Abatement Insurance

Protect your Intellectual Property with an Abatement Insurance Policy from Trilogy

Intellectual Property can be your company’s most valuable asset. Every act of infringement not only lowers its value, but can ultimately render it totally worthless!

An Abatement policy is a "blended coverage."  There are elements of pure insurance (unexpected risk) and a bond (people made / moral risk):

In the event you lose the IP lawsuit, the Abatement policy responds as a pure insurance policy.  However, if you win the IP lawsuit and have recognized an economic benefit, the policy then acts as blended coverage. You only need to reimburse the money paid out by the insurance company, and you retain any additional recoveries.

All new Abatement policies include an endorsement providing relief from the Economic Benefit repayment of the first $100,000. Repayment of economic benefit reinstates policy limits, and those funds are then available to pursue other infringers.

The IP Abatement Policy reimburses:

• The Litigation Expenses to enforce intellectual property (IP) against alleged infringers.
• Countersuits for invalidity in Authorized Litigation.

The IP Abatement Policy Covers:

• Patents: issued, filed applications and provisional applications
• Trademarks: registered and filed applications
• Copyrights: registered or non-registered (must be registered before enforcing)
• Trade Secrets

Advantages of an IP Abatement Policy:

• Prevents loss of market share
• Prevents unexpected cash drain on operations.
• Provides litigation funds to optimize a favorable decision for the IP holder.
• Deters frivolous infringement by just carrying the policy.
• Reduces pressures to settle.
• Attracts investors when the IP is insured.
• Strengthens the "licensability" of the IP.

What Are My Alternatives?

• Attempt to enter into a license agreement with the alleged infringer from a position of financial weakness.
• Sue or be sued by the alleged infringer and tie up your cash reserves, if any are available, in legal costs.
• Prevents loss of market share
• Prevents unexpected cash drain on operations.
• Provides litigation funds to optimize a favorable decision for the IP holder.
• Deters frivolous infringement by just carrying the policy.
• Reduces pressures to settle.
• Attracts investors when the IP is insured.
• Strengthens the "licensability" of the IP.

How Can I Protect Myself Today?

To find out more about how you can protect your company and your Intellectual Property, contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it at 339-200-8668 to obtain:

• a fillable PDF application emailed to you. Please return the completed IP Abatement application to Trilogy Insurance Group.
• a copy of the IP Abatement specimen policy.

What Are The Terms?

1. The Policy is Claims Made and Reported.
2. The Policy terms are available up to three (3) years.
3. Pre-existing circumstances are excluded from coverage under this Policy if the Commercial Activity led to the infringement. This policy is underwritten using the Objective Test; therefore, it does not matter if the activity was known or unknown at the time of purchase of the Abatement Insurance Policy.
4. Limits:$250,000 up to $10,000,000 (Higher limits may be available).
5. 10% Co-Pay (Policy usually pays 90% of the legal costs until the per claim limit has been reached). Can purchase 20% Co-Pay to reduce premium.
6. 2% minimum Self-Insured Retention (SIR) of per claim limits. Higher options available.

What Can I Expect For Premiums?

• Policy Limits of $2MM/$2MM
• Coverage for 1 Patent: $15,200
• Coverage for 2 Patents: $22,400
• The actual cost per insured IP will vary according to type, subject matter and other factors.
• All premium quotes are given only after an application has been submitted for insurance.
• Premium indications can be obtained by contacting Trilogy Insurance Group.
• The premium can be paid annually, or,
• The premium can be financed.
• A down-payment of 20% of the premium (plus any applicable taxes) is due fifteen (15) days after binding coverage.

What Is The Claims Procedure?

The Insured may invoke the policy by:

• Notifying the Company of the discovery of infringement and other relevant facts by completing a claim form provided by the Company.
• Providing the Company with a favorable opinion letter from independent IP counsel regarding the issues of enforceability, validity and infringement.
• Upon compliance with the policy terms, the Company will then authorize the suit and the policy will begin to reimburse the Insured for the Litigation Expenses.

Who Controls the Lawsuit?

The Policy Holder controls the lawsuit.

The Company may suggest reliable and preferred counsel to the Insured but the Insured ultimately chooses. Counsel must, however, adhere to litigation and billing guidelines set-forth by the Company to ensure the full value of the policy is realized. The Insured dictates the settlement terms, if any, not the Company.

As an applicant, you should consult a copy of the Specimen Policy itself for all terms and conditions of the Policy or for any specific questions. The above marketing material in no way changes the terms or effect of the Policy language, nor is it meant to replace the Policy language.

Read the Abatement Insurance Program Summary >>