Recently, the Supreme People’s Court promulgated the Interpretations on the Application of Punitive Damages in the Trial of Civil Cases Involving Infringement of IP Rights (hereinafter the “Interpretations”), which came into effect on March 3, 2021.

The Interpretations stipulated in detail the scope of application of punitive damages in civil cases involving infringement of IP rights, the standard for identifying intent and seriousness, as well as the base amount and multiple for the calculation of the damages. The Interpretations aim to guide the courts at all levels to correctly apply the punitive damages and impose punishments upon serious infringement of IP rights with the clarified standards for adjudication under the Interpretations. The promulgation of the Interpretations is an important step for implementing the mechanism of punitive damages and demonstrates the determination of the People’s Courts in comprehensively strengthening the judicial protection for IP rights, and is therefore of great significance for further optimization of the legal environment supported by scientific innovation.

(Source: Supreme People’s Court)