Abstract: Japan, South Korea and France have set up sovereign patent funds in recent years, indicating that the competition models of patent market is in a new stage of development. Patent sovereign funds are of great significance in supporting the domestic industry to participate in international competition, but it may evolve into potential trade defense measures and stir a new round of global patent race. In practice, the Chinese government has also started a preliminary probe into the patent sovereign funds. How to improve market operations of sovereign patent funds, there are a few ways as follows: Firstly, optimizing patent market system; secondly, strengthening cooperation between the government and social capital; third, improving the patent prevention capacity against litigation risk; fourth, boosting up cooperations and exchanges of sovereign patent funds.