China Raises Penalty for IPR Infringements

China has announced a series of measures designed to enhance the protection of intellectual property rights (IPR) within the country on a two-step basis.

As outlined in the Opinions on Strengthening the Protection of Intellectual Property Rights, the following objectives have been agreed:

• By 2022
  Every effort will have been made to curb IPR infringements, while the related arbitration / compensation procedures – including the establishment of true entitlement, the overall cost of taking action and the low compensation provided to wronged parties – will be streamlined and / or optimised.

• From 2025 Onwards
  A high level of IPR protection will have been established in China, with every effort made to maintain it in perpetuity.

In a related move, the National Intellectual Property Administration has announced the fines payable on fraudulent or otherwise illicit trademark registrations have been increased from three times the actual damages incurred – as originally specified in the country’s recently-adopted Trademark Law – to five times the actual damages.

Source: National Intellectual Property Administration