Intangible assets i.e. goodwill, brand recognition and intellectual property, such as patents, trademarks, design rights and copyrights, comprise a significant element of the valuation of many businesses and can therefore be a key area of risk in an acquisition.
As competition increases in the market place, it becomes vitally important to protect such assets from threats and challenges such as defending themselves against accusations of intellectual property infringement and associated litigation.
As a result of this, businesses are exposed to potentially significant financial losses and reputational damage. Intellectual Property Insurance looks to address these issues which can be catastrophic for investors if they remain unaddressed.