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Securing healthcare innovations by protecting IP

As healthcare organizations increasingly rely on third-party services and collaborative partnerships, they face complex IP challenges.

06/04/2025 · 6 minute read

Protecting intellectual property risks in healthcare innovations: Strategies for success

From gene-editing to tailored treatment plans and many more, advanced technologies are revolutionizing the way healthcare companies treat and care for patients. But the integration of advanced technologies, reliance on third-party services, and collaborative efforts with various stakeholders have heightened the potential for intellectual property (IP) risks.

And as more hospitals and clinics use artificial intelligence (AI) and new digital health technologies and platforms, the risk of inadvertently infringing on patents or other forms of IP has escalated significantly.

Navigating a growing web of risks

In order to better address the evolving needs of their patients, healthcare businesses like yours are increasingly dependent on a diverse array of third-party diagnostics, digital tools, software, and medical devices. This reliance creates a complex web of IP interactions that can lead to critical contractual challenges, including ones related to infringement risks.

The rapid adoption of AI and analytics in clinical care and research further complicates this already complex landscape. As you seek to enhance patient outcomes and optimize internal operations, companies like yours often collaborate with vendors, academic institutions, sponsors, and startups. These partnerships, while beneficial, can result in ambiguous IP boundaries and intricate licensing agreements that may not adequately protect the interests of all parties involved.

Moreover, the complexities inherent in joint development agreements can result in disputes over ownership and inventorship, particularly when multiple entities contribute to the creation of new technologies or methodologies.

Understanding the top exposures

As you navigate these growing and evolving challenges, understanding the primary areas of IP exposure becomes crucial. These often include:

  • Infringement allegations: The risk of infringement allegations related to patents, copyrights, trademarks, and trade secrets is a growing area of concern. The adoption of AI tools, clinical algorithms, or medical devices — whether developed in-house or by third parties — may inadvertently overlap with existing patents, leading to potential legal challenges. Additionally, digital care platforms or content may utilize copyrighted visuals, protocols, or code without proper authorization, exposing your company to copyright infringement claims. Trade secret disputes can also arise when staff or vendors bring proprietary knowledge from other institutions. Allegations of misappropriation of proprietary methods or datasets can lead to costly legal battles and reputational damage. Intellectual property coverage typically reimburses defense costs and damages, settlements, and judgements arising from a third party’s allegations of IP violations.
  • IP-related contract disputes: Healthcare centers often engage in licensing agreements for the use of various platforms and technologies. However, continued use of these licensed platforms beyond the agreed scope or territories can lead to disputes. Modifications to devices or analytics tools that breach license terms or proprietary rights can also create significant legal exposure. Disagreements over the field of use, sublicensing, royalty payments, or violations of non-disclosure agreements (NDAs) can further complicate relationships with vendors and partners, resulting in costly litigation and strained collaborations.
  • Ownership and inventorship disputes: When multiple parties contribute to the development of tools or devices, questions regarding the ownership of the rights to these innovations may arise. This is why ownership and inventorship disputes are relatively common in vendor collaborations or research-driven innovation. Unclear agreements, joint appointments, or staff departures can trigger disputes that may require legal intervention to resolve.
  • Inducement and contributory infringement: Healthcare institutions may face IP infringement exposures when supplying components or software that result in IP infringement, or when providing training on these technologies’ use. This risk underscores the importance of ensuring that all technologies and methodologies used are compliant with existing IP laws.

Risk management and insurance strategies to address IP infringement risks

Considering the potential IP exposures that could arise, it is important to carefully analyze new vendor relationships, including through the following questions:

  • How many technology vendors are we currently partnering with?
  • Have these vendors been involved in IP infringement litigation?
  • How many other hospitals or groups are currently using the same technology or software?
  • Have tech vendor contracts been reviewed to determine who will be responsible for IP violations?
  • Have we assessed the tech vendor’s financial health to determine whether it could indemnify us for IP violation allegations?
  • Do we know whether the current IP owner has a growth strategy for the product in place?  

In addition, IP insurance can provide you with comprehensive coverage that addresses both traditional and AI-driven IP challenges, including:

  • Defense for third-party IP claims: Protection against claims of infringement and misappropriation from third parties is essential for safeguarding a healthcare center's reputation and financial stability.
  • Coverage for inventorship and ownership disputes: Ensuring that disputes over the ownership of jointly developed tools and technologies are covered can minimize the risk of costly legal battles.
  • Protection for IP-related contract breaches: Coverage for breaches tied to licenses, research agreements, and NDAs can help healthcare centers navigate complex contractual relationships.
  • Coverage for trade secret misappropriation: Protection against disputes related to staff transitions, vendor relationships, or spinouts can help healthcare companies maintain a competitive advantage.
  • Addressing AI-driven and traditional IP risks: A comprehensive IP coverage plan should be designed to address the unique challenges posed by both AI technologies and traditional healthcare practices.

As healthcare centers continue to innovate and collaborate in a complex environment, understanding and addressing IP risks is becoming increasingly important. Whether you are creating IP in-house or using products and technologies developed by third parties, your organization could face IP infringement risks. Navigating these challenges requires recognizing the primary areas of exposure and investing in comprehensive IP coverage, allowing you to protect your innovations, maintain your competitive edge, and comply with evolving legal standards.

Marsh’s team of IP insurance specialists has the expertise to help you identify your IP risks and secure adequate coverage, allowing you to focus on your core mission of delivering high-quality patient care while skillfully navigating the intricate landscape of intellectual property. 

For more information or assistance in identifying your IP-related vulnerabilities and determining the most effective risk management strategies and insurance solutions, contact your Marsh representative.

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