Abatement (Enforcement Coverage) Available for intellectual property (patents, trademarks, and/or copyrights). The policies cover litigation expenses incurred in enforcing the insured intellectual property (IP) against infringers up to the policy limit.

The following material is for promotional purposes only, and in no way changes the terms or effect of the Policy language. Consult a copy of the Policy itself for any specific questions that you may have. The term, “Alleged Wrongdoer(s)” referred to throughout this document shall mean an entity which is or is suspected of making, using, selling, offering, for sale or substantially completing and displaying any process, machine, manufacture, composition of matter, symbol, slogan, mark or work of authorship defined by the IP for which insurance is sought.

What is Infringement Abatement Insurance?

• Infringement Abatement Insurance reimburses you for your LITIGATION EXPENSE when you elect to enforce your patents, trademarks or copyrights (intellectual property) against an Alleged Wrongdoer.
• Infringement Abatement Insurance pays your legal costs when your intellectual property is challenged by a countersuit for invalidity in authorized litigation.
• The policy can be written to cover US and foreign patents, copyrights and trademarks as well as patent or trademark applications including provisional patent applications.

Why do I need Infringement Abatement Insurance?<

• Your intellectual property is a valuable asset. Every act of infringement lowers its value and indeed unabated infringement can render it totally worthless!
• The alternatives to insurance available to you for dealing with INFRINGEMENT are as follows:
• Abandon your intellectual property
• Attempt to license the Alleged Wrongdoer from a position of financial weakness.
• Sue or be sued by the Alleged Wrongdoer and tie up your cash reserves in legal costs
• The first two alternatives are not acceptable as they may result in rendering your intellectual property rights worthless. Also note that an aggressive Alleged Wrongdoer may elect to institute legal actions in the forum of his choice, forcing you to incur huge legal expenses.
• Litigation is expensive! Median litigation costs for an infringement suit through trial can range from $250,000 for copyrights to $2,000,000 for patents for the U.S. as a whole.
• Now with policy limits ranging from $100,000 to $5,000,000 per claim and aggregates from $100,000 to $5,000,000 you can insure that litigation funds will be available when needed.

What are the advantages of having Infringement Abatement Insurance?<

• 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 intellectual property.
• Reduces pressures on the intellectual property holder to settle because of moutning legal expenses.
• “Insured IP” is more attractive to investors who may be asked to fund a business.
• Insurance strengthens the “licensability” of your intellectual property.

What are the terms of the policy?<

• Infringement Abatement Insurance policies can be obtained with limits of coverage of $100,000 to $5,000,000 per claim and $100,000 to $5,000,000 aggregate.
• In most case, the policy reimburses you for 80% of your legal costs until the per claim limit of your policy has been reached. Minimum self-insured retentions are 2% of the per claim limit. Higher options available.
• Infringement Abatement Insurance is written on an annual basis. The policy is issued as property coverage and the acts of the Alleged Wrongdoer must begin after the policy is in effect but may have begun during a previous continuous policy period with the Company within which the intellectual property to be sued upon was included.
• The Insured controls the conduct of the litigation in that:
• The Insured selects the counsel of his choice, subject to Company approval;
• The Insured dictates the settlement terms if any, not the Company.
• The Insured may invoke the policy by 1) notifying the Company of the discovery of INFRINGEMENT and other relevant facts by completing a claim form provided by the Company; and 2) providing the Company with a favorable opinion letter from an intellectual property counsel regarding the issues of enforceability, validity and INFRINGEMENT. Upon compliance with the policy terms, the Company will then authorize the suit and the policy will begin to reimburse the Insured for his LITIGATION EXPENSES.

How much does it cost to protect my intellectual property?<

• The actual cost per intellectual property will vary according to the type and subject matter as well as many other factors. All premium quotes are given only after an application has been submitted for insurance.

How is the premium paid?<

• The premium can be paid annually or it can be financed over a nine (9) month period with as little as 20% of the premium (plus any applicable taxes) as down payment.

How can I obtain a quote?<

• Simply complete the appropriate online application form and submit it. You are under no obligation.

© 2006 Intellectual Property Insurance Services Corporation 9720 Bunsen Parkway, Louisville, Kentucky 40299 (502) 491-1144