TIPS^®  Taiwan Intellectual Property Special

Feature

Higher monetary compensation for patent infringement

Many foreign companies consider enforcement of IP in China to be inadequate. Where the losses of the patentee, the profits of the infringer and the exploitation fee of the patent are all difficult to be assessed, the current law merely allows the courts to award total damages up to RMB 50,000 (U.S. $7,350). The amendment seeks to increase damages and allow judges more discretion to issue higher monetary compensation. Statutory damages under the 2008 amendments have increased to RMB 1 million (U.S. $147,000). The amendments also increase the fine for patent counterfeiting from three to four times illegal earnings.

The 2008 amendment reflect the desire for China to strengthen the protection of patents and to comply with international IPR standards. This coincides with the legislative purpose to encourage innovation and improve China’s international competitiveness. Further clarification of the full extent of the amendments is expected upon promulgation of the Implementing Regulations of the PRC Patent Law, which were sent to the State Council for further review on February 27, 2009.