Intellectual property insurance
Cover for the cost of pursuing or defending an infringement action, useful because the cost of litigation decides the outcome more than the merits do.
On June 1, 2023, the Unified Patent Court opened its doors: one procedure, one decision valid across all participating states, where until then a patentee had to litigate country by country. Patent litigation became more concentrated, heavier per case and more predictable in cost. That is precisely the variable intellectual property insurance deals with. A patent is worth something only if its holder can enforce it, and a suit runs to hundreds of thousands of euros per instance and per territory. Facing a powerful infringer, a small company gives up because it cannot fund the proof that it is right. The market answers in two forms: pursuit cost cover, which funds the offensive, and defense and damages cover, which protects the company accused of infringement. The line has stayed narrow for a simple reason, adverse selection: buyers look for cover just as they sense litigation coming. Insurers respond with waiting periods and a prior audit of the rights.
The Unified Patent Court opened on June 1, 2023. For the first time, a single procedure produces decisions valid across all participating states, instead of parallel actions before each national court.
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