The CII has produced good practice guidance to help insurers establish and manage their customers’ intellectual property (IP) rights.
The guide recommends insurers:
- Check if the IP is registered and valued – Documentation establishing the date of creation, the value of IP and how that relates to the value of the individual organisation can assist with disputes.
- 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 IP. It will help identify the potential of an infringement, how it will impact the owner and ways to action it.
- Check the wording of ownership and licensing agreements – IP can be ‘licensed out’ to another company in return for a fee, or ‘licensed in’ if another company’s IP is used to develop someone else’s business or products.
- Check available methods to resolve dispute – The IPO Mediation Service mediates matters relating to the full range of IP (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 at the CII, 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: www.cii.co.uk/media/10127670/cii-intellectual-property-gpg.pdf