When purchasing insurance, an insurance-buyer generally seeks to protect him or herself against potential liabilities or risks of loss. For example, many companies will purchase patent liability insurance to offset the costs of defending against an infringement claim. While such “defensive” patent liability insurance is fairly common, a lesser known type of “offensive” insurance is available to patent owners to help offset the costs of enforcing a patent against an alleged infringer.
So-called “patent enforcement” insurance is designed to cover litigation costs (up to a specified amount) for enforcement actions where the patent holder institutes a lawsuit based on specific, scheduled patents (both U.S. and foreign).
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