Engines What's Next: Intellectual Property Risk Management

Introduction

• Presenter: Sean Casemar
• Purpose: Provide cutting-edge information for Canadian manufacturers on navigating current environments
• Focus: Intellectual property risk management for Canadian manufacturers
• Session: Recorded, available post-presentation
• Q&A: Post-presentation, questions via Q&A box or chat box

Presenter Introduction

• Shannon Shannon: Vice President, Producer at Aon
  • Expertise: Risk management, technology, manufacturing
  • Areas of Expertise:
    • Risk management consulting
    • New business development
    • Relationship management
    • IP solutions
• Aon Team Members:
  • Peter Holtz: Senior VP, Commercial IP Risk Division
  • Sarah Olek Setzen & Josh Cancilipelli: Brokers on the IP team

Presentation Overview

• IP Team Size: Grown from 40 to 150+ members globally
• Focus: How to manage, protect, and leverage IP
• Coverage Highlights:
  • Business interruption
  • Product liability
  • IP risks and opportunities
• Geographic Scope: US-based, globally functional, including a strong Canadian presence

IP Risk Management

Importance of IP Risk Management

• Every Company Has IP Risk:
  • Patents
  • Copyrights
  • Trademarks
  • Trade secrets
• IP Infringements: Mostly accidental; difficult to avoid
• Economic Factors:
  • Growth in IP litigation (COVID-19 Impact)
  • Recession impacts leading to increased litigation
• Industries Affected: All, from high-tech to manufacturing

Types of IP Risk

• IP Infringement Defense: Defensive policy for legal fees, settlements, damages
• Indemnified Party Defense: Covers contractual obligations if sued
• IP Rights Protection: Fees for invalidity challenges, protection of owned IP
• Patent Trolls (NPEs): Insurance can include coverage
• Worldwide Coverage: Available, some limitations due to geopolitical climate
• Choice of Counsel: Insurer provides options

Case Studies and Examples

• Example 1: Auto Parts Manufacturer
  • Challenge: Contractual indemnity risk management
  • Solution: Leveraged IP coverage for securing a deal
• Example 2: Portfolio Program for Canadian Organization
  • Outcome: 30% premium savings, improved coverage
• Example 3: High-Tech Manufacturer
  • Situation: Sued by NPE
  • Outcome: Insurance covered legal fees and settlement
• Example 4: Pre-IPO Company
  • Situation: Sued pre-IPO, limited cash reserves
  • Outcome: Insurance covered costly settlement

Questions and Closing Remarks

Common Questions

• Small Manufacturer Protection: Look at contractual obligations, litigation trends, and consider IP insurance
• Unsure of Protection Needs: Evaluate industry trends, and consult experts for landscape understanding
• Cost of Coverage: Typically 1-3% rate online, can be less in portfolio programs

Final Thoughts

• Resource Availability: Guidance from Aon's team
• Engage in Portfolio Programs: Better pricing and coverage

Closing Comments

• Future Events: Break in August, watch for September’s event on economic updates with Peter Hall
• Recording: Available to all participants post-session