What is Patent Infringement Insurance?

Patent infringement insurance is a type of insurance policy that can be purchased by inventors as well as third-party companies. If you are an inventor, you have to be able to protect the patents on your inventions. If someone comes along with a similar invention, you have to be able to sue them in order to protect your own business. Patent infringement insurance is designed to help the inventor come up with the necessary money to sue another party for patent infringement.

Third Parties

This type of insurance can also be used by third parties in order to protect themselves against the possibility of being sued by an inventor because of patent infringement.


In many cases, inventors and third parties do not purchase this type of insurance because of the exorbitantly high premium costs. These premiums are so high because of the extremely high legal costs that are associated with these types of cases. It usually takes millions of dollars in legal costs just to get through a litigation process of this kind. 

The vast majority of these cases are also settled outside of the court. This makes patent infringement insurance a type of coverage that is not considered to be a necessity for many inventors.

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