The importance of innovation in business cannot be understated. Entrepreneurs must find new ways to provide services and products that meet their community’s needs. Meeting these needs will help entrepreneurs have a profitable and fulfilling business.
But what does “innovation” really mean? The definition often falls on a sliding scale. Some innovations are groundbreaking and change the market. Others are relatively small changes to existing products or services, but changes that provide a useful advantage. Harvard Business School Online provides a deep dive into this notion and further details the various types of innovations.
Although a clear key to success, it is important to note that innovations mean very little to a business without proper protections. This is true whether your business is looking at groundbreaking or small-scale innovations.
How to protect innovations
These types of matters generally fall within the realm of intellectual property protections. You have likely heard of the importance of patent protections to protect the services and products developed by your business. Savvy business owners will take the next step and have patent insurance protection to protect against patent infringement lawsuits. These lawsuits often deal in the millions of dollars, a figure that can quickly cripple small and even larger businesses. Costs skyrocket as one side’s legal strategy in these cases is often to drag out the discovery process as long as possible. As the cost of the case grows, the larger business has a better chance of negotiating a deal that serves its interests.
Having patent insurance coverage can mean the difference between fighting the allegations or living with a potentially bad deal or even closing the business. Those looking for the right type of coverage generally have two options:
- Defense. This can cover litigation expenses if your business is sued for patent infringement, including court costs and potential damages.
- Abatement. This option provides coverage if your business chooses to file a claim against another for patent infringement, allowing your business to enforce its intellectual property protections.
Failing to properly plan for intellectual property protection and their expenses can have serious financial consequences. If your business is the subject of a patent infringement claim or needs to exercise its intellectual property protections, it is important to have counsel on your side to assist your business through the claims process, advancing your coverage arguments. Our office specializes in intellectual property protection claims and can help your company mitigate its out-of-pocket expenses and maximize its insurance coverage for the claim.