Research On The Development Of China’s Intellectual Property Insurance

Intellectual property insurance is a kind of way to compensate the insured’s losswhen he confronts intellectual property risk. It’s insurance object is intellectualproperty. The policy holder has to deliver premium to the insurer firstly, and theinsurer pays money to the insured if intellectual property risk happens during it’sapplication process, transfer process and using process. Intellectual property insurancecan be divided into two categories. One is intellectual property infringement insurance,which covers the litigation costs needed by the insured when he is prosecuted byothers, and sometimes also covers the compensation cost to the third party. It is usedas a defensive tool.The other one is intellectual property enforcement insurance,which covers legal expenses needed by the insured when he sues others. It is used asan attacking tool.Now the number of intellectual property dispute grows rapidly both in domesticand in export trade so that it is necessary to develop intellectual property insurance inChina to provide effective protection for enterprises. Besides intellectual propertyinsurance can also promote scientific innovation and enrich the insurance market.Therefore this article aims at exploring ways on how to develop intellectual propertyinsurance in China.With the improvement of laws and regulations on intellectual property, the moreattention coming from the government and the development of insurance market,China has already formed some basis on developing intellectual property insuranceand has already established pilots in many cities. But as it is still in the exploringperiod, there are many problems restricting intellectual property insurance’sdevelopment in China, such as people’s consciousness of IP risk management is weakand professional talents and risk data are inadequate. Therefore we should follow theprinciple of being consistent with both domestic situation and international practice,and firstly consider covering the legal risk of patents, as well as reasonably setpremium rate and compensation amount. Insurance companies should review thelegitimacy of the object before accepting the insurance application. They should alsopay attention on accumulating risk data and cultivating compound talents. The government should take measures to improve people’s consciousness of intellectualproperty risk management and provide reinsurance for intellectual property insurance.