VCX, the Scottish intellectual property (IP) exchange, is moving into financial services through a series of insurance schemes.
It is working with an insurance syndicate to offer vendors protection against claims that their IP infringes patents or copyrights.
VCX's aim is to give buyers confidence in the IP it supplies, says Jim McRoberts, its senior legal counsel. "Right from the outset of VCX four years ago, there was a recognition that infringement was a big actual risk, that the licensors could stray into the patent rights of a third party," he said.
The insurance will apply to up to 70% of VCX suppliers. But the policy will not cover the risks of the IP not working or causing problems in a design. That will come in a year.
Vendors pay 2.5 to 4% of the cost of IP up to $500 000 for the cover, and have to fill in two forms assessing the risk of a patent dispute.