Development of intellectual property insurance in Azerbaijan requires support

By Azernews

By Rashid Shirinov

Intellectual property insurance has not yet received the expected development in Azerbaijan, insurance expert Vugar Huseynli told Trend on August 23.

He noted that the product, the sales of which started last year, has not yet gained popularity.

“The fact is that very few companies are aware of this product and they face it only when preparing documents for customs authorities within the registration of a trademark in Azerbaijan and fight against counterfeit products,” Huseynli said.

He noted that given that the State Customs Committee necessarily requires this insurance when registering a trademark, the unpopularity of intellectual property insurance can be explained by the fact that companies are not active in this matter.

The expert believes that currently intellectual property insurance may be of interest mainly to large foreign companies.

“Large foreign companies are seriously engaged in the fight against counterfeit products. Therefore, this product may generate their interest. I know that some companies operating in the territory of Azerbaijan, for example, Unilever, have already purchased this insurance product,” Huseynli said.

As for Azerbaijani companies, first of all, it is necessary to simplify the process of obtaining patents, which will increase the number of intellectual property in the country. After this it will be possible to think about its insurance, the expert believes.

Azerbaijan has started to insure intellectual property since last year. The product is intended for international companies exporting various products to Azerbaijan.

Formation of insurance coverage and insurance premiums for this product depends on how popular a particular brand is and how often it is forged. The trade turnover of the company in Azerbaijan and the list of the company’s distributors in the country are also considered. Insurance coverage also varies depending on the risks and ranges from 5,000 to 5 million manats ($2,937-$2,936,858).