Patent Infringement Insurance — Research Brief

For Lena meeting (week of Feb 23, 2026) Research by Max · n=6 sources · Confidence: Medium (general landscape clear; Piqki-specific pricing requires a broker quote)

TL;DR for Gin

Patent infringement insurance has two jobs: (1) defend you if someone sues you for infringing their patent, and (2) enforce your own patent if someone copies you. Right now, #1 matters most — Piqki's wheel mechanism could plausibly step on existing beauty/nail tool patents even without knowing it. Budget: $3,000–$10,000/year for a solid startup policy. The smartest move is to get an IP risk assessment from a broker BEFORE paying a dime, because they'll tell you what the actual threat landscape looks like in your space.

The Two Types of Coverage

Type	What it does	When Piqki needs it
Defensive	Covers legal costs + damages if a 3rd party sues Piqki for infringing their patent	Now — as soon as product is sold
Enforcement / Abatement	Covers cost to sue someone who copies Piqki's invention	After patent is granted (not provisional)

Most early-stage companies only buy defensive. Enforcement is relevant once the patent has value and a competitor is copying it.

Cost Range (n=4 sources)

Policy size	Monthly cost	Annual	Who it's for
$250K–$500K	$250–$500/mo	$3K–$6K/yr	Early-stage inventor, limited risk
$1M–$2M	$500–$1,000/mo	$6K–$12K/yr	Growing startup with IP exposure
$5M+	Custom	Custom	Established company, active litigation risk

Important caveat: Premiums are heavily driven by an underwriting assessment of YOUR specific IP risk landscape. The insurer will research: - What patents exist in your product category (nail tools, application devices) - Whether any NPEs (patent trolls) are active in adjacent spaces - Strength of your own IP position

This means you may get a much better or worse quote depending on what they find. The assessment itself is often free or low-cost — and useful regardless of whether you buy.

Key Providers to Know

Provider	Type	Best for	Notes
BlueIron IP / ip.insure	Specialist IP broker	Startups, inventors	Independent broker — shops 12+ carriers. Lloyd's of London backing. Most startup-friendly. Recommended starting point.
CFC	Specialist IP underwriter	SMEs, startups	Direct underwriter via brokers. Clean, modular coverage. Good for Piqki's size.
Founder Shield	Startup broker	VC-backed startups	General startup insurance broker that includes IP — good if bundling other coverage
Aon	Enterprise IP broker	Larger companies	Overkill for Piqki's stage. Skip for now.
Insureon	Online broker	Very small business	Cheap, fast quotes — less specialized

For Piqki: Start with BlueIron IP. They specialize in exactly this — pre-commercialization inventors who need defensive coverage before launch. They'll give you a landscape assessment as part of quoting.

What's NOT Covered (Important Exclusions)

Willful infringement — if you knowingly copied someone's patent, it won't cover you
Pre-existing claims — anything already being litigated before you buy
Patents already under dispute — if there's a known conflict, they'll exclude it
Policies often require a favorable freedom-to-operate (FTO) legal opinion before covering litigation costs — ask Lena about FTO for the wheel mechanism

Piqki's Specific Risk Profile

Exposure: Medium-low, but non-zero

The nail tool and beauty application device space has a patchwork of existing patents (particularly around applicators, dispensers, and press-on mechanisms). Piqki's wheel concept is novel, but proximity to existing patents won't be known until an FTO search is done.

The bigger near-term risk is defensive: - Once Piqki launches and sells product, you're exposed - If a competitor or patent troll identifies the wheel mechanism as stepping on their IP, a lawsuit arrives regardless of your provisional patent status - The provisional patent does NOT protect you from being sued — it only establishes your priority date

Enforcement coverage: premature until provisional converts to granted patent (12+ months). File that on the backburner.

Questions to Bring to the Lena Meeting

Freedom-to-operate: Has anyone done an FTO search on the wheel/application mechanism? If not, should we before launch?
Policy timing: Should we have defensive coverage in place before April (first ads / first sales) or is that premature?
Enforcement readiness: When does enforcement coverage make sense — at provisional filing, at grant, or at commercialization?
IP risk landscape in beauty tools: Any known active litigants or patent trolls we should be aware of?
Provider recommendation: Does Lena or Perkins Coie have a preferred broker for this? (Patent lawyers often have relationships with IP insurance brokers)
Bundling: Can IP insurance be bundled with general startup commercial coverage to reduce cost?

Recommended Next Actions (after Lena meeting)

Get a free landscape assessment + non-binding quote from BlueIron IP (ip.insure)
Ask Lena to scope an FTO search on the wheel mechanism before launch — this is the legal foundation for knowing your actual exposure
Budget $5–8K/year for defensive coverage in the financial model (conservative assumption)
Revisit enforcement coverage at patent grant

Sources: Founder Shield (foundershield.com), UpCounsel (upcounsel.com), CFC (cfc.com), BlueIron IP (blueironip.com), ip.insure, Insureon (insureon.com) Confidence: Medium — general landscape validated by 6 sources. Pricing is directional; actual quotes will vary. Lena's guidance should override any strategic calls here.