Money Behind Patent Suits Gets New Layer With Insurance Products

The insurance industry wants a piece of patent fights, already a popular target for outside investors.

New policies offer to set the floor value for patents and pay out if they don’t reach that mark. Insurers guarantee a portion of what patent holders expect to get through infringement lawsuits and other efforts.

Patent monetization insurance promises to bring down the cost of outside funding that is often behind those suits by reducing the risk. Some funders may not be able to invest at the lower rates, creating a new layer of competition in the space.

“Nothing against funders, but their ...