When owning your own building it is protected from the certain risks by your property insurance. With commercial auto insurance it covers your employees with workers compensation, and your vehicles. Now you wonder what about the risks that are related to your business’s intellectual property, (your IP)? Every business owner knows to protect their IP, it’s very crucial to do so and you can purchase an IP insurance.
Do you know what intellectual property is? Here are the different types along with their definitions.
Trademark: This is a symbol, phrase, word or logo that can be combined as one to distinguish a company’s product. Any infringement on a company’s trademark is illegal and therefore the company owning the trademark can sue that infringing party.
Copyright: This is an ownership of intellectual property by the creator. A copyright law protects the creators original ideas and art. This gives them the exclusive right to keep developing them for a given amount of time. Which then comes a public domain.
Patent: This is a government license that can give the holder an exclusive right to process the design or a new invention.
Trade secret: This is for any practice or process of any company that does not share anything outside of the company walls.
IP insurance covers two types of coverage that can help in any event of alleged IP infringement. One will pay the costs of your legal defense if someone tried to claim you stole their IP; and the second one will be the cost of suing someone you believe has infringed upon or stolen your IP.
Who needs to have this IP coverage you wonder, well any large business or small one. If they plan to develop a new product they should have an IP coverage. This is essential to have, and patents can easily expire without anyone noticing, which lasts 20 years.
For more information contact Brazelton Insurance Group