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Beijing Pilots Legal Expenses Insurance for Overseas IP Disputes

Mon, 04 Jul 2022
Categories: China Legal Trends

On 18 May 2022, the Beijing Intellectual Property Office issued the “Notice on Conducting the Pilot Project of Legal Expenses Insurance for Overseas Intellectual Property Disputes involving Beijing Companies in 2022” (开展2022年北京市知识产权海外纠纷法律费用保险试点工作的通知, hereinafter referred to as the “Notice”), stating that an insurance company can provide legal expense insurance to cover the legal costs of overseas IP disputes for Chinese companies.

The insurance company introduced in the Notice will provide legal expense insurance (LEI) products for Chinese companies.

In the event of patent or trademark infringement cases, the LEI provider shall indemnify the insured Chinese exporters against litigation costs and other reasonable legal fees.

The pilot project intends to cover Beijing companies with more overseas export business.

Currently, Chinese companies are facing a growing number of intellectual property disputes overseas, which involve an increasing amount of money.

On the one hand, these companies are tired of defending their rights when infringed by other companies, on the other hand, they are struggling to defend themselves against patent lawsuits brought by dominant foreign companies.

This LEI can reduce the IP-related legal costs borne by Chinese companies, and thus it is significant for small or medium-sized enterprises.



Cover Photo by JuniperPhoton on Unsplash

Contributors: CJO Staff Contributors Team

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