The introduction of a punitive damages system for intellectual
property rights violation has won huge acclaim among industry
insiders after Premier Li Keqiang proposed the move in his
Government Work Report for the year. Such punitive damages would
involve compensation that exceeds the plaintiff's actual loss,
creating a greater deterrence against such violations.
The current compensatory damages system, aims only to cover the
losses of the rights owners. "We will see that the strong
protection of property rights and the fluid flow of production
enable a significant increase in market dynamism and public
creativity," Premier Li said in his report.
Zhou Qiang, head of the Supreme People's Court, said in his
work report that the judicial authorities will use the punitive
damages system in future trials to resolve the problem that rights
violation incurs low costs while defending IP rights brings about
high costs. Courts nationwide have heard about 683,000
