When people think of patent disputes in China, they often
imagine high-volume litigation, with thousands of cases filed each
year. What many companies do not realise, however, is that the risk
profile has changed dramatically. Punitive damages, which go beyond
compensating for actual loss and are aimed at punishing intentional
or malicious infringement, are now being applied by Chinese courts
with growing frequency. This development has caught many businesses
off guard, particularly foreign companies entering the Chinese
market under the assumption that damages would remain relatively
low.
The shift in litigation
In 2024 alone, Chinese courts applied punitive damages in 460
cases of severe infringement, marking a 44.2% increase from 2023.
The awards have also grown dramatically, with cases involving trade
secrets and software seeing damages as high as 640 million yuan.
Across provinces like Beijing, Jiangsu, Guangdong, and Shanghai,
courts are not just granting
