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ARTICLE · 22 MAY 2026

Punitive Damages In Intellectual Property Civil Cases

China's Supreme People's Court has issued a comprehensive 2026 Interpretation that fundamentally reshapes the punitive damages landscape for intellectual property disputes. The new framework introduces stricter procedural requirements, clearer standards for proving intentional infringement, and detailed methodologies for calculating damages multipliers. How will these refined rules impact litigation strategy and enforcement outcomes for rights holders operating in China's evolving IP regime?

ChinaIntellectual Property

Supreme People Court (SPC) 2026 Judicial Interpretation.

The 2026 SPC Interpretation further refines and supplements the rules set out in the 2021 version and addresses practical issues arising in judicial practice over recent years, including determining of “intent”, assessing “serious circumstances,” and the calculation of damages.  

Punitive damages have become a core feature of high-value IP disputes in China. The 2026 Interpretation represents a mature and structured regime: clearer procedural rules, more predictable standards for intent and seriousness, and a more workable methodology for damages calculation. 

On 20 April 2026, the Supreme People’s Court (SPC) released the Interpretation of the SPC on the Application of Punitive Damages in the Trial of Civil Disputes over Intellectual Property Infringement (Fa Shi [2026] No. 7), which came in force on 1 May 2026 and replaces the 2021 version (Fa Shi [2021] No.4).

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