The UK Patent Office is considering proposals for the creation of a mutual insurance association for small or medium-sized patent holders to give them financial help to enforce their patent rights, with premiums fixed in proportion to risk.

The proposals, which are still very much in the early stages of development, are set out in a report of the Patent Enforcement Project Working Group, published by the Patent Office last week.

According to the report, "a mutual insurance association for patentees, broadly along the lines of the Medical Defence Union which provides indemnity insurance cover for its members, could be a viable means for achieving the PEP's aims".

However, to be viable, said the report, the association would have to attract sufficient low and medium risk members, and would have to be able to cheaply assess the level of risk relating to each patent and patentee.

Science Minister Lord Sainsbury last month accepted the report and agreed that the Patent Office should seek to set up a working party with representatives of the insurance industry to take matters forward.

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