Final yr, I had the great fortune to be invited to attend the primary Contingent Danger Insurance coverage Convention hosted by a number one insurance coverage brokerage, CAC Group, at certainly one of Washington, D.C.’s extra historic addresses, the Mayflower Lodge. I shared some takeaways of consequence for IP litigators on these pages following the occasion, together with an exhortation to this readership to “proceed to have a look at how litigation finance and insurance coverage can independently and collectively help their practices and the goals of their purchasers.” That recommendation stays simply as related and well timed now because it was final yr, even because the insurance coverage market could be very upfront about a number of the challenges it confronted previously yr, significantly with respect to its hottest product so far, judgment preservation insurance coverage (JPI) insurance policies. Regardless of these challenges, nevertheless, there’s a number of justified pleasure about how insurance coverage could be of profit to IP house owners specifically, because the business continues to evolve alongside litigation finance to increase the instruments obtainable for IP house owners prepared and keen to tackle well-heeled and dug-in infringers.
Keen to listen to the most recent developments, I used to be excited to have the chance to attend this yr’s installment, the second annual CRICON. As with all invitees, CAC was form sufficient to cowl my room and board, throughout the stately confines of the Mayflower as soon as once more. Similar to final yr, the occasion featured a notable keynote speaker, former solicitor normal and legendary appellate advocate Paul Clement, in addition to a number of panels stacked with a various set of panelists together with insurance coverage, litigation finance, and legislation agency practitioners lively within the insurance coverage markets for contingent threat at present. Manning the until on these panels had been members of CAC’s personal contingent threat crew, which, previously yr, has expanded commensurate with the expansion of curiosity and exercise within the contingent threat insurance coverage house. As you’ll in all probability anticipate, every of the CAC moderators introduced an in-depth data of each insurance coverage and authorized observe to the respective discussions, enhancing the standard of the panels alongside the nice and cozy hospitality proven to all the attendees — a gaggle 15% bigger than on the preliminary CRICON, offering additional proof of the burgeoning curiosity in contingent threat insurance coverage merchandise amongst the authorized and monetary communities.
Packing a number of content material into its relatively-short operating time, CRICON II provided loads to contemplate for IP litigators and their purchasers. To start out, it looks like we’re in a “better of occasions, worst of occasions” state of affairs with regards to insurance coverage choices for IP house owners. Let’s clarify.
On the one hand, the headwinds within the JPI markets are more likely to blow steadily for at the very least the subsequent few years as insurers work by means of the winners and losers of extant policyholders. Throughout that interval, declare limits for JPI insurance policies could be anticipated to be decrease, premiums increased, and stricter due diligence the order of the day for potential policyholders. For IP house owners, specifically, the federal circuit’s perceived unpredictability — and even bias in opposition to giant judgments — presents a selected problem for patent holders lucky to have secured a big judgment and available in the market for a JPI coverage to lock in a number of the anticipated positive aspects. On the similar time, alternatives to safe a JPI coverage aren’t going away — and it’s a signal of a wholesome, maturing market when the gamers are capable of assimilate classes from the previous to assist information to a more healthy future. As only one instance, insurers at the moment are eager to get an understanding of the settlement historical past of a dispute as a part of their JPI diligence. For apparent causes, in fact, however this degree of consideration is proof of a extra expansive strategy to diligence that may serve everybody in good stead going ahead.
A lot for the “worst of occasions” bit. Then again, the probabilities for insurance coverage merchandise of curiosity outdoors of JPI insurance policies are as strong as ever. Partially as a result of insurers need to supply portfolio-based merchandise with a very long time to assert and lots of alternatives to get off threat. Whether or not that’s by way of a coverage backed by a contingency legislation agency’s accrued work in progress, or an IP proprietor’s anticipated return from enforcement of a given portfolio, the dynamic nature of patent licensing and enforcement income is an efficient match for the market’s present urge for food. The demand is there, so it will likely be as much as IP house owners and their attorneys to deliver the availability of fine portfolios to the insurance coverage markets to assist get offers achieved going ahead. So as to take action, working with educated and forward-thinking brokers just like the crew at CAC will likely be a necessary ingredient of the method.
In the end, I, for one, stay excited to see how issues unfold and am a grateful participant in making an attempt to maneuver this piece of our business ahead. That pleasure was evident amongst different CRICON attendees and I believe a part of the success of this yr’s convention was in energizing attendees to go ahead and assist create the success tales for dialogue at subsequent yr’s occasion. Thanks once more to the great folks at CAC Specialty for as soon as once more placing on such a productive and well timed occasion and I proceed to hope that this readership will proceed to have a look at how litigation finance and insurance coverage can independently and collectively help their practices and the goals of their purchasers. It is going to be fascinating to see how the contingent threat market continues to flourish and work together with the IP licensing and enforcement market in 2025 and past.
Please be happy to ship feedback or inquiries to me at [email protected] or through Twitter: @gkroub. Any matter options or ideas are most welcome.
Gaston Kroub lives in Brooklyn and is a founding accomplice of Kroub, Silbersher & Kolmykov PLLC, an mental property litigation boutique, and Markman Advisors LLC, a number one consultancy on patent points for the funding neighborhood. Gaston’s observe focuses on mental property litigation and associated counseling, with a robust concentrate on patent issues. You possibly can attain him at [email protected] or comply with him on Twitter: @gkroub.
