Calculation Of Damages Based On Multiple Of Royalties

According to the New amendment of China's Patent Law (effective from 1^st June, 2021), It is made clear that the court follows below orders to determine the amount of damages in patent infringement cases:

(1) The actual loss suffered by the patent owner or the benefits obtained by the infringer;

(2) The reasonable multiple of the royalties of the patent; and

(3) The statutory damages in a range of CNY 30,000 – 5,000,000.

Among them, the reasonable multiple of royalties is normally used only if the parties can't prove (1) the actual loss of the patentee and the benefit obtained by the infringer.

In practice, the court is prudential in using reasonable multiple of the royalties for determining the damages. The reason is that: