Subject: Re-post - Insurance issues

From BUSHleague

PostID 475502 On Sunday, May 07, 2006 (EST) at 8:40:14 AM

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A copy of the post I made a while back; I still think the infringer`s insurance, and the insurer`s attorneys, will play a significant factor as we go forward. When company`s rely on an insurance policy for their defense they are basically compelled to follow the insurer`s legal department`s advice, or potentially risk `going it alone` and paying the settlement `alone`. So for those infringers who have this type of insurance, I see `settlements` written all over the place. Not to say that settlements are not the preferred method of dispute resolution for the un-insured either, because I think they are as well. Have a great Sunday!

Subject: Insurance issues - another consideration

From BUSHleague

PostID 462224 On Wednesday, March 22, 2006 (EST) at 12:43:49 PM

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I just spent some time reviewing the burgeoning market of insurance as it relates to patents, and specifically the following:

Defensive policies:

Patent Litigation Defense Insurance (my personal favorite)

Patent Liability Insurance

Patent Infringer`s Insurance

Offensive policies:

Offensive Patent Insurance

Patent Pursuit Insurance

Patent Enforcement Insurance

Infringement Abatement Insurance

Since the mid `90`s this insurance has developed/matured and, in my opinion, is now a critical component of risk management for many companies, particularly those in the tech fields.

We all know that insurers prefer to settle than fight, if the cost/benefit ratio is to their favor. In other words, they don`t often much care about principle, or who is right and who is wrong in a lawsuit; they track expenses v. premiums and go from there.

I would conclude that many of the parties now `caught in our web` probably have this type of insurance coverage which will likely lead to prompter settlements. To some degree then, the argument that some of our infringers have deep pockets may not have as much bearing, since their insurer may be calling the shots. This could be good for us in the sense that swifter settlements may be likely and their may be a nice pool of insurance money to draw from. It could however, be bad in the sense that insurers may settle before we ever win BIG in court. Hard to say.

Then there is the issue of the ``offensive policies`` and whether PTSC or our colleagues, TPL and Alliacense, are employing such and perhaps garnering benefits therefrom.

Anyhow, you may want to spend some time surfing the net as there is a wealth of information available on this topic; and it could certainly play a factor in our ongoing pursuits.

Best, MW