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Shenzhen Leads in Clarifying Rules of Punitive Damages for IP Infringement in China - China Legal News

Sat, 16 Jan 2021
Categories: China Legal Trends



On 15 Dec. 2020, Shenzhen Intermediate People's Court issued the Guiding Opinions on the Application of Punitive Damages to Disputes over Civil Infringements of Intellectual Property Rights (关于知识产权民事侵权纠纷适用惩罚性赔偿的指导意见). 

China is trying to support the right holders' claims for punitive damages in IPR infringement litigation. Shenzhen, for its part, has been making further attempts to establish specific rules in this area.

According to the Opinions, the court can determine the amount of damages at a reasonable multiple of the license fee. In determining such multiple, the court will comprehensively consider the following factors: (1) the degree of malice of the infringer; (2) the loss suffered by the right holder; (3) the profit of the infringer; (4) the adverse impact of the infringement on the industry or society; (5) the discretionary determination of the compensation base; and (6) other factors.

According to the Shenzhen Intermediate People's Court, it has made a judgment on punitive damages of up to CNY 100 million.

Contributors: Yanru Chen 陈彦茹

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