INNOVATION
INSURANCE
TO THE RESCUE
Kiwi food and beverage businesses can now afford to protect themselves
against intellectual property (IP) risks, thanks to Delta Insurance filling a
“serious gap in New Zealand’s insurance market.”
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Senior underwriter Avani
Vyas says Delta’s IP
offering is designed to
cover legal costs in a
battle over intangible
assets such as trademarks or
patents. New Zealand examples
of IP are the trademarks of
Marmite, Whittaker’s or Wattie’s,
and dedicated IP coverage has
long been out of reach, Vyas says.
“Elements of IP coverage exist
across some current policies,
but no single insurance policy
in New Zealand has adequately
covered intellectual property to
date,” she says. “Until now,
this lack of simple, affordable
IP cover has made it difficult
for Kiwi companies to deal with
infringement and enforcementrelated
issues.” Intangible assets
such as patents and trademarks
(which made up almost 87% 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 New Zealand. With research
and development expenditure by
New Zealand companies rising by
29% since 2014 to reach $1602
million in 2016, Kiwi 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,”
she says. “However, innovators
in New Zealand’s knowledgebased
economy routinely run into
costly IP infringement issues,
with most failing to recognise
the risks until it’s too late,” Vyas
says. Delta Insurance general
manager Craig Kirk says in export
markets, Kiwi luxury consumables
like manuka honey, chocolate and
wine are commonly devalued by
knock-off products and trademark
theft — part of a global tide of
illegal competition which saw the
estimated value of counterfeited
goods rise to $US1.7 trillion in
2015.
Similarly, many Kiwi companies
have also found themselves
extorted or litigated at crippling
expense by patent trolls. Zeacom,
a software company that was
formerly based in New Zealand,
was stung by patent trolls twice…
in the first instance, it opted to
pay a $350,000 settlement instead
of forking out millions to fight
the baseless allegations; and the
second time, the company settled
for an undisclosed amount. “Having
an insurance policy that covers
legal expenses allows businesses
to swiftly respond to these difficult
situations,” Kirk says. “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.”
/www.foodtechnology.co.nz
