You may have heard me say “a patent gives one the right to sue”. Once you have a patent, you have the grounds to sue others who you believe are infringing upon it. However, having your product patented does not mean others are barred from suing you with allegations that your patent is infringing upon theirs. No matter how well a patent is crafted, if you are sued you will need to mount a legal defense with a qualified patent attorney.
Since patent cases are complex, the costs mount quickly, with average litigation costs ranging from $700,000 to $4 million dollars. Could you afford the fight?
One solution is patent insurance. A patentholder can buy an insurance policy that will provide money to defend their patent. They can buy a legal war chest ranging from $250,000 to $10,000,000.
Intellectual property insurance can cover litigation costs related to the enforcement or defense of patents and it can help protect businesses from patent infringement claims brought against them. Companies of all sizes and industries can benefit.
As a patentholder, if you are sued and lack the financial resources to properly defend your patent, you will likely find yourself facing one or more of these difficult situations:
Being pressured into an undesirable license agreement
Incurring burdensome royalty payments
Using cash and assets earmarked for operational needs to defend the claim, thus imperiling the whole enterprise
Being extorted into an unjust settlement to avoid unaffordable litigation costs
Loss of market share due to a delay in launching the product
Being forced to abandon the product all together