RIMS warns on intellectual property risk
Developing an insurance program is one way of protecting intellectual property assets, according to a Risk and Insurance Management Society white paper.
The program must include sufficient coverage against potential damages from intellectual liability infringement claims and theft.
Intellectual property risk is among the largest risks to companies, yet many have no handle on the challenge, the Aon-sponsored paper says.
“Due to the complexity of managing intangible property, many organisations have yet to create an adequate structure supported by a multi-disciplinary staff.
“Frequently, intangible property is evaluated only through the lens of a narrow legal framework, which can leave businesses exposed.
“A considerably stronger approach is to include a dedicated team to direct the development of intellectual property from conception through launch through risk assessment and mitigation.”
The paper says intellectual property assets such as patents, trademarks, copyrights and trade secrets drive success in today’s ultra-competitive business landscape.
And there has been a rise in the number of lawsuits claiming intellectual property rights infringement, particularly in the US.
“Despite the significant risk these lawsuits present, many companies have struggled to properly manage this risk, potentially resulting in loss of revenue, business disruption or even bankruptcy, and damage to brand and reputation.”