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September 30th, 2015
Risk Management: New Patent Insurance Will Help Marketers Fight Claims from “Trolls”
In August 2015, the Association of National Advertisers (ANA) announced a groundbreaking program to provide patent insurance to its members.
The insurance program will help advertisers manage the risk of claims from so-called Patent Assertion Entities (PAEs), also known as "patent trolls." PAEs are firms whose sole business function is to threaten or assert claims for patent infringement against targeted companies. PAEs have roiled the advertising industry by claiming ownership of common advertising practices, including QR codes, website store locators, the placement of facial images on animated body images, the placement of static ads in video streams, and the use of URLs in text messages to link viewers to web content.
Marketers and agencies have paid hefty fees to PAEs - fees that come right out of the bottom line. Until now, neither standard advertising liability policies, nor standalone policies for patent infringement, have met the specific needs of advertisers or agencies in this space, and so insurance coverage has not provided a sufficient method for planning for these risks.
ANA's insurance program attempts to address precisely this issue by providing members with focused patent infringement defense insurance protection for marketing and advertising activities. As noted in the ANA press release announcing the program, "[t]he insurance will permit the insured party to challenge the validity of the patent, or otherwise defend against the assertion, with greatly reduced out-of-pocket expenses."
For more information about how this program may affect advertisers or their agencies, or other advertising law issues, please contact Jeffrey A. Greenbaum at (212) 826-5525 or email@example.com; S. Gregory Boyd (CIPP/US) at (212) 826-5581 or firstname.lastname@example.org, Rayna Lopyan, at (212) 705-4842 or email@example.com, or any other member of Frankfurt Kurnit's Advertising Group. For more information about the program, visit the ANA's website.
Other Advertising Law Alerts
FTC Research Indicates Disclosures Help Consumers Recognize Ads
The FTC has long stated that consumers should be able to recognize an ad as an ad. And if disclosures are necessary to ensure that consumers will recognize that an ad is an ad, then those disclosures must be made in a way that ensures that consumers can understand them.
January 5 2018
New Low-Budget Waiver is Now Available for Digital Commercial Productions
Advertisers and agencies that are signatories to the SAG-AFTRA Commercials Contract can now take advantage of a new waiver issued by SAG-AFTRA and the Joint Policy Committee on Broadcast Talent Union Relations when producing low-budget digital commercials.
November 10 2017
FTC Updates Endorsement Guide FAQs and Settles First-Ever Action Against Individual “Influencers”
Recent developments demonstrate the FTC's continued interest in social media endorsements.
September 11 2017