CEO DATELINE - Advertising association to offer patent troll insurance
CEO DATELINE - Advertising association to offer patent troll insurance
- August 26, 2015 |
- Walt Williams
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The Association of National Advertisers has launched an insurance program designed to protect marketers against the expense of fighting off "patent trolls."
Patent troll is the term for individuals or companies that sue other businesses for patent violations only to make money. Businesses may spend millions of dollars defending themselves from patent trolls, according to ANA.
The association said patent trolls are increasingly claiming ownership of many types of common advertising practices, including QR codes that direct mobile device users to online content. (QR codes being square bar codes that can be scanned by mobile devices.) ANA's insurance program will allow insured parties to challenge the validity of patent claims with greatly reduced out-of-pocket expenses.
"Patent trolls have been a growing issue in the advertising industry in recent years, costing advertisers and agencies millions of dollars in fees in order to avoid paying even more to defend themselves in court," ANA CEO Bob Liodice said. "In order to offer a level of protection to members, we are introducing ANA Patent Infringement Defense Insurance."
Insurance is limited to $500,000 per claim a year and $1 million for all claims in a year, although higher limits are available. http://bit.ly/1PygmrC
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