Insurance against patent litigation
What this entry documents is not a solution.
This practice may be ineffective or useless in the long term.
ESP's position is that abolition of software patents is the only solution.
During debates, people sometimes suggest that insurance companies could protect software developers against the sometimes astronomical costs of patent litigation.
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Contents
Economically non-viable
Standard insurance policies for small software companies exclude all liability for patent infringement, whether intentional or unintentional. This is almost certainly a deliberate decision by the insurance companies. Taking such insurance would make the small company an immediate target for infringement claims which are currently not worthwhile to pursue. This leaves the small company open to the risk that if it starts to irritate a larger competitor, it will be targeted and will be unable to defend itself.
The 2004 EU study
Document: http://ec.europa.eu/internal_market/indprop/docs/patent/studies/pli_report_en.pdf
Hints for further researching this topic
According to a study on patent risk management[1], attempts have been made to create various types of patent insurance by: "AIG, Lloyds syndicate participants, Chubb, Hartford, and Swiss Re".
(And if you do research this topic further, please contribute your findings to the wiki! Thanks)
