Advertising group launches 'patent troll' insurance scheme

The Association of National Advertisers (ANA) has launched an insurance scheme designed to protect marketing companies against costly litigation from non-practising entities (NPEs).

Marketing companies that join the scheme will be provided with assistance in challenging the validity of patents asserted by NPEs in infringement claims.

The scheme, launched earlier this month, will also provide funds for marketing companies to petition the US Patent and Trademark Office to institute inter partes review petitions against patents owned by NPEs.

“The 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,” the ANA said in a statement published on its website.

The ANA was founded in 1910 and represents nearly 700 marketing companies in the US.

The association said it launched the scheme on August 11 because NPEs “have been increasingly in the news by claiming ownership of many common advertising practices”.

Bob Liodice, chief executive of the ANA, said: “Patent trolls have been a growing issue for the advertising industry in recent years, costing advertisers and agencies millions of dollars in fees in order to avoid paying even more to defend themselves in court.”