A session of the National People's Congress in China voted
and passed a new law that came into effect on 1 January 2021.
Importantly, the new law contains several provisions related to
intellectual property (IP).
Of interest to future patent infringement cases, the new law
contains one particular provision for punitive damages for
intentional infringement. Previously, and as is often the case in
many other jurisdictions, any damages that are awarded by the court
would hardly be sufficient to cover the actual loss suffered.
Additionally, the loss of market share is also not covered by
damages awarded, and the actual loss therefore well exceeds the
awarded damages. The new change serves to address this issue as its
purpose is to align the Chinese patent laws with their trade mark
laws that already make provision for punitive damages. Similarly, a
draft amendment has also been passed to allow for punitive damages
to be available for copyright infringement.
