Insurance coverage in intellectual property litigation

The initial phase of technology-driven market was to protect their intangible property through intellectual property. However, the phase continued two decades and people realized the risk attached with intellectual property and also the cost of litigating their IP rights in the courts. Thus, there arose a need for risk management and enforcement intellectual property. The most efficient risk management device available to intellectual property owners is insurance. Due to high cost of litigation, attorneys' fee, damages or settlement in patent infringement litigation, the risk attached with patents is much more than any other form of intellectual property. This paper discusses the insurance as a mode of mitigating risk during patent litigation and its various modes.