INTELLECTUAL PROPERTY
Most businesses own information, processes or procedures they have invented, designed or developed which are critical to their success and whose rights are the property of the company.
Many of these businesses would be severely affected if these designs or processes were copied or stolen by competitors who then used the information by duplicating the products of your company.
Your business would be immediately affected through unfair competition from a competitor who replicated your product without the initial and substantial design and development costs. Equally damaging could be the wrongful use of your company identity, through use of your name or logo, which can have a serious effect on sales, your reputation and that of your directors.
Such intellectual property can be core to the business and its loss could lead to the bankruptcy of the company. In addition recent legislation has extended the possibility of personal liability in the event of a company failing.
Business protection in the form of Intellectual Property insurance can help businesses protect themselves against these eventualities and help ensure the continuation of the business. Such plans are relatively simple to effect and can be a cost effective and tax efficient way for a company to help safeguard its future.
The loss of Intellectual Property rights is likely to be a major area of concern for many businesses and can result in a reduction of profits or even bankruptcy in any of the following ways:
- Loss of confidence of existing and new suppliers
- Loss of competitive edge
- Erosion of profit margins
- Flooding of market with imitations
- Significant legal costs in protecting rightful position of ownership
- Lowering of staff morale
- Having insufficient backing to fight predators stealing IP rights
The insolvency act 1986 introduced the concept of wrongful trading which means that if a company goes into liquidation the directors themselves could be liable for any outstanding debts if the directors knew, or should have known, that there was no reasonable prospect that the company could have avoided going into liquidation and the directors did not take sufficient steps to minimise the potential loss to creditors.
Clearly the imposition of these provisions can put a director in a very vulnerable position where his company encounters financial difficulties. One of the causes of financial difficulties, and thus consequential problems of personal liability, is the significant costs in bringing or defending an action involving defending your companies intellectual property rights. A suitable Intellectual Property Policy can help avoid potential insolvency and therefore the question of personal liability will not arise.
Intellectual Property insurance can provide the company with the funds to fight predators who try to steal the companies heritage or fight against companies who allege your company has infringed their own intellectual property rights.
Our Intellectual Rights policy will provide protection to defend your business in the event of attack or misrepresentation from another company maliciously or innocently attempting to steal your intellectual property rights. The policy also protects against your company being incorrectly charged with the illegal use of another company’s intellectual property.
For reasonable premiums you can guard against the very significant costs of protecting your intellectual property rights making this cover a valuable addition to your existing insurance portfolio.
To discuss your individual requirements and to obtain a competitive quotation please contact us on 01793 536851 or e-mail us at ip@brunsdonwestinsure.com and we will arrange to contact you at a convenient time.