given the exposure revealed by a review of past coverage opportunities, is the present insurance portfolio properly attuned to risks the company now confronts? Can knowledge of insurance coverage help corporations reallocate risks arising from licensing activities to better assure against risks posed by defaulting or underperforming licensees? Is the company's existing coverage for corporate counsel adequate, and can new efforts be taken to track corporate litigation, monitoring costs to better preserve their recapture as part of their insurer's defense obligations? Does the company's history of acquisitions, joint venture relationships, and other forms of corporate interaction expand the coverage opportunities available to it in a manner that requires revisitation of the potential for coverage under previously filed and existent lawsuits?
Though the Insurance of Intellectual Property is growing concern for the developing countries. But it is a very important specially to  the developed economy like US. Now the US economy is ranging around 13 Trillion Dollar, Japan 4 Trillion Dollar while India is just 1 Trillion Dollar.The issues of IPR Insurance is not a serious matter in the countries which are less efficient in IP assets.  Keeping in mind the fact that the 45% of US economy is of intellectual Property and around 50% of total export of US is comprises of Intellectual Property the issues of IPR insurance should taken very seriously and the above quoted points should be properly analysed to maintain the proper growth and development in the field of IPR.

Dr.Tabrez Ahmad,
Associate Professor of Law, KIIT Law School
KIIT University, Bhubaneswar, Odisha, India, 751024.
Website: www.site.technolexindia.com
Blog: http://tabrezahmad.technolexindia.com http://iplexindia.blogspot.com
Profile: http://www.google.com/profiles/tabrezahmad7.
Blogs: http://www.blogger.com/profile/15337756250055596327
Blog: http://drtabrez.wordpress.com
Research Papers: http://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=1189281

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