Life sciences cover a broad spectrum of disciplines concerned with the study of living organisms, including microorganisms, plants, animals, and human beings. Companies within the life science industry are increasingly leveraging artificial intelligence (AI) to enhance their operations, from drug discovery to personalised medicine and patient care.

In this article, PNOinsurance’s Daniel Reid discusses the growing role of AI in the life sciences field, the rising importance of IP protection, and how biotech companies can better safeguard their intellectual property. We’ll also explore specialised insurance solutions designed to protect IP, as well as the challenges companies face in sharing sensitive data with key stakeholders.

AI’s Growing Role in Lifesciences and the Increased Value of Data and IP

The adoption of AI technologies within the life science industry are enabling researchers to process and analyse vast amounts of data at unprecedented speeds, leading to breakthroughs in drug discovery, personalised medicine, and biomarker identification. It’s these AI-powered systems that are helping to uncover promising drug candidates, optimise molecular structures and predict potential clinical outcomes, all while reducing the costs and timeframes traditionally associated with drug development.

Diagram courtesy of nexocode.

As AI becomes more embedded in the discovery process, the value of proprietary data, machine learning models and algorithms used in these innovations, has soared. Biotech companies are increasingly relying on AI-driven technologies to create competitive advantages in the market, making the protection of intellectual property a top priority. The risk of IP theft, data breaches, or unauthorised access to proprietary AI models has grown in tandem with these technological advancements, highlighting the need for robust IP protection strategies.

Biotech Companies Partnering with IP Firms for Enhanced Security

Given the high value of AI-driven innovations, many biotech companies are turning to intellectual property (IP) firms to bolster the security of their proprietary data and technologies. These firms specialise in providing legal expertise and strategies for protecting sensitive AI models, datasets, and algorithms from unauthorised access or exploitation by competitors, hackers, or malicious actors.

Securing AI-driven innovations requires a multi-faceted approach. IP firms work closely with biotech companies to establish strong security protocols, though the technical implementation of solutions like encryption and access controls is often carried out in partnership with specialised cybersecurity firms.

IP firms typically coordinate these comprehensive protection strategies, including developing confidentiality agreements and secure frameworks for sharing data and accessing systems. By orchestrating this collaborative approach, these partnerships help mitigate the risk of IP theft and ensure that sensitive innovations remain protected. In an industry where a single breakthrough can be worth millions, safeguarding proprietary assets is critical to long-term success.

Killton Blueprint for Cybersecurity.

Insurance Policies for Added IP Protection

In addition to working with IP firms, life science companies can further strengthen their intellectual property protection by leveraging specialised insurance policies designed for the risks associated with AI and data-driven innovations. These insurance products provide financial support in the event of IP theft, data breaches, or other intellectual property disputes, offering an added layer of protection to companies navigating the complexities of the digital age.

Some key insurance policies available to biotech companies include:

• Clinical Trials Liability Insurance: This policy provides coverage for liabilities arising from clinical trials, ensuring companies are protected from claims related to the trial process and outcomes.
• Life Science Liability Insurance: A comprehensive policy that combines several types of coverage, including Public/Products Liability, Professional Indemnity, and Clinical Trials Liability. Insurers offer IP defence cover as part of this policy.
• IP Insurance: Tailored to businesses with significant IP assets, standalone Intellectual Property Insurance offers more extensive coverage against IP infringement claims. This policy typically covers legal defence costs, damages, and settlement expenses in cases of IP disputes. This policy can also extend to pursuant cover that the insured can use against third parties for breaching their own IP.

These insurance solutions help mitigate the potential financial and reputational risks associated with AI-driven innovations in the life sciences sector, allowing companies to continue innovating with confidence.

Sharing Sensitive Information: What Documentation Does an Insurance Broker Require?

During the research and development (R&D) phase, life science companies must be cautious when sharing sensitive information. The risk of exposing proprietary data or AI systems to competitors or hackers is a warranted concern. When working with insurance brokers or obtaining insurance quotes, companies often need to provide specific documentation that outlines their current IP protections and security measures.

For example, when seeking Clinical Trials Liability Insurance, insurers may request the following documents:

• Trial Protocol: A comprehensive description of the clinical trial, including objectives, methodology, and procedures.
• Patient Informed Consent: Documentation ensuring that patients participating in the trial have been fully informed of potential risks and benefits.
• Contracts and Agreements: Any agreements related to the clinical trial, except for unmodified standard contracts such as Medicines Australia or MTAA Clinical Trial Research Agreements.

At PNOinsurance, we recommend that our biotech partners complete a Life Sciences Proposal Form, which helps us better assess risks and provide an accurate quote. Some companies also require brokers’ to sign a Non-Disclosure Agreement (NDA) to protect confidential information during the insurance quote process. It’s important for companies to understand that this information will be shared with insurers solely for the purpose of providing a tailored insurance proposal, and NDAs therefore must be modified to reflect the brokers’ role.

As AI continues to reshape the life sciences industry, the protection of intellectual property has become more critical than ever before. If you’d like more information on IP protection or to arrange a no-obligation insurance assessment, contact Daniel Reid at dreid@pno.com.au or call (03) 9536 7304.