Exposures
All companies can be exposed against IPR disputes which can be very costly, demanding and in extreme cases devistating. If a company finds itself in a situation where rights have been infringed upon, it can be vital for the company to have an insurance, alternatively a strong balance sheet, which pays for a future costly dispute.
Products that infringe in the market are often bad quality imitations of the original product and the copy can negatively influence the reputation and sales of the owner of the IPR. It could be regarded as a sign of weakness of other companies that an IPR owner does not seek protection and can even encourage infringement.
It is not only owners of IPR that are exposed, but all companies are exposed against risks concerning right infrigement, either defensive-wise or offensive-wise.
The risks of being accused of infringement increases for companies that import, manufacture, distribute, sell or otherwise offer for sale a service or product. There is always the risk that the product or service infringes or is accused of infringing upon a third party's rights and to defend itself is costly regardless who is right. Without insurance the costs must be covered internally and even in case of a positive outcome it can be difficult to recover your expenses in many jurisdictions.
