Patent Law

The following is excerpted from an article today, May 23, 2008, by Becky Yerak in the Chicago Tribune Web Edition:

Allstate, which this month introduced new financial products such as ClearTarget Retirement Funds and Guaranteed Lifetime Income, wants to protect such existing products as Your Choice Auto, which offers options for motorists depending on whether they care about cheap or comprehensive coverage.

"Your Choice Auto continues to be very successful," Wilson said in an interview in late March. "People are starting to copy it now, though. It looks like Farmers has something similar, so we're trying to figure out whether to sue them on the patent."

Farmers Insurance spokesman Jerry Davies said in response last month that its Farmers Flex auto package was brought to market "after considerable consumer research and after receiving regulatory approval in states where it is offered." The product enables motorists to lock in base rates for up to three years in most states.

"Most insurers have many similar auto policy features and some unique ones," Davies said. "Insurance consumers will choose for themselves, and all insurance companies should stay focused on serving customers in the most productive way possible."

As of Thursday, Allstate hadn't filed a patent infringement suit against Farmers, an Allstate spokesman said.

On a broader scale, Wilson has been weighing the value of patents for Allstate.

"The test will be on things like Farmers. I've said to our team, 'We've spent all this money on patents. If we think they're protection, let's use them. And if we're not going to use them, let's quit doing them,' " he said. "I don't want to spend money getting a patent just to make ourselves feel good.

"Right now in financial services, we're wondering how strong will patents be and how good will they be for us. Or is the answer to be faster than everyone else?"

Read the full article here.