CII helps insurers mitigate intellectual property risks
Publication date:
15 March 2022
Last updated:
18 December 2023
Author(s):
Chartered Insurance Institute
The Chartered Insurance Institute has produced good practice guidance to help insurers establish and manage their customers’ intellectual property rights.
The guide recommends insurers:
1) Check if the intellectual property is registered and valued.
Documentation establishing the date of creation, the value of intellectual property and how that relates to the value of the individual organisation can assist with disputes.
2) Perform a risk assessment of the intellectual property portfolio.
A risk assessment will help identify, analyse and respond to any risks affecting the lifecycle of registered pieces of intellectual property.
It will help identify the potential of an infringement, how it will impact the owner and ways to action it.
3) Check wording of ownership and licensing agreements.
Intellectual property can be “licensed-out” to another company in return for a fee or “licensed-in” if another company’s intellectual property is used to develop someone else’s business or products.
4) Check available methods to resolve dispute.
The IPO Mediation Service mediates matters relating to the full range of intellectual property (patents, trademarks, designs, copyright, trade secrets and related commercial matters).
The advantages of using this service include a high success rate of resolution, confidentiality, plus quicker and cheaper resolutions than lengthy and costly litigation proceedings.
Matthew Connell, director of policy and public affairs of the Chartered Insurance Institute, said: “Given the central role that intellectual property plays in our economy, it is not surprising that organisations now invest more in intangible assets than they do in tangible assets.
“According to Office for National Statistics estimates, investment in intangible assets in 2018 stood at £169bn, £18bn more than tangible assets. It is inconceivable that any modern approach to risk management can ignore intellectual property and building trust with corporate and SME clients increasingly means understanding how these assets work.
“Whether mitigating these risks through insurance or other strategies, it is essential for risk professionals to be able to advise organisations on how to build and protect intellectual property.”
To read the guide visit: https://www.cii.co.uk/media/10127670/cii-intellectual-property-gpg.pdf
This document is believed to be accurate but is not intended as a basis of knowledge upon which advice can be given. Neither the author (personal or corporate), the CII group, local institute or Society, or any of the officers or employees of those organisations accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of the data or opinions included in this material. Opinions expressed are those of the author or authors and not necessarily those of the CII group, local institutes, or Societies.