Singapore businesses can now afford to protect themselves against intellectual property (IP) risks, thanks to an audacious move by Delta Insurance.
Filling a serious gap in Singapore’s insurance market, Delta’s IP offering has been designed to make it easy for Singapore companies to cover their legal costs in a battle over intangible assets such as trademarks or patents.
Singapore examples of IP are the trademarks of Marmite, Whittaker’s, Wattie’s or patents such as Gallagher’s electric fence systems or Sealegs’ amphibious watercraft.
Delta Insurance Managing Director, Eugene Cheong says dedicated IP coverage has long been out of reach for most Singapore businesses. “Elements of IP coverage exist across some current policies, but no single insurance policy in Singapore has adequately covered intellectual property to date,” she says.
“Until now, this lack of simple, affordable IP cover has made it difficult for Singapore companies to deal with infringement and enforcement-related issues.”
Intangible assets such as patents and trademarks, which made up almost 87 percent of the corporate value of the Standard and Poor’s 500 companies in 2015, are a key source of competitive advantage for many companies in Singapore.
With research and development expenditure by Singapore companies rising by 47 percent since 2010 to reach $9.519 million in 2016, Singapore companies have realised that innovation will keep them ahead of the competition.
“Our companies are coming up with disruptive ideas, revolutionising day-to-day commodities, and introducing advanced technology to the world. However, innovators in Singapore’s knowledge-based economy routinely run into costly IP infringement issues, with most failing to recognise the risks until it’s too late,” Eugene says.
“Having an insurance policy that covers legal expenses allows businesses to swiftly respond to these difficult situations,”.
“An IP policy helps you unlock the potential of your IP while you commercialise your ideas with confidence and will reassure investors and other stakeholders that your business is well equipped to face infringement disputes.,” Eugene says.