Intellectual Property Defense Cost Reimbursement Insurance — coverage that reimburses insureds for legal expenses incurred to defend against
lawsuits alleging that the insured has committed patent, trademark, or
copyright infringement. Since the purpose of the policy is to pay defense costs
only, there is no coverage for damages awarded against the insured if it is
found that the insured, in fact, infringed upon another's intellectual
property. The rationale for this approach is that such infringements are
usually (although not always) intentional and that it would be against public
policy to provide coverage for the insured's intentional acts.