What is the function of patent insurance?

What is the function of patent insurance? With the development of society, some derivative industrial chains have gradually emerged in the economy. Patent insurance, for example, is a new business. What is the function of specific patent insurance and how to implement the insurance plan? Patent insurance actually means that the applicant applies for insurance from the insurance company based on the authorized patent. During the insurance period, the insurance company shall compensate the applicant for the investigation expenses and legal expenses incurred by patent rights protection according to the contract. What role does patent insurance play? Patent rights play an increasingly important role in market competition, especially since China joined WTO, the number of international patent litigation cases has been rising, which makes the cost of obtaining and maintaining patent rights higher and higher. The basic function of insurance is to transfer the risk to the insurer. In case of unexpected loss, the insurer will compensate the insured. Patent insurance is used to pay litigation costs to protect proprietary rights or prevent others' patents from being infringed. Admittedly, patent application will be accompanied by significant risks. Even if the patent application is successful, it does not mean that the patent body is completely successful. Successful patents are also faced with invalidation by others. Therefore, in the face of the corresponding patent infringement, the patent maintenance cost may bring an important burden to the patentee. How to transfer the patent risk, patent insurance is a very good guarantee, to some extent, alleviate the pressure of patent war. Applying for patent insurance is a conservative and safe strategy, but not every patent should be insured accordingly, and sometimes specific problems need to be analyzed, such as the high cost of patent research and development and the risk of patent invalidation. It is suggested to insure these patents, but if the cost of patent research and development is not high, we have great confidence in patent technology in patent retrieval.