The Six Risk Zones

Intellectual property refers to intangible assets that are created by the human intellect, such as inventions, designs, trademarks, copyrights, and trade secrets. When it comes to IP, there are several key risk areas that clients should understand.

Infringement Claims: One of the primary risks is being accused of infringing someone else's intellectual property rights. This can occur if you unknowingly use patented technology, copyrighted material, or trademarks that belong to others without proper authorisation.

Impact: Infringement claims can result in costly legal battles, damages, and the need to cease using the infringing IP. Clearly this can have a major impact on future development and growth.

Counterfeit Products: If you manufacture or distribute products you run the risk of counterfeit goods entering the market. Counterfeiting involves the unauthorised production and sale of goods that imitate or copy someone else's brand or product.

Impact: It can severely damage reputation, lead to financial losses, and may result in legal action.

Patent Trolls: Patent trolls (see our Writings page) are entities that acquire patents solely for the purpose of suing other companies for alleged infringement. They don't produce any products or services but instead seek licensing fees or settlements through litigation.

Impact: You may face the risk of patent trolls targeting them, leading to legal expenses and potential damages.

Trade Secret Breach: Trade secrets are confidential and valuable information that provides a competitive advantage to a business. You may face the risk of trade secret theft or unauthorised disclosure by employees, business partners, or hackers.

Impact: This can result in loss of competitive advantage, financial harm, and legal consequences.

Online IP Infringement: With the rise of the internet and digital platforms, you can face the risk of your intellectual property being infringed online. This includes unauthorised use of copyrighted material, domain name disputes, and online piracy.

Impact: Online infringement can negatively impact your brand, revenue, and market share.

International IP Protection: If clients operate globally, they may face additional risks related to intellectual property protection in different jurisdictions.

Impact: Laws and regulations governing intellectual property rights vary across countries, making it crucial for clients to understand and comply with local IP laws to protect their assets effectively.

To mitigate these risks, you should consider intellectual property insurance policies that provide coverage for legal defense costs, pursuit costs, damages and settlements associated with IP infringement claims. These policies can help protect against financial losses and provide support in managing legal disputes related to intellectual property. See also our page about IP Audits here.