System and methods for managing intellectual property-based risks

Abstract

Presented herein are methods and systems for managing an entity's risks of patent coverage. More specifically, the present invention is directed to methods and system for insuring an entity against damage awards in patent litigation. The presented methods and systems allow a manufacturer to minimize their exposure to damage awards in patent litigation by conducting pre-emptive analyses and properly allocating funds for royalty payments and/or damage awards. An insurance captive is also established as a risk management tool to insure the manufacturer against excessive damage awards.

What is claimed is: 
     
         1 . A method for forming an intellectual property umbrella captive through a computer system, comprising the steps of:
 performing a comprehensive review executed by use of instructions stored in a computer readable storage medium of at least one selected from the group of assets, protocols and processes related to one or more intellectual properties of an entity to identify one or more risks associated with the one or more intellectual properties of the entity;   creating a model premium executed by use of instructions stored in a computer readable storage medium based on a maximum likely tax on liquidity and on one or more loss adjustment expenses;   verifying compliance with all insurance industry requirements executed by use of instructions stored in a computer readable storage medium;   identifying one or more insurable risks of loss executed by use of instructions stored in a computer readable storage medium;   determining optimal length of policy terms executed by use of instructions stored in a computer readable storage medium;   structuring premium financing executed by use of instructions stored in a computer readable storage medium; and   offering the intellectual property umbrella captive to the entity   
     
     
         2 . The method for forming an intellectual property umbrella captive through a computer system according to  claim 1 , wherein the comprehensive review comprises one or more selected from the group comprising of:
 a collection and an evaluation of an inventory of intellectual property assets and related policies and procedures;   an assessment of strategic objectives of an intellectual property portfolio;   a review of policies concerning patentability and intellectual property protection;   a compilation of a detailed summary of intellectual property assets; and   a compilation of information related to contracts.   
     
     
         3 . The method for forming an intellectual property umbrella captive through a computer system according to  claim 2 , wherein the detailed summary of intellectual property assets includes one or more selected from the group comprising:
 one or more issued patents;   one or more pending patents;   one or more documents for process and control of patentability reports;   one or more documents for process and control of a patent committee;   one or more current prolific inventors; and   one or more past prolific inventors.   
     
     
         4 . The method for forming an intellectual property umbrella captive through a computer system according to  claim 1 , wherein the comprehensive review comprises one or more selected from the group comprising of:
 a review of one or more licenses, cross licenses, nondisclosure and non-compete agreements;   a review of information related to joint venture relationships and partnership relationships including revenues and costs related to those relationships;   a review of performance of patent-based maintenance value calculations; and   an identification of primary threats to an intellectual property portfolio.   
     
     
         5 . The method for forming an intellectual property umbrella captive through a computer system according to  claim 4 , wherein the identification of primary threats to an intellectual property portfolio includes third-party risks such as competitive versus “submarine” patents, first-party risks such as invalidity or valuation risk, directors' and officers' risks, errors and omissions risks, and enforcement risks 
     
     
         6 . The method for forming an intellectual property umbrella captive through a computer system according to  claim 1 , wherein the comprehensive review comprises one or more selected from the group comprising of:
 an analysis of reserves;   a reservation of protocols for open claims;   a utilization of current insurance assets;   a management of intellectual property counter-party risks;   an assessment of directors' and officers' strategies;   an assessment of errors and omissions strategies;   a determination of potential infringement challenges; and   an assessment of exposure as a third-party indemnitor of patent infringement risks.   
     
     
         7 . The method for forming an intellectual property umbrella captive through a computer system according to  claim 1 , wherein said identifying step further comprises the step of coordinating with existing insurance and indemnity coverage with attention to insurance clauses including subrogation clauses directed to media, trademark and cyber-exposure. 
     
     
         8 . The method for forming an intellectual property umbrella captive through a computer system according to  claim 1 , wherein said determining step further includes the step of generating manuscript policies to cover insurable risks. 
     
     
         9 . The method for forming an intellectual property umbrella captive through a computer system according to  claim 1 , wherein the premium financing includes one or more selected from the group comprising:
 a patent Sale/License-Back arrangement;   a transfer of intellectual property to the captive and funding of the captive with royalty payments;   a capital markets structure; and   a conventional premium financing arrangement.   
     
     
         10 . The method for forming an intellectual property umbrella captive through a computer system according to  claim 9 , wherein the Sale/License-Back arrangement uses proceeds to tax the intellectual property umbrella captive. 
     
     
         11 . The method for forming an intellectual property umbrella captive through a computer system according to  claim 9 , wherein the royalty payments are fixed.