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In 2016, the semiconductor lighting industry is facing a slowdown in global market demand and the competition for raw material price increases. The international lighting manufacturers have also undergone transformation or exit from the lighting market. For example, GE Lighting has withdrawn from the Asian market, OSRAM has sold its light source business, and Philips Lighting has closed. Shenzhen factory and so on. The current lighting industry is facing transformation and upgrading and supply-side structural reforms. In 2016, the semiconductor lighting industry is facing a slowdown in global market demand and the competition for raw material price increases. The international lighting manufacturers are also transforming or exiting the lighting market, such as the US GE. Lighting exits the Asian market, OSRAM sells its light source business, and Philips Lighting closes the Shenzhen factory. At present, the lighting industry is facing the urgent need for transformation and upgrading and supply-side structural reform. Lighting companies are committed to researching new technologies and new products, and looking for a new blue ocean that is more suitable for enterprise development. The lighting industry has always been the hardest hit area for patent infringement. To develop the industry, it is necessary to increase the protection of intellectual property rights. The promotion of patent insurance can help reduce the cost of protecting the rights of enterprises, not only enabling enterprises to defend their rights and dare to defend their rights. It has a certain deterrent effect on infringing enterprises. On December 13th, Foshan Lighting Association and Foshan Branch of China People's Property Insurance Co., Ltd. signed a strategic cooperation agreement at Foshan 6th Semiconductor Lighting Industry Exchange Conference and SME Supply Side Reform Summit Forum. The industry patent insurance service platform, five Foshan lighting companies and the People's Insurance Company signed a letter of intent for patent insurance. According to the relevant person in charge of the Foshan Lighting and Lighting Association, patent insurance is a new type of commercial insurance introduced after the introduction of insurance business into intellectual property protection. The insured person insures the insurance company with the patent granted as the target, and the insured person encounters infringement during the insurance period. In behavior, the insurance company will compensate the insurer for the investigation expenses and lawyer fees incurred in the process of patent protection in accordance with the contract. Patent insurance reduces the cost of rights protection with a small investment, and it is a good way to use insurance mechanisms to spread risk. The person in charge believes that patent insurance is especially important for innovative small and medium-sized enterprises, which are subject to their own strength and uncertainty of litigation results, and the risk of rights protection is greater. It is worth noting that subsidies can also be obtained for companies that purchase patent insurance. It is understood that according to the provisions of the “Foshan City Trial Measures for Promoting the Agglomeration Development of Intellectual Property Service Industryâ€, Foshan Science and Technology Bureau will subsidize enterprises that purchase patent insurance at 50% of the actual expenditure premium. In addition, in order to encourage more lighting companies to participate in patent insurance, Foshan Lighting Association will also insure the locally authorized lighting invention patents in Foshan in 2016 and 2017, and strive for zero-cost insurance for enterprises. Patent insurance refers to the introduction of insurance business into the new commercial insurance launched after the protection of intellectual property rights. The insured person insures the insurance company with the authorized patent as the target. During the insurance period, once the insured person encounters the infringement, the insurance company will insure according to the contract. The person compensates for the investigation expenses and lawyer fees spent in the process of patent rights protection. The relevant person in charge said that patent insurance is especially important for innovative small and medium-sized enterprises. Such enterprises are subject to their own strength and the uncertainty of litigation results, and the risk of rights protection is greater. Patent insurance reduces the cost of rights protection with a small investment, and it is a good way to use insurance mechanisms to spread risk.