The New Magic Key to Escort Patent-Patent Insurance
Patent insurance is a new kind of insurance business for protecting Intellectual Property Right. The common Intellectual Property insurance is “Patent Infringement Liability Insurance”. That is to say, insurance company will cover costs ( e.g. investigation costs, legal costs) of policy holder taking action to stop others infringing IP rights and defending allegation of infringement.
In August 2009, the idea of patent insurance was first proposed in the National Intellectual Property Right upgrading conference held in Chancheng District, Foshan City Guangdong province. It was reported that the proposal was the first patent insurance proposal in China.
In the beginning of 2010, the first insurance policy “Patent Infringement Liability Insurance” was produced. It symbolized the idea of patent insurance had been implemented in China.
In January 2014, PICC Property and Casualty Company Limited paid patent insurance indemnity RMB$82,173 to Foshan Yuxuangong Technology Corporation Ltd. It was the first patent insurance indemnity after Chancheng District , Foshan City became a patent insurance pilot city. By the end of 2015, there are 10 companies and individuals were compensated amounts to RMB$908,600 from the IP insurance companies.
In August 2016, SIPO official approves that a total of 9 cities including of Nanjing, Shenzhen, Chengdu, Chancheng District , Foshan City, etc to become the patent insurance demonstrative city of China. Demonstrative period starts in August 2016 and lasts for three years.
The patent insurance preferential policy of Nanjing city, government-subsidized patent insurance premiums are about 30% to full price depend on conditions of patents. The patent insurance preferential policy of Chancheng District, Foshan City, government-subsidized patent insurance premiums are about 50% to full price depend on conditions of patents. According to the statistics, most of the insured patents are full subsidized by government. If without subsidized by government, patent won’t insured phenomenon has been observed.
The official of SIPO point out the patent insurance business grew rapidly in China, but there are also some problems existed. In order to stimulate patent insurance activity, the society and government of China should focus on the following items:
1.Government policy guidance plays a very important role in implementing the patent insurance business and providing positive environment benefit.
2.IP Insurance companies should enhance service level and insurance policies.
3.Intermediaries give full play to consummate patent insurance service system.
4.Establishing patent risk control system.
Patent Operation means the operation of the patent life time. Each link of patent life time is associated with patent operation. At present, the valuation of CN patents are rising, the patent operation should not only moving towards active IP assets, IP commercialization but escorting the enterprise’s innovation and development by patent insurance business.
Author: PIIP Project Specialist Win Wang