Intellectual Property (IP) Risk Management for Canadian Manufacturers

Introduction

• Presenter: Sean Casemar
• Topic: IP Risk Management for Canadian Manufacturers
• Session Info: Recorded, Q&A available through chat and Q&A tab
• Panelists: Shannon Shannon, Peter Holtz, Sarah Olek Setzen, Josh Cancilipelli from AEON

Overview

• Goal: Navigate the environment for Canadian manufacturers and protect intellectual property (IP)
• AEON Team's Expertise: Risk management, business development, IP solutions, litigation risks, sales coaching
• Focus: Manufacturing and technology sectors

Key Points Discussed

IP Practice Growth at AEON

• Started with 40 people, now 150+ IP practitioners
• Based internationally (US, Canada, London, Bermuda, Asia)
• Clients range from Fortune 500 to startups
• Importance of collision between tech and traditional sectors

Understanding IP Risk

• IP Types: Patents, copyrights, trademarks, designs, and trade secrets
• Common Risks: Infringement of third-party IP, accidental infringement, patent trolls, international exposure
• Cost and Damages: Average US case $3.1 million, global variability but consistent threats
• Litigation Trends: Uptick during recessionary periods and post-COVID-19 pandemic
• Litigation Environment: Litigation costs and economic uncertainties lead to increased IP disputes

Managing IP Risk

• Coverage: Legal fees, settlements, damages for IP infringement; invalidity challenges; trade secret and patent enforcement; breach of contract issues
• Types of Coverage:
  • IP Infringement Defense: For products/services infringing third-party IP
  • Indemnified Party Defense: Coverage for contractual indemnities
  • IP Rights Protection: Challenges to own IP rights
  • Other Coverage Elements: Competitor and NPE suits, global coverages, choice of counsel

Cost of IP Coverage (Canada-specific)

• More affordable than before; typically around 1% of revenue for smaller clients
• Portfolio programs can save up to 30% on premiums
• Increased customization based on company size and exposure

Examples and Case Studies

• Example 1: Mid-size high-tech manufacturer paid $500K claims from NPE after 8 months of negotiation
• Example 2: Pre-IPO company used insurance for large payouts saving their financials during critical growth phase

Recommendations for Small Manufacturers

• Risk Assessment: Understand contractual indemnities and litigation trends
• Coverage Acquisition: Weigh benefits of insurance against potential financial exposure without coverage

Interactive Q&A Highlights

• Addressing concerns about initial steps for small companies
• Importance of continuous risk assessment and IP strategy updates

Closing Remarks

• Encourage continuous evaluation of IP strategy
• Stay tuned for upcoming related events and opportunities

Contact Information

• Connect with AEON panelists via LinkedIn for further consultation and discussions