Piracy Protection Insurance

What is the main purpose of Piracy Protection Insurance?

It has been designed to tackle two main obstacles. 1) It will limit en masse the continued illicit proliferation of digital content online; 2) The return of lost revenue to the Rights Holder.


What does Piracy Protection Insurance Cover?

This Insurance is the first of its kind to cover the Rights Holder in their pursuit of Copyright Infringers against three main elements of risk: ISP Adverse Costs; Defendants Costs; Own Court Fees on Loss. Previously Rights Holders have pursued defendants through court, however until now, they have had to bear the significant risk of Adverse Costs which in many cases would be too high to consider.

By purchasing this Insurance, 1) you transfer all this risk to the Insurer, 2) you transfer the administrative burden to the Wrapper, and 3) our panel of Specialist Tier 1 Intellectual Property Lawyers will pursue the infringers through IPEC (Intellectual Property Enterprise Court – A division of the High Court) on your behalf.

This allows you to focus on your core business of producing great film and television..


Who should consider buying Piracy Protection Insurance?

All Rights Holders concerned that their intellectual property will be pirated over the internet.


At what stage in the lifecycle of a film should I buy this Insurance?

The Rights Holder can purchase this Insurance any time prior to moving into the Post Production phase, but most have agreed it makes sense to handle this at the same time as Film Production Insurance and Producers E&O Insurance.


How do I claim on this Insurance?

The Insurance Wrapper / Management will be closely monitoring the piracy statistics for each Title / Rights Holder, and when the relevant piracy criteria are reached as outlined in the Policy Wording, the Management will notify the rights holder and assist them in making the claim. The Management will then correspond with the Insurer on the Rights Holder’s behalf, keeping the Rights Holder fully up to date on the progress of the claim and the litigation.


What Information will I be required to provide if/when I claim?

Rights Holders are required to show proof of chain of title and that they have the right to litigate against copyright infringers. Rights Holders are not directly required to provide any evidence files as the management provide legal and general support services as part of the cost of the Insurance and engagement with the Wrapper.


Who are the Insurers?

The Insurer providing this cover is an ‘A’ rated, multinational Insurer.

At the point of engagement, key confidential information like this will be readily available.


Can I purchase this Insurance for Titles or Digital Content that I know have already been heavily pirated?

This is ‘Before the Event’ (BTE) Insurance, which is the reason it can only be purchased before the ‘Post Production’ phase.

However, ‘After The Event’ (ATE) insurance can be purchased for titles that rights holders know have been heavily pirated and the loss of revenue significant enough to warrant litigious proceedings to return these revenues. Please contact us for more information regarding ongoing piracy issues.

The ‘Wrapper’ (H&B Administration LLP)

What is purpose of the Wrapper?

The Wrapper has been established for the purpose of administering litigious proceedings for and on behalf of Rights Holders. The LLP is a financial instrument known as a ‘ wrapper’, which consolidates rights holders efforts to protect their intellectual property globally. Purchasing this Insurance outside of England & Wales would otherwise not be possible.


What are the administrative benefits to being Insured within the Wrapper?

The LLP will handle the day to day management and progress of each individual litigation process, as well as liaison with the Insurer and their Claims team. It will also manage the production of all relevant ‘Evidence Files’ and ‘Particulars of Claim’ documentation for Solicitors and Barristers.

This enables the Rights Holder to focus on the core business of creating film.


How do I utilize the Wrapper?

Subject to approval by the Management Member, the Management Member and Rights Holder will execute a Partnership & Adherence Deed. A copy can be obtained from the Management Member at any time by emailing piracyprotection@aflib.com.


Why would I not use my own lawyer to pursue copyright infringers through the court system?

It is critical that all litigious activity be handled by experienced IP Litigation Lawyers. Lawyers who do not have the relevant experience will likely jeopardize a successful outcome.

We have organized a panel of the best Tier 1 IP Law Firms Internationally to handle these cases of Copyright Infringement.


Why can’t Lawyers, Distributors and Sales Agents litigate for rights holders?

Copyright should at no point be assigned to a third party to protect Copyright, this includes but is not limited to; Lawyers, Distributors, Sales Agents, other producers, and/or other legal entities. International courts determine that this is a form of vexatious litigation and the obligation should remain that of the rights holder. Rights holders are therefore referred to as ‘litigants in person’.

If your question is not covered in the above list, please contact

Simon Thomson
Director, Specialty
AFL Insurance Brokers
+44 207 889 2809
8 Lloyd’s Avenue, London, EC3N 3EL

Let’s talk.