Posts Tagged: "Indemnification"

What happens when technology convergence fundamentally changes your patent risk profile? What do you do when your customer demands broad intellectual property (IP) indemnification and your supplier provides almost none? Industries that clear patents as a standard practice are integrating technology from industries that specifically do not clear patents. If this sounds like a potential train wreck, well, it is. We recently completed a survey of 16 companies’ activities with respect to freedom to operate. In that study, we found substantially divergent patent risk mitigation strategies. For example, as you would expect in the chemical industry, companies did full patent clearance searches of their new molecules and processes—they wanted freedom to operate. That means they searched in all their major markets for any patents they might infringe prior to releasing new products. In contrast, high technology companies did no clearance search prior to product launch, but they adopted other techniques for reducing their overall risk—they wanted freedom of action. For professionals in each Industry, their respective risk mitigation strategy makes sense. But how can it be that in one industry people review and clear patents and in another they do not? The answer lies in the specific patent risks faced in each industry, and we will explore some of those risks.