A manager from a local Wuxi-based restaurant chain, Xilongji, recently remarked that as their business expands with more outlets and new products, the risk of unintentional trademark infringement has become a major concern. With a new exclusive insurance policy now in place to cover such liabilities, the brand can pursue expansion without the worry of trademark disputes.
On July 27, PICC Property and Casualty Company Limited issued China's first batch of trademark infringement liability insurance policies simultaneously in Nanjing and Wuxi, Jiangsu Province, and Dongying, Shandong Province. This initiative provided intellectual property protection for six enterprises, including Xilongji.
The insured companies span diverse sectors, including agricultural cooperatives, agricultural tourism, consulting services, smart technology, specialty catering, and marine technology. The policies comprehensively cover the infringement risks associated with both goods and service trademarks owned by these enterprises.
The launch of this product represents PICC Property and Casualty's concrete implementation of the guidelines set out in the "Several Opinions on Accelerating the High-Quality Development of Sci-Tech Insurance to Strongly Support High-Level Sci-Tech Self-Reliance." This document, jointly issued by four government departments, encourages insurance companies to provide key protection against infringement liabilities and litigation costs for core patents and trademarks.
This insurance product is the first of its kind in the industry specifically designed to address trademark infringement liability risks. Its coverage extends to both goods and services, providing exclusive risk protection for economic compensation liabilities and legal expenses that an enterprise may be legally required to pay due to negligence or oversight in infringing upon a third party's registered trademark rights.
Against the backdrop of China's ongoing national strategy to build a strong intellectual property rights (IPR) framework, trademark registration is experiencing rapid growth. By the end of 2025, the total number of valid registered trademarks in China (excluding Hong Kong, Macau, and Taiwan) reached 49.877 million. This vast pool of existing trademarks has created a massive demand for IP risk protection, and the introduction of this trademark infringement liability insurance precisely fills a gap in the market.
Moving forward, PICC Property and Casualty Company Limited will continue to refine its IP insurance product system. The company will particularly focus on product innovation to protect IP rights in emerging fields, constantly improving its ability to use IP insurance to support technological and industrial innovation, thereby contributing to the nation's IPR strategy and its implementation.