New form of insurance takes effect in Qingdao FTZ

China's first patent-intensive product insurance took effect in the Qingdao Area of the China (Shandong) Pilot Free Trade Zone, as known as Qingdao FTZ, on Feb 22, setting a nationwide model for integrating financial services with intellectual property protection and innovation.

This new form of insurance mitigates risks for patent-intensive enterprises, covering patent infringement during R&D, production, and sales, as well as liability risks from product defects. It offers more precise coverage and tailored protection for core innovations than existing patent protection products.

For technology-driven enterprises, the insurance provides lower premiums, higher coverage limits, and comprehensive risk protection, strengthening resilience in complex markets. This enables companies to focus more on R&D and market expansion, accelerating innovation commercialization.

Since its approval, the Qingdao FTZ has strengthened intellectual property protection, with the number of authorized invention patents per year rising from 77 in 2019 to 557 in 2024 — a 623 percent increase.