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PATENT LITIGATION INSURANCE: a study for the European Commission on possible insurance schemes against patent litigation risks

There is little empirical evidence regarding the responsiveness of individuals to health insurance mandates. Two states (Hawaii and Massachusetts) require many of their employers to provide coverage for employees or face penalties, but the responsiveness to a mandate requiring employers to offer insurance is likely to be different from the reaction to a broader mandate that individual people obtain coverage. Although Massachusetts currently requires adults to have health insurance, that mandate has been in existence for less than four years. State and local governments mandate other types of behavior, however, from requiring drivers to buy auto insurance to requiring school-age. | Study relating to Patent Litigation Insurance by CJA Consultants Ltd January 2003 V4a.fin i PATENT LITIGATION INSURANCE a study for the European Commission on possible insurance schemes against patent litigation risks FINAL REPORT January 2003 CJA Consultants Ltd European Policy Advisers Britain and Brussels CJA Consultants Ltd 8 Wellmeade Drive Sevenoaks Kent TN13 1QA England registered office company number 3012615 Telephone 44 0 1732 741117 Fax 001 703 940 7662 E-mail cj@cjac.co.uk website www.cjac.co.uk Study relating to Patent Litigation Insurance by CJA Consultants Ltd January 2003 V4a.fin ii Study for the European Commission on Patent Litigation Insurance October 2002 1. Introduction and Acknowledgements v 1.1 Introduction v 1.2 Acknowledgements v 2. EXECUTIVE SUMMARY 1 3. Summary of work during the study 4 3.1 Current situation selection of countries for study 4 3.2 Exploration of relevant aspects of national laws in all Member States and the USA. 4 3.3 Development of Stage II of the project 4 3.4 Information on financial and economic aspects 4 3.5 Development and assessment of a range of options 4 3.6 Continuation of the Economic financial appraisal 5 3.7 Recommendations 5 4. The legal situation 7 4.1 Substantive law in Member States and the USA. 7 4.2 Statistics - the factual situation 7 5. Historical Overview of Patent litigation insurance PLI 8 5.1 Schemes now available 8 5.2 Lack of success of PLI 8 5.3 Attempts to overcome problems 8 5.4 French experience 8 5.5 German experience 8 5.6 USA experience 9 6. Attitudes of patentees patent lawyers and attorneys to PLI as evidenced by written responses 10 6.1 Patentees in their guise as defendants in patent infringement actions 10 6.2 Likely future involvement with PLI 10 6.3 Desire for PLI to Cover Damages 10 6.4 Desire for EU Commission Action 10 6.5 Conclusions on Intervention desire for PLI inclusion of Defendants Damages and Costs. 11 6.6 Opinion in One Direction on Compulsory PLI. 11 6.7 Perceptions .