What is Legal Expense Cover

IP Legal Expenses Cover is a specific type of insurance that helps pay your legal costs if you need to defend, enforce, or challenge intellectual property (IP) rights like :

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• Patents

• Trademarks

• Copyrights

• Designs

It’s a specialised version of general legal expenses insurance, tailored for businesses and inventors dealing with intellectual property issues - which can be extremely expensive to handle without insurance.

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Why Might You Need It ?

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• You are launching a new product, technology, or service.

• You manufacture, sell, or distribute goods in a crowded market.

• You operate in industries like tech, medical devices, engineering, software, or consumer products — all sectors prone to patent disputes.

• Even if you do your own patent searches, it's easy to infringe accidentally because there are millions of active patents.​

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What Legal Expense Cover typically covers

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• Defending your IP rights (like suing infringers)

• Defending yourself if accused of IP infringement

• Opposing someone else’s trademark or patent application

• Legal fees, court costs, barristers, expert witnesses

• Settlement costs, licensing negotiation support

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What Legal Expense Cover does not cover

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• Criminal IP infringement (deliberate illegal copying)

• Disputes already known before taking insurance

• IP issues outside the insured regions (unless global cover is arranged)

• Poorly maintained or invalid IP rights

• Claims without insurer approval first

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When You Might Need IP Legal Expenses Cover

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• Someone copies your patented product, and you want to sue them.

• You are accused of infringing someone else’s trademark.

• You want to block a competitor’s trademark because it conflicts with yours.

• You need to enforce a copyright against someone stealing your original work.

• You want to negotiate a licence rather than go to court.

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Without cover, these legal battles can cost tens or hundreds of thousands of pounds - sometimes even more.

Real-World Example

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Imagine, you invent a new folding electric scooter and patent it and a big retailer launches a very similar model without your permission. You want to enforce your patent, but the legal battle could cost £150,000+.

If you have IP legal expenses cover, the insurer could fund most (or sometimes all) of the costs of taking them to court, negotiating a settlement, or licensing deal.

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Cost of IP Legal Expenses Cover

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Depends heavily on :

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• The type of IP (patent, trademark, design, etc.)

• The strength and validity of the IP

• The business size and turnover

• The countries/territories covered

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It could range from a few thousand to tens of thousands of pounds per year for strong international patent cover. Higher-risk industries (like tech, manufacturing, medical devices) will usually pay more.

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Why IP Legal Expenses Cover is Important

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• Protects valuable assets : IP is often your business’s most important asset.

• Levels the playing field : lets smaller businesses afford to enforce rights against bigger competitors.

• Gives you credibility : insured IP rights look stronger to investors and licensees.

• Supports negotiations : you can negotiate settlements or licensing deals from a position of strength.

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Quick Summary

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• IP Legal Expenses Cover = specialised insurance that helps fund the legal costs of defending, enforcing, or challenging IP rights like patents, trademarks, and copyrights.

• Essential if your business depends on innovation, brand identity, or creative products.