SMEs and startups are to have access to intellectual property (IP) insurance, following CFC’s launch of policies which have been specifically designed for small businesses.
Legal proceedings – resulting from intellectual property ownership disputes and infringements – can prove costly and time consuming, with many businesses lacking the necessary resources to fight such claims in court.
Intellectual property insurance seeks to level the playing field for small businesses, equipping them with the resources and knowhow to fight potential claims.
What is Intellectual Property (IP)?
According to government documentation, intellectual property is defined as “something that you create using your mind – for example, a story, an invention, an artistic work or a symbol.”
A person or business is deemed to own intellectual property, if they:
- Created something new (and it meets the requirements for copyright, a patent or a design)
- Bought intellectual property rights from a creator or a previous owner
- Have a brand that could be a trademarked (for example, a well-known product name)
What is Intellectual Property Insurance?
CFC defines intellectual property insurance as policies that cover “the defence or pursuit of infringement claims, contractual indemnities, loss of IP rights and loss of profit.”
Intellectual Property Practice Lead at CFC, Maddi Brown, highlights the need of better protection for small businesses, saying that: “SME businesses are disproportionately at risk of threats to their IP but haven’t had access to appropriate cover.
“For instance, it’s not uncommon for existing competitors to challenge the ownership of a startup’s IP or to oppose the validation of their IP rights during the application process.
“These are common tactics used to slow down or eliminate new competition in the market, and it can be really expensive and challenging for those small businesses to fight back.
“We’ve designed a comprehensive and easy to understand policy specifically for startups and SMEs that not only protects them against these types of incidents but any other threats to their IP. And we give the option of using a panel of expert IP lawyers to help them successfully navigate these contentious disputes.”
Small businesses access unsecured, fast funding from Got Capital. As an alternative lender, Got Capital offers financing solutions specifically designed for and catered to the needs of SMEs.
