The Guangdong branch of Cinda Property and Casualty Insurance Co., Ltd., the first insurer to introduce patent insurance in China, recently paid RMB 20,400 to Foshan New Concept Magnetoelectricity Equipment Co., Ltd. This was China’s first completed patent insurance compensation case.
In 2010, New Concept insured four patents, including an iron-removing machine, with Cinda. The premium was RMB 2,000 per patent.
In July 2011, New Concept discovered that a mining company and a ceramic machinery company were manufacturing, using and selling products allegedly infringing the iron-removing machine patent without permission. New Concept brought proceedings in early 2012, and the court accepted the case on February 23.
Under the insurance contract, payment did not depend on the litigation outcome: acceptance of the patent infringement case by the court triggered the insurer’s obligation to compensate. Cinda therefore promptly approved New Concept’s claim after the case was accepted.
A company representative said that the business had previously identified many infringements but had not pursued formal enforcement because of the cost. Patent insurance could pay up to six times the premium. Although the amount was modest, it provided timely support to an innovative small business. Report dated May 18, 2012.
Source: http://www.sipo.gov.cn/mtjj/2012/201205/t20120518_693473.html