In the digital age, the most valuable asset many companies have is their intellectual property. Just as businesses have learned the importance of insuring their physical property, equipment, and employees, an increasing number of companies are using IPR insurance to protect their ideas. Intellectual property insurance is especially important for companies that develop or depend on technology.
The Importance of IPR Insurance
IPR insurance can give companies the ability to invest in their most important property. Google generates billions of dollars of revenue each year, much of it produced by the algorithm that powers their search. On paper it’s merely lines of computer code – strings of numbers, letters and characters – but hundreds of millions of dollars of research and testing have gone into creating Google’s search engine. Without intellectual property protection they would be unable to invest in their code for fear another company could steal their work and profit from it. Intellectual property insurance can help businesses ward off IP theft and lawsuits from competitors.
It can be hard to prove ownership in the digital realm. Unscrupulous individuals and business sometimes try to take advantage of these grey areas, launching allegations against competitors. Companies with IPR insurance might be less likely to be targeted for baseless lawsuits because their intellectual property insurance coverage could enable them to fight lawsuits, and may even pay the majority of the damages should the case be lost. Intellectual property insurance also could help minimize damages from honest mistakes. There is a great deal of misunderstanding about copyright on the web. The usage of outside agencies can also complicate things. It is not uncommon for a company to hire a web design firm who uses a copyrighted image in their design. The business remains unaware of this infringement until they are sued by the image’s owner. Without IPR insurance these suits can be extremely costly, and even bankrupt a business.
Intellectual Property Insurance and Your Company
Intellectual property insurance could protect your company’s proprietary assets. Infringement of copyrights, trademarks, and patents can all be covered by IPR insurance. Without proper safeguards in place it is possible for competitors to steal your ideas, your code, your designs, your research, and even your name. Some intellectual property insurance coverage even helps companies prosecute those who are infringing upon their property. While it’s essential to own the legal rights for your most valuable assets, you have to be willing and able to defend them. IPR insurance could give you the tools to do just that.