Manufacturing companies either design the products that they make or are hired by design businesses to create the products for them. No matter what, a number of private secrets, like manufacturing processes, are involved in the situation. The design of the products is often a trade secret as well, at least until they appear in the marketplace. When patents, trademarks, and copyrights come into play, there are always those who find ways to try to skirt around them, making products that look similar to yours. At this point, you need to use your intellectual property insurance to protect your company.
But what does intellectual property insurance actually cover? And what situations could set it in motion? Find out here.
What is Intellectual Property?
Intellectual property is something that a company, corporation, or sole proprietor owns all to themselves because they either created it or purchased it. Some of the many things that fall into the patents, trademarks, and copyright category include automated manufacturing tools that someone in the company created to simplify a process, the items being made themselves, or things written by the business, like screenplays.
When someone infringes on those patents, trademarks, or copyrights by building their company a similar manufacturing rig, making a product that looks very much like yours, or even taking your company’s movie storyline and turning it into their own without your business’ permission, you need to file a lawsuit. These lawsuits can be expensive, considering legal fees and investigative fees as you need to gather as much information as possible in order to prove that your company created the item. Having a legal copyright or patent helps, but there are still steps that need to be followed.
The Role of Intellectual Property Insurance
Having intellectual property insurance in place makes a difference. This insurance policy will cover the costs of:
- Your company’s lawyer
- Researching your product’s creation to prove your case
- Any related court costs
- Additional things, depending on the lawsuit and insurance plan
In short, you can use the funds from the insurance proceeds to pay for the filing of the lawsuit against the infringing company, any research fees required to produce proof of copyright, trademark, or patent, any charges from the court, and so on. It will help you protect your company and what it created.
However, that’s not all that an intellectual property insurance plan can do. What if your business is the one sued for infringement? Will you need to pay for your defense out of the company’s coffers? As long as you have intellectual property insurance, you won’t. Your insurance can help you cover the costs of a defense lawyer, the defense that they’re going to put up, court fees, and any potential settlement costs. So, it’s good to have that protection in place as well.
Have Questions? Contact Charlotte Insurance
Want to learn more about intellectual property insurance for your manufacturing company? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan your business needs.