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In a global, innovation-driven economy, intangible assets such as patents, trademarks, and know-how often account for half or more of a company’s value. In Germany today, IP can represent 50 % or more of enterprise worth[1]. Protecting these assets has become just as important as insuring physical infrastructure. By Birgit Rummel
Globalisation, shifting regulations, and rapid technological advances are increasing both complexity and exposure. Depending on industry, the share of intangible value differs:
- Technology and pharma – IP often represents 60%+ of intangible assets, driven by reliance on patents and software.
- Consumer brands – IP can be around 30% to 50%, tied mostly to trademarks and brand equity.
- Manufacturing – IP may be less dominant, potentially 20% to 40%,with know-how and customer contracts playing a stronger role.
Despite this, many companies underestimate their IP exposure. Some assume they lack significant IP, others believe their assets are not vulnerable, and many remain unaware of insurance solutions. Yet threats have never been greater.
Rising IP risks
According to EUIPO and Europol[2], intellectual property crimes are on the rise. Counterfeiting and piracy increasingly exploit digital channels, such as online marketplaces, social media, and messaging platforms. The COVID-19 pandemic accelerated these trends, lowering barriers for cybercriminals. Cyber IP theft alone is estimated to endanger EUR 60 billion in EU economic growth and put up to 289,000 jobs at risk.[3] The financial consequences can be severe: in 2024, more than USD 3 billion was awarded in U.S. patent disputes – a 20% increase from the prior year[4] Recent rulings saw Apple ordered to pay USD 110 million in a wireless patent case[5] and Verizon liable for USD 175 million in another[6].
Understanding IP insurance
IP insurance is designed to shield companies from the costs of disputes, whether defending their own rights or facing claims of infringement. It typically covers:
- Infringement liability – defending against allegations of infringing thirdparty IP.
- Enforcement – pursuing infringers and funding legal action.
- Contractual liability and disputes – handling IP-related obligations in agreements.
- IP rights protection – safeguarding patents, trademarks, designs, trade secrets, copyrights, and more.
The most common product is a defence policy, covering damages, defence, and plaintiff costs. On the other side is enforcement cover, which empowers businesses to actively pursue infringers and pays for the associated legal expenses.
Why IP insurance is different
Unlike property or liability coverage, IP insurance protects intangible value and addresses complex, cross-border legal risks. Litigation can cost hundreds of thousands of euros, with U.S. IP lawyer fees reaching USD 1,500 per hour.
Risks are amplified by so-called patent trolls (non-practicing entities or patent assertion entities). These firms acquire patents not to innovate but to extract settlements through aggressive litigation. Even large companies can face prohibitive costs defending themselves against such entities.
Trends in Europe
In terms of registered innovation, patent activity in Europe continues to grow[7]. Green technologies and clean-tech startups are filing increasing numbers of patents, making protection of these portfolios essential. Artificial intelligence also raises new legal challenges, including ownership of AI-generated IP.
A major regulatory milestone arrived in 2023 with the Unified Patent Court (UPC). For the first time, a single legal proceeding can cover multiple EU states, offering cost savings, efficiency, and greater legal certainty. The UPC also centralises revocation power, meaning a patent can be invalidated across all covered jurisdictions in one action.
Recent European cases illustrate the stakes:
- In August 2025, German tech firm ParTec sued NVIDIA for patent infringement, alleging theft of DGX AI supercomputer designs and seeking an EU-wide sales ban.[8]
- In March 2025, Nokia settled a global patent dispute with Amazon over alleged misuse of video streaming technology, involving Prime Video and Twitch.[9]
- In October 2024, a UPC ruling banned Seoul Semiconductors’ LED sales in eight European countries, even requiring a German retailer to retrieve and destroy all such products already sold in the region.[10]
Cyber risks and hybrid threats
The convergence of cyber and IP risk is reshaping exposures. IP theft increasingly occurs via cyberattacks, but unlike personal data breaches, such theft often goes unreported. This creates hidden vulnerabilities.
Some insurers now offer bundled cyber-IP policies, but these can leave important exclusions, as true IP risk protection requires more tailored solutions.
Strategic importance of IP coverage
Economic growth depends on creativity, innovation and technology, which are all rooted in intellectual property. For R&D-intensive sectors like technology, biotech and advanced manufacturing, as well as creative industries such as media, fashion, and entertainment, IP insurance is no longer optional.
It is equally important for smaller firms and startups, many of which rely on a single patent or trademark in their business models. For them, a single dispute could threaten survival.
Conclusion
As intangible assets surpass tangible ones in economic value, IP insurance is emerging as a strategic pillar of corporate risk management. With litigation costs soaring, cyber-IP theft rising and regulatory frameworks evolving, businesses that fail to protect their IP face escalating risks. Those that secure coverage not only defend their innovations but also strengthen resilience and investor confidence.
Quellen:
[1] Intellectual Property | Deloitte Legal Deutschland
[2] EUIPO & Europol (2022), Intellectual Property Crime Threat Assessment 2022, Publications Office of the European Union, Luxembourg.
[3] European Commission launches cyber-theft prevention toolkit to protect SMEs’ trade secrets in high-risk sectors – European Commission
[4] Globe Newswire ‘Lex Machina releases 2025 Patent Litigation Report’, 3 June 2025; https://uk.finance.yahoo.com/news/lex-machina-releases-2025-patent-190000581.html
[5] Blake Brittain ‘Apple owes $110 million in Wireless tech patent case’ in Reuters, 1 July 2025; www.reuters.com/legal/litigation/apple-owes-110-million-wireless-tech-patent-case-us-jury-says-2025-07-01/
[6] Blake Brittain ‘Verizon owes $175 million in patent infringement case, Texas jury says’ in Reuters, 24 July 2025; https://www.reuters.com/legal/litigation/verizon-owes-175-million-patent-infringement-case-texas-jury-says-2025-07-24/
[7] EPO press release ‘Patent Index 2024: European innovation remains robust amid global economic uncertainties’, 25 March 2025; https://www.epo.org/en/news-events/press-centre/press-release/2025/1352247
[8] German tech firm sues Nvidia for patent infringement, seeks to block Nvidia across 18 European countries — ParTec lawsuit alleges DGX AI supercomputer design theft | Tom‘s Hardware
[9] Amazon, Nokia settle international patent dispute | Reuters
[10] Exclusive | Seoul Semiconductor’s Patent Case Leads to LED Sales Ban in Eight European Countries – WSJ
Autor/Autorin
Birgit Rummel
Birgit Rummel is a qualified German lawyer specialising in Corporate Finance and M&A. She leads our Transaction Risk Insurance team for Northern Europe and has recently taken over the role of IP Lead for Tokio Marine HCC in Europe. Before joining Tokio Marine HCC in 2016, Rummel worked at Munich Re for over 14 years. She has a proven track record of handling complex cross-border transactions and combines insurance and reinsurance know-how with market management experience. She holds an Executive Master in International Business and Law from HSG in St. Gallen, Switzerland.
