This was a presentation by Ian Wishart, an experienced patent attorney, who is also a director of an insurance company that specializes in insuring against the costs and consequences of intellectual property infringement litigation. Mr Wishart presented his paper to Ideas North West in Accrington on the same occasion that I gave my paper on IP enforcement without going bust. In this paper he discussed some of the policies that his company can arrange.

1. IP Insurance
What it is and why it is relevant to my business
Ian Wishart
Chartered Patent Attorney European Trade Mark Attorney

2. • Normal business insurance excludes legal costs
relating to Intellectual Property disputes
• Some insurers are willing to cover various IP legal
costs:
• Defence costs if you are sued
• Pursuit costs to pursue an infringer of your rights
• A VERY few will even cover awards of damages
against you

3. • It is essential to recognise that to benefit YOU
MUST HAVE SOME FORM OF IP OF YOUR
OWN otherwise the insurer will not provide
cover
• At the very least, this can be:
• A patent, trademark or design application
• Or rights in unregistered
trademarks, designs, database
rights, copyright, software copyright etc

4. • Another issue is the area of technology or
business, as some are much more prone to
disputes than others. (Therefore, insurers will
charge more, or in very rare cases decline to offer
cover.)
• And ambitions to enter the North American
market must be viewed cautiously. USA has a
history of active litigation and very high legal
costs (plus the possibility of exemplary
damages, up to triple damages!) Patent trolls are
also active in USA.

5. • Cobra Legal & IP is a specialist insurance broker located in the
centre of London’s insurance district centred on Lloyd’s.
• All employees have legal qualifications and two have extensive
hands-on IP experience
• Although we do have several large company clients, we specialise in
helping British SME’s meet their insurance needs. Several of our
recent clients have been start-ups with inventions with major
world-wide potential. We have found that there is interest in
getting IP insurance either as part of a financing process or to help
in licensing.
• As well as having access to Lloyd’s syndicates, we have developed
three exclusive insurance policies in conjunction with major
insurance companies:

6. • There are three main standard approaches, or
tiers of insurance protection:
• 1. Up to £25k for the provision of a barrister’s
opinion
• 2. Up to £100k for a case to pursue an
infringer in IPEC – UK only
• 3a. £100k, £250k (or upwards) for pursuit
cover and/or defence cover in any court
• 3b – damages cover can be added

7. • We can bespoke the protection because of our
personal relationship with the insurers and
underwriters – for example we have recently
offered $10M cover for costs of being sued to
an international rock band – the largest
amount ever offered to a band

8. • Examples of technologies that we have covered or
quoted for:
• Cooking equipment
• Trademarked human fertility equipment
• Erosion prevention for offshore wind farms
• Pipeline joints
• Trademarked outdoor clothing
• Coarse fishing equipment
• Boxer’s training equipment
• Staff management software
• Orthopaedic chair

9. Other services
• Cobra can arrange:
• Litigation funding for cases with good
prospects
• “ATE” or “After the Event” insurance if you do
not have normal “Before the Event”
insurance, primarily to protect against having
to pay the other side’s costs if you lose

10. Any questions?
Take questions now or at:
iwishart@cobralm.com
See ip-insurance.com