China Increases Penalty for IP Infringement
Liao Shumin
DATE:  Apr 25 2019
/ SOURCE:  yicai
China Increases Penalty for IP Infringement China Increases Penalty for IP Infringement

(Yicai Global) April 25 -- China has passed amendments to its trademark law meaning that infringers on intellectual property rights will need to pay up to five times the amount of damage caused, up from three times before.

The country has also raised the statutory compensation limit from CNY3 million (USD445,000) to CNY5 million, effective Nov. 1, according to a statement. 

"Such a punitive damage amount is fairly-high internationally," said Shen Changyu, director of the state IP office, at the 2019 High-level Forum on China IP Protection, adding that the country will improve laws and regulations.

China has been strengthening the construction of IP laws and regulations and enhancing the punishment for IP infringements in recent years, to bolster the protection of IP rights and create a good business and innovation environment.

Shen said the law will change this year to improve the punitive damage system. The change does not specify the amount of punitive damage for infringements at present, only stating that the amount is determined according to the actual losses suffered by right holders.

The amendments under review will also increase the amount of punitive damages that the court may determine from between CNY100,000 and CNY1 million to between CNY100,000 and CNY5 million. 

Editor: William Clegg

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Keywords:   Trademark Law