Intellectual Property Abatement Insurance

Why your attorney may discourage you from buying it

In the best interest of their clients, many attorneys recommend that clients purchase Intellectual Property Abatement coverage. This is so their clients have the financial means to enforce their Intellectual Property rights or patents against infringers.

But other attorneys are quick to discourage clients from purchasing this coverage. Intellectual Property Abatement Insurance covers the insured’s litigation expenses incurred when enforcing their intellectual property up to the limits of the policy.

3 Reasons Your attorney May Discourage the Purchase of Intellectual Property Abatement Insurance

1. One condition of an Intellectual Property Abatement policy requires the insured to choose an unbiased attorney prior to prosecution. This attorney must provide the insurance carrier a favorable opinion letter regarding the “winability” of the case.
2. The attorney chosen must be independent of the insured with no previous participation in the prosecution of its intellectual property infringement or the securement of its patent.
3. Even if your current attorney passes these first two conditions, the insurance carrier requires that he or she propose a reasonable budget to get you through a lawsuit.

It’s all about the money

The first two reasons may exclude your attorney from being involved in prosecuting the infringement of your intellectual property. This denies them an opportunity to make money. If your attorney does pass the first two conditions, the third reason may limit how much he or she can charge you for legal services.