China Issues New Judicial Interpretation On Punitive Damages For IP Infringement

The new interpretation refines the legal standards for punitive damages based on experience gained since the previous rules were issued in 2021. It aims to make the rules more practical, unify court decisions, and offer clearer guidance for rights holders and the market.

Key clarifications in the new interpretation include the following:

First, it provides more detailed rules for determining when a defendant’s conduct is “intentional” or “serious”. For example, it treats as “intentional” a situation where a defendant, after settling with the plaintiff and agreeing to stop the infringement, later commits the same or a similar act. It also gives a clearer definition of “making a business out of infringement”.