Software may be a company’s most valuable asset. In custom platforms and proprietary code, software drives operations, revenue, and innovation across industries. Unfortunately, with this value comes risks. Software disputes are often assertions of infringement of intellectual property (IP) in copyright, patent or trademark, and a loss can wipe out your commercial advantage.
If your business has built an internal tool, rolled out an app, or licensed software in from others or out to clients, it’s important to make sure those exposures are protected. Here are steps to protect yourself or your clients from the chances that using software leads to IP legal conflict.
An internal tool
Maybe your company built proprietary software to automate workflows, manage data, or speed up R&D. Even though it’s only used inside your business, it’s still subject to intellectual property, and can be at risk if a competitor claims you’re infringing on their rights or if someone tries to copy and repurpose it.
Rolling out an app
If you’ve launched a mobile or web app for customers, you’re putting your brand, features, and technology directly into the market. That makes you more visible to competitors and increases the chance of a challenge, whether it’s over design, branding, or functionality. Many common functionalities of apps are targets for claims of patent infringement, often by non-practicing entities who are immune to charges of infringement themselves.
Licensing software to clients
When your business licenses out software, you’re not just exposing your own work. You’re also accountable to your clients. If someone alleges infringement, it can disrupt contracts, relationships, and revenue. Having the right protection in place helps you defend your business and keep client trust.
Steps to Protect Your Software
1. Investigate Others’ Potential Rights
Understand where your code originates, and any open source or licensed copyright terms. Have experienced IP counsel search others’ patents and trademarks to avoid walking into a lawsuit.
2. Register Your Copyright
In the U.S., copyright protection exists as soon as your software is created but registering it with the U.S. Copyright Office strengthens your legal standing. Registration is often required before bringing an infringement lawsuit, and it can give you access to statutory damages and attorneys’ fees.
3. Use Strong Licensing Agreements
Clear, enforceable license agreements help define how your software can and cannot be used. Tailored licensing terms can limit unauthorized copying, modification, or resale.
4. Monitor and Enforce Your Rights
Proactive monitoring through software audits, license compliance checks, and online monitoring tools helps identify infringement early. Once detected, your business must be ready to take appropriate action to enforce your rights.
5. Strengthen Protection with IP Insurance
Even with careful planning, disputes can blow up if you have successful assets and products. This is where IP insurance plays a unique role:
- Defense Insurance
Protects your business if you are accused of infringing on another party’s patent, trademark, or copyright. Even unfounded claims can be expensive to defend, and this coverage helps offset those costs. - Enforcement Insurance
Helps you take action when another party is infringing on your software’s copyright or other IP protection. Litigation can be extremely expensive, and this policy provides the resources to pursue your claim and protect your rights.
With both types of insurance, businesses gain the confidence to defend their work and enforce their ownership without being overwhelmed by the costs of litigation.
Final Thoughts
Software is a cornerstone of modern business and protecting it from the cost of fights over copyright, patent or trademark infringement is not just a legal necessity but a business priority. Registration, licensing, and monitoring are important first steps, but Defense and Enforcement Insurance provide financial support to truly protect your rights.
At IPISC, we specialize in insurance solutions designed to protect software-dependent businesses from the costs of intellectual property conflict. To learn more about how these policies can work for your business, visit ipisc.com.
