As innovation becomes the core competence in the violent changing world, possession of patents has been the critical one of enterprises' successful factors. Especially in Taiwan, industries now have stridden from OEM to facing the challenge of technology innovation. It's imperative for Taiwan's industries to recognize the importance of patent and to promote patent application, circulation and commercialization. Although patent management get more emphasis both in business and academy, most concerns are based on the context of large-scale enterprises or multinationals. Actually, small and medium enterprises (SMEs) are the majority in Taiwan. Relative to SMEs' importance in the whole economy and their different characteristics, patent management of SMEs is somewhat neglected and needs more studies. This research explores the practice of SMEs' patent management by case study of SMEs in Taiwan's IC design industry. We choose this industry because the fables IC company is a typical model in terms of 'knowledge economy' since it sells the design of electronic components by 'brainpower'. IC design houses really profit from their intellectual assets. Via thorough study from field survey, in-depth manager interviews, documents review, analysis or operation flow and patent information system, we present the specific behavior and phenomenon of SMEs' patent management. The results reveal the problems SMEs facing and thee difficulties when they try to establish patent management system. This article also analyzes the fundamental needs of SMEs for promoting patent management and suggests the corresponding policy assistance to help solving the difficulties.