Insurance Coverage for IPRs: Possible Solution for Businesses in the GCC

Abstract

As a regional and international business hub, Gulf Cooperation Council (GCC) states have an important role to play for business holders to ensure providing a welcoming environment for businesses and enterprises. This certainly includes protection of IPRs owned by business entities through advanced legislations, and serious enforcement. Meanwhile, legal issues and concerns of Intellectual Property Rights (IPRs) are on the rise more than ever. The rapid technological developments put these rights under the imminent threat of infringement, leading to financial losses to right holders. Such losses have deeper impact when it comes to businesses and enterprises where IPRs are in fact a source of income. GCC states should therefore be concerned with securing protection of IPRs in order to maintain their position as an international and regional business hub. This protection ought to be achieved through advanced IP legislations and strong enforcement policy. At the same time, ensuring more protective measures for enterprises and businesses would minimize the risk of potential financial losses as a result of IP infringement. In search of possible ways to minimize such risks, insurance coverage comes across as a doctrine with potential advancement. Therefore, it is the aim of this paper to examine the intersection between insurance coverage and IPRs. It attempts to answer questions related to how an insurance policy can in fact be applied to save the interests of holders of IPRs. As the scope of IPRs is wide enough to include intellectual and industrial property, one needs to determine the types of IPRs that can be covered by an insurance policy. Despite the actual steps to unify laws of trademark and patents in the GCC states, its legislations remain silent as to the question of insurance of IPRs. Hence, in order to address these issues, this paper will first examine the legal position of IPRs in GCC legislations. This will be followed by examination of the applicable legal rules to insurance policies in the GCC. Consequently, intersection of the two systems requires identification of the types of IPRs that can legally be subject to insurance policies in addition to any potential legal complications which can be associated with it from the view point of insurance companies. Finally, the paper shall conclude by evaluating the current legal position and proposing a way forward.