A composite global intellectual property insurance was launched last week in China (Shanghai) Pilot Free Trade Zone. Shanghai Upper Biotech Pharma Co Ltd and NERC-DTV (National Engineering Research Center of Digital Television) signed policies with Cathay Insurance separately.

Established in 1997, Upper Biotech is a leading producer of vitro diagnostic devices with patents and know-how covering the entire value chain from R&D, production to sales. Upper Biotech bought global insurance for 25 patents and trademarks with an annual premium of 520,000 yuan (US$75,700).

NERC-DTV bought insurance for its 10 patents and 14 patent licensing agreements with an annual premium of 270,000 yuan, according to Pudong government officials at the launch.

The insurance policies were evaluated for risks by American institutions and were reinsured by British institutions. Upper Biotech can claim compensation of US$1 million with its policy.

To encourage innovation, the Pudong Science and Technology Development Fund will subsidize companies for half of their insurance premiums with a ceiling of 500,000 yuan, the officials added.

Source: Shanghai FTZ Government.cn