Intellectual property insurance is unique, and you probably haven’t heard about it if you haven’t had to use it. The purpose of intellectual property insurance is to protect companies from copyright, patent, or trademark infringement claims that are made against them. Just like your car insurance would, intellectual property insurance pays the costs for the defense should a suit arise as well the judgement, up to the policy limits of course.
With a business in East Texas, it is important to know at least the basics on intellectual property insurance. To start, there are two main types of intellectual property insurance. One type protects you if you have to go after someone for infringing on your copyright. This type pays the costs of filing suit against the individual or company violating the copyright. The second type protects you from being sued by another company or individual for infringing on their copyright. In this case, the insurance company pays for your defense and court costs.
If there is any possibility that you or your company could be sued by a competitor for infringing on their idea or that a competitor could infringe on your idea, it is absolutely necessary to have intellectual property insurance. Unless you have a large amount of extra money laying around, a copyright infringement lawsuit could bankrupt your company in a hurry.
Obtaining intellectual property insurance in East Texas requires that you show proof of registration for your copyright, trademark, or patent.
