More severe penalties in China for those who violate intellectual property



Those who do not respect intellectual property will have to pay up to five times the amount of damage caused


China has decided to make penalties more severe for those who do not respect intellectual property and have approved amendments to its trademark law. In the future, with the new changes, intellectual property rights offenders will have to pay up to five times the amount of damage caused, compared to three times before.

Shen Changyu, director of the state IP office at the 2019 High-Level Forum on the Protection of Chinese Intellectual Property, also announced that the country has raised the legal compensation limit from CNY 3 million (455,000 USD) to 5 million of CNY.


“Such an amount of punitive damages is fairly high internationally,” said Shen Changyu,


China in recent years has made considerable efforts to defend intellectual property and has strengthened the construction of IP laws and regulations and strengthened the punishment for IP violations in recent years. Furthermore, efforts to protect intellectual property have also been made to maintain a good business and innovation environment.

Shen said the law will change this year to improve the system of punitive damages. The changes under consideration will also increase the amount of punitive damages that the court can determine between an amount between 100,000 CNY and one million CNY between CNY 100,000 and CNY 5 million.



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