Small technology companies often lack sufficient funds to enforce their valuable patents and other intellectual property rights. But one little-known solution is abatement insurance. An abatement policy, sometimes called an enforcement or pursuit policy, reimburses litigation expenses to enforce patents, trademarks and copyrights against alleged infringers.
Abatement policies frequently include a self-insured retention (SIR) limit akin to a deductible that the company must pay out-of-pocket before the policy kicks in. In addition, there is a co-insurance obligation, typically 10 to 25 percent of litigation costs. Policy terms typically range from one