On Study Of Intellectual Property Litigation Insurance In China

Intellectual Property Litigation Insurance, is a new kind of legal expenses insurancewhich object is intellectual property right. In essence, it helps those insured who hasunluckily involved in certain litigation to share the potential legal risks and expenseswith other applicants buying such a kind of insurance as well. Based on theoperational model of commercial insurance and combined with the application ofinsurance principle, it makes great function for cost sharing and risk reduction. Bypurchasing certain insurance policy, insured is expected to be given a sum ofpremiums as litigation costs paid by insurance company in the event of lawsuit, whichefficiently spreads the private risks undertaken by the party litigant. In westerncountries, for the significant socio-economic value created in legal risks sharing, it hasalready been institutionalized, standardized and systemized, and has obtained thegreat affirmation from governments, academic circles and common people.In contrast, in the face of potential intellectual property litigation, Chinese enterpriseshave sunk in a dilemma. Externally, they has to cope with serious situation ofinfringement and high costs for protection of rights without any financial support andfree legal aid from government or any other organizations; Internally, they are lack ofsophisticated intellectual property management strategies and related professionalrights protection technology, combined with the inherent limitations of themselves,which lead to the large difficulties in the protection of intellectual property rights.Hence, It’s of great significant to introduce such a system into our country. In addition,no matter in the market demand, or legal basis, there are many favorable factors thatdevelop intellectual property litigation insurance in China now. Therefore, from theestablishment model, plant design and the perspective of compensation limit Settings,the above-mentioned rationalization proposal are put forward.