Abatement Insurance - Program Summary

Program Administrator:

Intellectual Property Insurance Services Corporation

Carriers:

• Gotham Insurance Company (NYMAGIC)
• Lloyd’s 5151

• Gotham: A (Excellent), VIII
• Lloyd’s 5151: A (Excellent), XV

Limits:

• From $250,000 to $10,000,000 Each Claim
• From $250,000 to $10,000,000 Aggregate
• Higher limits may be available

Self Insured Retention:

• Minimum: 2% of the per Claim Limits
• Higher Options Available

Co-pay

10% minimum; Higher Co-Pay Available

Policy Terms:

Available up to three (3) years

Financing:

Available

Territory:

US (Gotham); International (Lloyd’s 5151)

Coverage:

Litigation Expense Reimbursement for:

• Authorized Litigation (intellectual property infringement suits) brought by the Named Insured against an alleged infringer(s) for infringement which began during the Policy Period
• Defense of Patent Invalidity counterclaims in Authorized Litigation;
• Re-examination in the Patent Office of Named Insured’s patent in Authorized Litigation if petitioned by the Defendant in an attempt to invalidate Named Insured’s patent;
• Re-issue costs during Authorized Litigation in an effort by Named Insured to strengthen the patent claims.
  
  

Partial List of Conditions:

• Acts of the alleged infringer(s) must begin and claim must be filed during the Policy Period.
• Favorable opinion by IP counsel of Named Insured’s choice regarding Intellectual Property validity and Infringement required before authorization.
• Company issues authorization letter after a claim form is received and all conditions are met.
• An Economic Benefit is realized when the Named Insured receives a monetary settlement; an award of damage, a gain of market share; retention of market share; a licensing agreement, an injunction or a settlement agreement to stop the infringing activity.
• When an Economic Benefit has been realized, the Insured pays back to the Company, pro rata, only the amount paid into the lawsuit by the Company. The Insured keeps any recoveries beyond what is paid back to the carrier. The policy limits are reinstated, thus allowing the Insured to pursue other infringers.
• All new policies have an Economic Benefit Relief of the first $100K, so that amount does not have to be repaid. Any Authorized Litigation that is resolved within the first $100K requires no repayment of Economic Benefit to the Company.

Partial List of Exclusions:

• Pre-existing acts of an alleged infringer(s).
• Liability for judgments and damages. (May be available for defense reimbursement policies, however).
• Expenses incurred prior to initiation of a Civil Proceeding underlying Authorized Litigation.
• Breach of contract by Licensees (unless included by Endorsement).
• Willful acts of Named Insured giving rise to infringement.
• Criminal acts.
• Coverage against licensees which are not included by endorsement (New licensees must be added within thirty (30) days of license).

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