Patent Insurance : The roadmap

Abstract

A patent does not in any way prevent infringement. It merely grants a right to sue the intruder. Individuals and small and medium enterprises are often reluctant to pursue their patents in a court of law in case of infringement owing to the time and money involved in fighting a costly litigation battle. A patent insurance policy protects the insured in fighting a legal battle against an infringing company or an infringement lawsuit filed by a rival company depending upon the type of policy. World-wide patent insurance is a lesser known phenomena due to reluctance of insurance companies in offering such types of coverage as the risk involved is high. The present paper underlines the necessity of patent insurance along with features which should be included in a patent insurance policy. The insurance companies would not be in a loss if only non technical risk assessment is done at the commencement  of policy while technical risk assessment should be done only when a specific claim arises and only then the premiums would be affordable by patentee. Every country should make patent insurance policy mandatory for every patentee, which with the advancement of patent insurance industry would move to a voluntary scheme. It is essential to promote innovative culture in a society.