NationalIntellectualPropertyAdministrationIntellectualPropertyBureausofallprovinces,autonomousregions,municipalitiesdirectlyundertheCentralGovernment,andtheXinjiangProductionandConstructionCorps:The"2025IntellectualPropertyAdministrativeProtectionWorkPlan"(hereinafterreferredtoasthe"WorkPlan")isherebyissuedtoyou.Pleaseearnestlyimplementitinlightoflocalrealities.EachprovincialintellectualpropertybureaushouldcarefullyorganizeandimplementthetasksdeployedintheWorkPlan,andsubmitsemi-annualandannualworksummariesrespectivelybyJuly15,2025,andJanuary15,2026,throughthecomprehensiveofficesystem(OA)oftheNationalIntellectualPropertyAdministration.Electroniccopiesshouldbesimultaneouslysenttothecontactemailaddress.Thestatisticaltableofintellectualpropertylawenforcementguidancecasesshouldbesubmittedtogetherwiththesummary.NationalIntellectualPropertyAdministrationMarch17,2025ThisWorkPlanisformulatedtothoroughlyimplementtheimportantinstructionsanddirectivesofGeneralSecretaryXIJinpingoncomprehensivelystrengtheningintellectualpropertyprotectionwork,resolutelyimplementthedecision-makinganddeploymentoftheCentralCommitteeoftheCommunistPartyofChinaandtheStateCouncil,effectivelypromotetheimplementationofthe"OutlineforBuildinganIntellectualPropertyPower(2021-2035)",the"14thFive-YearPlanforIntellectualPropertyProtectionandUtilization",andthe"OpinionsonStrengtheningIntellectualPropertyProtection",furtherimprovetheintellectualpropertyprotectionsystem,strengthenthewhole-chainprotectionofintellectualproperty,andhelpcreateafirst-classbusinessenvironmentthatismarket-oriented,law-based,andinternationalized.I.PromotetheImplementationofLawsandRegulations.ImplementandpublicizethePatentLawanditsimplementingregulations.CooperatewiththerevisionoftheTrademarkLawandtheRegulationsontheProtectionofLayout-DesignsofIntegratedCircuits.Implementthe"MeasuresforAdministrativeAdjudicationandMediationofPatentDisputes",the"ProvisionsonRegulatingPatentApplicationBehaviors",the"ProvisionsontheRegistrationandAdministrationofCollectiveMarksandCertificationMarks",andthe"MeasuresfortheProtectionofGeographicalIndicationProducts".Implementlawenforcementnormssuchasthe"ProvisionsonEvidenceinTrademarkAdministrativeLawEnforcement",the"CalculationMethodfortheIllegalBusinessVolumeofTrademarkInfringementCases",andthe"ProvisionsonCaseCausesofIntellectualPropertyCasesintheMarketRegulationField(forTrialImplementation)".II.ImproveandOptimizetheProtectionSystem.Promotetheimplementationofthe"ImplementationPlanfortheIntellectualPropertyProtectionSystemConstructionProject",andstrengthentheconstructionoftheintellectualpropertyprotectionpolicyandstandardsystem,managementsystem,socialco-governancesystem,securitygovernancesystem,andsupportsystem.Conductanassessmentoftheimplementationoftheintellectualpropertyprotectionconstructionprojectinatimelymanner.Establisharegularcommunicationmechanismwithprivateenterprisesandforeign-fundedenterprises,listentotheiropinionsandsuggestionsonintellectualpropertyprotectioninatimelymanner,andrespondtotheirdemands.III.StandardizetheApplicationandUseofPatentsandTrademarks.Continuouslyandseverelycrackdownonabnormalpatentapplications,malicioustrademarkregistrations,andhoardingthroughmeasuressuchasimprovingmanagementsystems,carryingoutspecialcampaigns,guidingindustryself-discipline,andstrengtheningthesupervisionofagencyinstitutions.Strengthenprofessionalguidanceoninvestigatingandpunishingtheillegaluseofprohibitedtrademarksthataredeceptiveorhaveanadverseimpact.Fortrademarksthathavealreadybeenregistered,promptlyreportthemtotheNationalIntellectualPropertyAdministrationforexofficioinvalidationinaccordancewithprocedures,andintensifyfollow-uphandlingaftertheinvalidationdecisiontakeseffect.Promotetheimplementationofthe"TrialStandardsforGovernmentProcurementRequirementsforPatentandTrademarkAgencyServices".IV.StrengthenPatentProtection.Improvetheadministrativeadjudicationreviewandreportingmechanismformajorpatentinfringementdisputes.Strictlyreviewthefactsandevidencethatmeetthecase-filingconditions,andstandardizetheissuanceofsupportingmaterials.Promotethestandardizationofadministrativeadjudicationofpatentinfringementdisputes,smooththeacceptancechannels,optimizethetrialmodel,intensifycasehandlingefforts,andhighlightthequalityandefficiencyofcasehandling.Accuratelyidentifyinfringementfacts,strictlydetermineinfringementacts,andactivelyhandlesimplecasesquicklyandcomplexcasesmeticulously.Encouragelocalitiestofullyrelyonprofessionalforcessuchastechnologyinvestigationcenters,technologyinvestigatorexpertdatabases,andintellectualpropertyappraisalinstitutionstoprovidetechnicalsupportforcasehandling.V.StrengthenTrademarkProtection.Strengthenthetimely,key,andcitedprotectionofwell-knowntrademarks.Encouragelocalitiestostrengthentheprotectionoftime-honoredChinesebrandtrademarksandwell-knowntrademarksrelatedtotheinheritanceanddevelopmentofculturalheritagebycarryingoutspecialgovernancecampaignsandestablishingenterprisecreditevaluationsystems,andseverelycrackdownon"brand-aping"andotherinfringementacts.StrengthenthesupervisionandprofessionalguidanceonconcealedinfringementactsintheInternetfield,suchasinfringementthroughkeywords,combineduseofregisteredtrademarks,andusingdesignpatentstoinfringeonothers'priorregisteredtrademarks.VI.StrengthentheProtectionofGeographicalIndications.Implementthe"ImplementationPlanfortheUnifiedGeographicalIndicationRecognitionSystem",andorderlypromotethetransformationoforiginalagriculturalgeographicalindications.Promotetheconstructionofnationalgeographicalindicationprotectiondemonstrationzoneswithhighquality,andstrengthenthesupervisionduringtheimplementationofgeographicalindicationprotectionprojects.Conductanevaluationoftheimplementationofthe"14thFive-YearPlanfortheProtectionandUtilizationofGeographicalIndications".Encouragelocalitiestousemeanssuchasorigintraceabilitytoimprovethecharacteristicqualityassurancesystemforgeographicalindicationsandtheprofessionalinspectionandtestingsystemforgeographicalindications.Establishandimprovetheworksystemfortheapproval,cancellation,andsupervisionoftheuseofthespecialmarkforgeographicalindications,andstandardizetheuseofthespecialmark.VII.StrengthentheProtectioninNewFieldsandNewBusinessForms.Activelycooperatewiththeregistrationserviceofdataintellectualproperty,organizeandcarryoutpublicityandpromotion,policyinterpretation,andregistrationguidanceforthepublicinatimelymanner,andguideandencouragethepublictoactivelycarryoutregistration.Strengthenintellectualpropertyprotectioninthefieldofartificialintelligence,andpublicizeandimplementthe"TrialGuidelinesforPatentApplicationRelatedtoArtificialIntelligence".Increasetheintensityofintellectualpropertyprotectionforforward-lookingandstrategicemergingindustriessuchasnewenergyvehicles,lithium-ionbatteries,andphotovoltaics.Improvetheworkingmechanismincombinationwithindustryandregionalcharacteristics,strengthenthehandlingofcasessuchaspatentadministrativeadjudication,andprovidepreciseguidanceservices.VIII.StrengthenProtectioninPeople'sLivelihoodandHot-spotAreas.Focusonfieldsrelatedtopublicinterestsandthevitalinterestsofthepeople,suchasfoodandmedicine,rehabilitationaids,children'stoys,householdappliances,andgreenandlow-carbontechnologies.Increasetheintensityofdailysupervisionoverintellectualpropertyinfringementandillegalactsandadministrativelawenforcementguidanceontrademarksandpatents.Forareaswhereinfringementoccursfrequently,promptlycarryoutspecialgovernanceofintellectualproperty.Increasetheintensityofintellectualpropertyprotectionintheseedindustry,andstrengthenprofessionalguidanceoninvestigatingandpunishinginfringementactssuchascounterfeitingandbrand-faking.IX.StrengthenProtectionduringMajorEventsandKeyNodes.Doagoodjobintheintellectualpropertyprotectionoflarge-scaleeventssuchasthe9thAsianWinterGames,the12thWorldGames,andthe15thNationalGames.Severelycrackdownoninfringementactssuchascounterfeitingsportseventsouvenirsandculturalandcreativeproducts.Strengthentheintellectualpropertyprotectionoflarge-scaleexhibitionssuchastheChinaImportandExportFair,theChinaInternationalImportExpo,theChinaInternationalFairforTradeinServices,andtheChinaInternationalConsumerProductsExpo.Strengthenpre-exhibitioninspections,in-exhibitioninspections,andpost-exhibitionfollow-up,smooththecomplaintchannels,andquicklyhandleintellectualpropertydisputes.DoagoodjobinintellectualpropertyprotectionduringfestivalssuchasMayDay,theMid-AutumnFestival,andNationalDay.Strengthenthesupervisionofe-commerceplatforms,supermarkets,andprofessionalmarketstopreventthecirculationofcounterfeitandinfringinggoods.Conductriskinvestigationsandspecialrectificationsatthetimewhenseasonalgeographicalindicationproductsareintensivelylaunchedonthemarket,andstrictlyregulatetheillegaluseofgeographicalindications.X.StrengthenForeign-relatedIntellectualPropertyProtection.Promotetheestablishmentofaforeign-relatedintellectualpropertyprotectionworkingmechanismwithintheregion.Improvetheforeign-relatedintellectualpropertyprotectionservicesystem,handlevariouscasesfairlyandjustly,andequallyprotectthelegitimaterightsandinterestsofforeign-investedenterprises.Strengthentheconstructionoflocalsub-centersforoverseasintellectualpropertydisputeresponseguidance,withafocusonstrengtheningguidanceservicesforprivateenterprisesinoverseasdisputes.Improvetheoverseasriskearly-warningmechanism,strengthentheearly-warningmonitoringofdisputessuchas"Section337investigations",cross-bordere-commercelitigation,andmalicioustrademarksquatting,andenhancethetimelinessandinitiativeofservingenterprises.Strengthencoordinationandconnectionwiththecommercedepartment,andstrictlymanagetheexternaltransferofintellectualpropertyrightsintechnologyexportsinaccordancewiththelaw.XI.DeepenRapidandCollaborativeProtection.Furtherpromotethehigh-qualityworkofrapidandcollaborativeintellectualpropertyprotection,strengthentheoperationandmanagementofnational-levelintellectualpropertyprotectioncentersandrapidrightsprotectioncenters,reviewandverifythepre-filingentitiesandagencyinstitutionsforpatentpre-examination,andstrengthenthemanagementofpre-examinationqualityandpublicopinionmonitoring.Aggregatevariousintellectualpropertyresources,strengthendepartmentalcommunicationandcooperation,standardizeandsmooththeconnectionprocedures,andpromotetherapidhandlingofintellectualpropertydisputes.Encouragenational-levelintellectualpropertyprotectioncentersandrapidrightsprotectioncenterstoprovideassistanceortechnicalsupportforadministrativeadjudicationandadministrativemediation.Encouragenational-levelintellectualpropertyprotectioncenterstocarryoutmulti-modetrialsofpatentreexaminationandinvalidationcases,andpromotetheconnectionbetweenpatentrightconfirmationandadministrativeadjudicationandadministrativemediationofinfringementdisputes.Encouragenational-levelintellectualpropertyprotectioncenterstosetupworkstationsinareaswithconcentratedoriginalinnovation,suchasnationallaboratoriesandlarge-scalescientificfacilities.Establishanintellectualpropertypublicservicemechanisminscienceandtechnologyparksandindustrialparks,andsupportqualifiedintellectualpropertypublicserviceinstitutionstocarryoutinformationservicessuchasoverseasintellectualpropertyrightsprotectionandinfringementearly-warning.XII.StrengthenCross-departmentalandCross-regionalCollaboration.Strengthencooperationwithpeople'scourts,procuratorialorgans,andpublicsecurityorgans,establishalong-termliaisonmechanism,andpromotetheunificationofstandardsforadministrativeandjudicialprotectionofintellectualproperty.Deepencross-regionalintellectualpropertyadministrativeprotectioncooperationinregionssuchasBeijing-Tianjin-Hebei,theYangtzeRiverDelta,thePan-PearlRiverDelta,andChengdu-Chongqing.Dosolidanddetailedworkininformationsharing,jointevidencecollection,mutualrecognitionofresults,etc.,strengthenthefollow-uphandlingoftransferredclues,strengthenthecollaborativeprotectionofkeytrademarksandgeographicalindicationsandtheevaluationofprotectioneffects,andsolvenewproblemssuchas"concealed"infringementacrossregions.XIII.PromotetheResolutionofDisputesthroughSocialCo-governance.Strengthentheadministrativemediationofpatentownershipdisputes,inventionawardandremunerationdisputes,etc.,strengthencase-handlingguidanceandlinkage,andimprovethequalityandefficiencyofmediation.Strengthentheprofessionalconstructionofpeople'smediationorganizations.Strengthentheconstructionofthemediationteambysettingupfull-timemediatorsandestablishingexpertdatabases,etc.,andenhancetheprofessionalismandcredibilityofmediation.Promotetheonlineconnectionbetweenlitigationandmediationforintellectualpropertydisputes.Strengthenintellectualpropertydisputearbitration,andexpandtheuseofarbitrationchannelstoresolveintellectualpropertydisputes.Strengthentheconstructionofthecreditsysteminthefieldofintellectualproperty,andstrengthenthedishonestypunishmentfortrademarkandpatentinfringement,malicioustrademarksquatting,abnormalpatentapplications,etc.Givefullplaytotheroleoftypicalcasesofmultiplemediationofintellectualpropertydisputes,doagoodjobincaseselection,promotion,andrelease,andintensifytheexperienceexchangeandpromotion.XIV.StrengthenProfessionalLawEnforcementGuidance.Strengthenprofessionalguidanceonlawenforcementinthefieldofintellectualpropertytoeffectivelycrackdownonvariousinfringementandillegalacts.Standardizethecaserequesthandlingworksystem.Forrequestsforinstructionsondifficultcases,conductcasesituationresearchandlegalanalysisinatimelymannerandgivereplies.Strictlyimplementthewrittenreplyandfilingsystemforprovincialintellectualpropertymanagementdepartments.Increasetheintensityoffollow-uphandlingofrepliedcases,andimprovethequalityandefficiencyofcasehandling.Doagoodjobinthereviewofcasefiles.Strengthentheselectionandsubmissionofguidingcases.XV.PromoteIntelligentSupervisionandProtection.ContinuouslyexploretheapplicationofnewtechnologiessuchastheInternet,bigdata,cloudcomputing,andblockchaininintellectualpropertysupervision.PromotetheuseoftheNationalIntellectualPropertyProtectionInformationPlatform,supportlocalitiesinacceleratingtheconstructionofintellectualpropertypublicserviceplatformsandindependentlycontrollablespecialdatabases,andstrengthendatasharingandbusinesscollaboration.Steadilypromotetheimplementationofnationalstandardssuchasthe"SpecificationsforIntellectualPropertyProtectioninCommodityTradingMarkets"andthe"IntellectualPropertyProtectionManagementonE-commercePlatforms".Encourageregionswithconditionstousebigdatatechnologytocarryoutinfringementandillegalriskmonitoring,andachievereal-timemonitoringofcluesofinfringementandillegalactsone-commerceplatforms.XVI.StrengthenPublicityandTraining.Coordinatetraditionalandemergingmedia,makegooduseofconvergedmedia,andpublicizethemeasuresandachievementsofintellectualpropertyprotectionworkthroughmultiplechannels.MakefulluseofimportantopportunitiessuchastheNationalIntellectualPropertyPublicityWeektocarryoutcentralizedpublicity,releasetypicalcasesandexperience,andcreateagoodatmosphereforstrengtheningadministrativeprotection.Strengthenthepublicityandtrainingofnewlyissuedpoliciesandregulationssuchasthe"MeasuresforAdministrativeAdjudicationandMediationofPatentDisputes"andthe"ProvisionsonEvidenceinTrademarkAdministrativeLawEnforcement",andactivelycarryoutactivitiessuchasbusinesstraining,casediscussions,andskillscompetitionstoimprovetheadministrativeprotectioncapabilitiesofgrass-rootsintellectualpropertydepartments.XVII.StrengthenOrganizationalGuarantee.Eachprovincialintellectualpropertybureaushouldearnestlyorganizeandimplement,clarifythedivisionofresponsibilities,refineworkmeasures,andmaketargetedimprovementsinresponsetotheshortcomingsanddeficienciesinintellectualpropertyprotectioninthe2024centralquality,foodsafety,andintellectualpropertyprotectionassessment.Strengthensupervisionandguidance,commendunitsandindividualswhoareresponsiblefortheirworkandhaveoutstandingachievements,andcriticizethosewhereinfringementoccursfrequentlyandtheprotectioneffectisnotgood.Promptlyurgerectification,reportworkprogresstotheNationalIntellectualPropertyAdministrationasrequired,andseekinstructionsandreportsinatimelymannerforimportantmatters.NoticeonIssuingthe2025IntellectualPropertyAdministrativeProtectionWorkPlan(qq.com)(Source:ChinaNationalIntellectualPropertyAdministrationWeChat)

TheWorldTrademarkReview(WTR)recentlyannounced2025rankings.LexFieldandfourlawyershavebeenranked.LexFieldhasbeenrankedfor12consecutiveyears,reflectingthatitsoverallstrengthcontinuestoremainamongthetoplawfirms.Theawardsinclude:LawFirm:TrademarkEnforcementandLitigation(SilverAward);LawFirm:TrademarkProsecutionandstrategy(SilverAward);SeniorPartnerYuanyueLiuwasnamedaLuminaries;PartnerAiZhangwasratedasleadinglawyerinthefieldof"TrademarkProsecutionandstrategy";PartnerLijiaoZhangwasratedasleadinglawyerinthefieldof"TrademarkProsecutionandstrategy"and“TrademarkEnforcementandLitigation”;PartnerYuanYuanwasratedasleadinglawyerinthefieldof"TrademarkProsecutionandstrategy".

Chambers&Partnersrecentlyannounced2025rankings.LexFieldandfivelawyershavebeenrankedintwocategoriesof"IntellectualPropertyLitigation"and"IntellectualPropertyNonlitigation".LexFieldhasbeenrankedfor12consecutiveyears,reflectingthatitsoverallstrengthcontinuestoremainamongthetoplawfirms.TheawardsincludeIntellectualpropertylitigation,Brand1leadinglawfirm;Intellectualpropertynon-litigation,Brand3leadinglawfirm;SeniorpartnerYuanyueLiuwasratedas"EminentPractitioner"in"Intellectualpropertynon-litigation";SeniorpartnerHongyiJiangwasratedas"Band1"leadinglawyerin"Intellectualpropertylitigation";PartnerDazhengHuangwasratedas“Brand4”leadinglawyerin"Intellectualpropertynon-litigation";PartnerHongbinZhangwasratedas“Brand5”leadinglawyerin"Intellectualpropertylitigation";PartnerLijiaoZhangwasratedas“Brand4”leadinglawyerin"Intellectualpropertynon-litigation".

InsummaryDamagesawardsarekeyissuesthatrightholderscareabout,especiallyafterChinesecourtshaveimplementedpunitivedamagessince2013.Recently,therehavebeensomemajorcasesinChinathathavegrantedaveryhighnumberofdamagesawards.ThisarticlemainlyintroducessometypicalcasesinthepastyearandtheChineselawsandregulationsondamagesawardsandpunitivedamages,whicharehelpfulforrightsholderstocollectevidenceandclaimpunitivedamagesinatrademarkinfringementcivillawsuit.DiscussionpointsRecenttrademarkinfringementcasesinChinawithhighdamagesawardsMethodsofcalculatingbenefitsobtainedbytheinfringersintrademarkinfringementcasesConsiderationsofChinesecourtsondamagesawardsApplicationofpunitivedamagesEvidencecollectiontoprovedamagesinpracticeReferencedinthisarticleChineseTrademarkLawSupremePeople'sCourtInterpretationontheApplicationofPunitiveDamagesinCivilCasesofIntellectualPropertyInfringementSupremePeople'sCourtProvisionsonSeveralIssuesConcerningEvidenceinCivilLitigationofIntellectualPropertyRightsChateauLafitePanPanSiemensArticle63oftheChineseTrademarkLawstipulatesthefollowingwaystocalculatedamages:theactuallossessufferedbytherightsholder,thebenefitsgainedbytheinfringersduetotheinfringementandareasonablemultipleofthetrademarklicensingfee.Theabovecalculationmethodsshouldbeappliedinorderandaresubjecttofivetimesofpunitivedamagesatmostiftheinfringementissevereandofbadfaith.Ifallmethodsarenotabletodeterminethedamages,thecourtshallawardcompensationbydiscretionintherangeofunder5millionyuan(statutorydamages).[1]Inpractice,statutorydamagesaremostlyapplied.After2019,punitivedamageshaveincreasinglybeenappliedbythecourts.Whencalculatingdamages,themostcommonlyapplicablemethodiscalculatingthebenefitsgainedbytheinfringers.Inthepastyear,therewereseveralhighdamagesawardscasesinChina,andtheyapplieddifferentmethodstocalculatethedamagesamounts,whichdemonstratesthecurrentjudicialtrendtowardspunishinganddeterringinfringers.Belowarethreetypicalcases,whichwerelistedinthenationaltop10ofintellectualpropertycasesorthelocaltop10ofintellectualpropertycases.ChateauLafitecaseTheplaintiffwasthetrademarkholderof‘LAFITE’and‘CHATEAULAFITEROTHSCHILD’forwine.[2]Theinfringersregisteredandusedthetrademarks‘CHATEAULAFITEinChinese’and‘LAFEIMANOR’forwine.TheCourtdecidedthatbothmarksweresimilartotheplaintiff’smarksandsuchuseconstitutedtrademarkinfringement.Asforthedamagesawards,theplaintiffclaimedtocalculatethembasedonthebenefitsgainedbytheinfringers,namely,salesvolumetimesprofitrate,andclaimedpunitivedamages.TheCourtthoroughlyexaminedalltheevidencesubmittedbyeachpartyandmadethefollowingcalculation.First,basedonthesalesinvoicesandcustomsdeclarationformsofimportingwine,theCourtcalculatedthewholesalesvolumeoftheinfringinggoods.Second,theCourtneededtocalculatetheprofitratebycomparingtheinfringinggoods’sellingpriceandcostprice.Astheinfringinggoodsweresoldindifferentunits,suchasbottle,boxandset,etc,theCourtdecidedtocalculatethesameperbottle,whichistheminimumsellingunit,bydividingthewholesalesvolumeandnumberofsoldbottlesextractedfrominvoices.ThecostpriceofinfringinggoodswascalculatedbasedonthecustomsdeclarationformsasthewinewasimportedtoChina.Pursuanttothepriceofeachlitreofimportedwineandthefactthateachbottleofwinecontains0.75litre,theCourtwasabletocalculatethecostpriceperbottle.Therefore,theprofitrateequalledto:(Sellingpriceperbottle–costpriceperbottle)SellingpriceperbottleThebenefitstheinfringersgainedcouldthenbecalculatedaccordingly.Finally,asfortheclaimofpunitivedamages,theCourtconsideredthehighreputationofLAFITE,theextensivesalesscalesoftheinfringersandthemisleadingadvertisingoftakingafreerideonLAFITE’sreputation,andgrantedtwotimesthepunitivedamages.PanPancaseTheplaintiffwasthetrademarkholderof‘PanPan’,whichisareputablebrandofsecuritydoorsinChina,anditshouselogoisapanda.[3]Theinfringersregisteredacompanywiththetradename‘XinPanPan’engaginginthesamebusinessofconstructionmaterials,includingsecuritydoorsandwindows.Theinfringersalsoprominentlyused‘XinPanPan’asatrademarkextensively,includinginthedomainname,website,WeChataccount,app,advertisingbrochuresandofflineshops.TheCourtdecidedthatbothparties’marksweresimilarandwereusedonsimilargoods.Theinfringers’behavioureasilycausedconfusionandconstitutedtrademarkinfringement.Inthiscase,theplaintiffwasnotabletocollecttheinfringers’salesdata,andtheinfringersstatedtherewerenoproperfinancialdocumentstocalculatetheirprofitsduringtheinfringingperiod(2017–2019).Underthiscircumstance,althoughtheevidencesubmittedbytheplaintiffwasnotverysufficientoraccurate,itcouldbeusedasvalidevidenceoftheinfringers’profits.Theevidencesubmittedbytheplaintiffmainlyincludedadvertisingmaterialin2018inwhichtheinfringersdeclaredtheywouldreachonebillionyuaninproductionvalueanda50percentgrowthrateperyearinthenextfiveyears.Basedontheaforesaidstatistics,theCourtwasabletofigureoutthetotalsalesvolumefrom2017to2019tobe361millionyuan.Asfortheprofitrate,theCourtadoptedanationalaverageprofitrateof7.5percentinthefurnituremanufacturingindustryin2017.Therefore,theprofitgainedfromtheinfringementwas27.075millionyuan(361times7.5percent).TheCourtgrantedfourtimesthepunitivedamagesinthiscase,duetothefollowingconsiderations:thelegalrepresentativeoftheinfringershadbusinessrelationshipwiththeplaintiffandshouldhaveknownabout‘PanPan’trademark;theinfringersnotonlyplagiarisedthe‘PanPan’mark,butalsousedasimilarpandalogo;theinfringerssometimesomittedthe‘Xin’characteranddirectlyused‘PanPan’;evenafterthe‘XinPanPan’markwasinvalidated,theinfringersstillcontinuedtheinfringement;andtheinfringers’businessexpandedto12provincesand180distributorsandnearly100offlineshops.Thedamagesawardsweredeterminedtobe108.3millionyuan(27.075times4)andmorethantheplaintiff’sclaimof95millionyuan.Therefore,theplaintiff’sclaimwasfullysupportedbythecourt.SiemenscaseSiemensisafamousbrandofhouseholdelectricappliance.Theinfringersused‘ShanghaiSiemensElectricsCo,Ltd’(ashellcompanyregisteredinSeychelles)onitswashingmachines.TheCourtdecidedtheabovecompanynamewasusedasatrademarkwiththefunctionofidentifyingthesourceand‘Siemens’wasthedistinctivepart,whichwasidenticalwiththeplaintiff’smark.Suchbehaviourconstitutedtrademarkinfringementandtheuseof‘Siemens’astradenameconstitutedunfaircompetition.[4]Theplaintiffclaimeddamagesawardsof100millionyuanbasedontheinfringers’benefitsduetotheinfringement.[5]However,theplaintifffailedtosubmitfinancialinformationoftheinfringerstoprovethis.TheCourtdemandedtheinfringerssubmittheiraccountbookstoascertainthefacts,buttheinfringersdidnotcooperate.TheCourtthusconsideredthefollowingpointstodeterminethedamages:SiemenswasanenterpriseintheFortuneGlobal500anditstrademarkhadacquiredahighreputation.TheinfringersobviouslyactedinbadfaithastheyshouldhaveknownaboutSiemens,andtheyalsoplagiarisedotherbrands,suchasPhilipsandAOSmith.Thescaleofinfringementwasextensive,consideringtheplaintiffdiscoveredinfringingwashingmachinesinmanyprovinces,andtheinfringersclaimedtohavemorethan1500distributors,withsalesvolumesof1.5billionyuanperyear,andtheirbusinesslastedforaroundfiveyears.Referringtotheannualreportsofotherpeeroperatorsintheindustryofwashingmachines,theCourtadmittedanaverageprofitrateof35percent.Outofthetotalsalesvolumeof1.5billionyuanforallwashingmachines,theCourtdecided1/15ofthemwerebrandedwithaninfringingmarkbydiscretion.Hence,theinfringers’benefitswouldbe1.5billiontimes1/15times35%times5,namely,175millionyuan,whichwasbeyondtheplaintiff’sclaim.Basedontheabove,theplaintiff’sclaimof100millionyuanshouldbefullysupported.CalculationofbenefitsobtainedbyinfringersDamagesawardsareanimportantpartofincreasingthedeterrenceofcivilaction.Ifinfringerscouldmakemoreprofitsthandamagesawards,civilactionwouldcertainlynotbeabletostopinfringement.Ontheotherhand,ChineselawsfollowthePrincipleofIndemnitythatdamagesawardsshouldcovertherightholders’lossesbutshouldnotbemore,topreventmaliciouslawsuits.Inpractice,ithasalwaysbeenachallengeforrightholderstocollectsufficientevidencetoaccuratelycalculateinfringers’benefits,andthecourtisusuallyinclinedtodecidedamagesawardsbydiscretion,whichiseasierwithoutmanycalculations.Theabovethreecasessharethefollowingcommonpointsthatallowthecourttodetermineveryhighdamagesawards:therightholdershadsomebasicevidencetoprovetheinfringers’benefits,suchasinvoices,customsdeclarationforms,statementsfromtheinfringersinsomeadvertisingmaterials;andthebenefitswereclearlymuchmorethanthestatutoryamount(5millionyuan).Undersuchcircumstances,itwouldbeunconscionabletodecidethedamagesawardsundertherangeof5millionyuan.Thereisanotherproductivewayforrightholderstoclaimdamagesbyrequiringinfringerstoprovidefinancialstatistics.TheChineseTrademarkLawstipulatesthat:Inordertodeterminetheamountofdamages,whentherightholdershavemadeeveryefforttoprovideevidence,andtheaccountbooksandmaterialsrelatedtotheinfringementaremainlyinthepossessionoftheinfringers,thecourtmayordertheinfringerstoprovidesuchaccountbooksandmaterialsrelatedtotheinfringement;iftheinfringersdonotprovidethesameorprovidefalseaccountsandmaterials,thecourtmayrefertotherightsholders’claimsandprovidedevidencetodeterminetheamountofdamages.[6]Furthermore,theSupremePeople'sCourtProvisionsonSeveralIssuesConcerningEvidenceinCivilLitigationofIntellectualPropertyRightsstipulatesthat:Thecourt,inaccordancewiththelaw,requiresthepartiestosubmitrelevantevidence.Ifapartyrefusestosubmitwithoutjustifiablereasons,submitsfalseevidence,destroysevidence,orengagesinotheractsthatrendertheevidenceunusable,thecourtmaypresumethattheclaimsoftheotherpartyconcerningthematterstobeprovedbysuchevidenceareestablished.[7]TheabovelawsandregulationsbasicallyformthesystemofproofimpairmentinChinaandareveryhelpfulforrightholderstoreducetheirliabilityofproof.Withtheabovesupport,therightholdersfirstcollectsomebasicevidenceoftheinfringers’profits,suchas:salesdatadisplayedone-commerceplatforms;theinfringers’self-admissionatsomeeventorinadvertisingmaterials(especiallyTikTokvideosandLittleRedBookposts);andtheaveragerateofprofitintheindustry.Basedonthisevidence,therightholdersfurtherfilearequestwiththecourtforaccountbooksandmaterialsrelatedtotheinfringementfromtheinfringers.Iftheinfringersdonotcooperatewiththecourt’sorder,theyshallbearthenegativeconsequences,andtherightholders’evidenceandcalculationswillbeverylikelytobeadmittedbythecourt.PunitivedamagesPunitivedamagesarearelativelynewsysteminChina.[8]Theyarepredicatedontheplaintiff'srequest,andthecourtmustnotapplypunitivedamagesonitsowninitiative.Punitivedamagesmustbeclaimedbeforetheconclusionofthecourtdebateinthefirstinstance.Applyingpunitivedamagesrequirestwopreconditions:theinfringementissevereandinbadfaith(intentional).TheSupremePeople'sCourtInterpretationontheApplicationofPunitiveDamagesinCivilCasesofIntellectualPropertyInfringement(theJudicialInterpretationonPunitiveDamages)explainsindetailtheapplicationofpunitivedamages.In‘severe’cases,theJudicialInterpretationonPunitiveDamagesliststhefollowingconditions:committingthesameorasimilarinfringementagainafterbeingadministrativelypenalisedoradjudicatedbythecourtforinfringement,theinfringeragaincommitsthesameorasimilarinfringement;engagingintheinfringementofintellectualpropertyrightsasabusiness;abricating,destroyingorconcealingevidenceoftheinfringement;refusingtocomplywithpreservationrulings;theprofitsobtainedfromtheinfringementorlossessufferedbytherightholderaresubstantial;theinfringementmayendangernationalsecurity,publicinterestorpersonalhealth;andothercircumstancesthatcanbedeterminedassevere.[9]Inbadfaithcases,theJudicialInterpretationonPunitiveDamagesliststhefollowingconditions:theinfringercontinuestocommittheinfringementafterbeingnotifiedorwarnedbytherightholderoraninterestedparty;theinfringeroritslegalrepresentativeoradministratoristhelegalrepresentative,administratororactualcontrolleroftherightholderoraninterestedparty;thereexistsalabour,service,cooperation,licensing,distribution,agency,representationorothersuchrelationshipbetweentheinfringerandtherightholderoraninterestedparty,andtheinfringerhashadaccesstotheinfringedintellectualproperty;therehavebeenbusinessdealingsornegotiationsforthepurposeofreachingacontractbetweentheinfringerandtherightholderoraninterestedparty,andtheinfringerhashadaccesstotheinfringedintellectualproperty;theinfringerengagesinpiracyorcounterfeitingregisteredtrademarks;andothercircumstancesthatcanbedeemedasbadfaithorintentional.[10]Ifatrademarkinfringementcasemeetstheaboverequirements,thenpunitivedamagescanbeconsidered.Thepunitivedamagesarecalculatedbybasenumbertimesamultiple.Asmentionedabove,thebasenumbershouldbedeterminedbytheactuallossessufferedbytherightholder,thebenefitsgainedbytheinfringerduetotheinfringementandareasonablemultipleofthelicensingfeeforthetrademark.Asforthemultiple,theJudicialInterpretationonPunitiveDamagesstipulatesthefactorstoconsider,namely,thedegreeoftheinfringers’subjectivefaultandtheseverityoftheinfringementact,etc.[11]Theseconsiderationsarequitegeneral,soinpracticethemultipleismainlydecideddiscretionarilybythecourt,andthemultipledoesnothavetobeaninteger,accordingtotheunderstandingandapplicationoftheJudicialInterpretationonPunitiveDamages.[12]Technically,punitivedamagesonlyapplywhenthedamagescanbecalculatedbytheactuallossessufferedbytherightholder,thebenefitsobtainedbytheinfringerduetotheinfringementorthemultipleofthelicensingfeeforthetrademark.Ifthecourtappliesstatutorydamages,punitivedamagesshouldnotbeadopted.Thisismainlybecauseoftheconsiderationthatwhenthecourtdecidestheamountofstatutorydamageswithinthe5millionyuanlimit,itshouldhaveconsideredthefactorsofthereputationoftherightholder,theseverityoftheinfringementandthebadfaithoftheinfringer,etc,whichalreadyincludethefactorsofpunitivedamages.Inthepastfewyears,therehavebeensomecasesthatadoptpunitivedamagesandstatutorydamagesatthesametime.Thatistosay,forthedamagesthatcanbecalculatedandascertained(withevidencesuchassalesdata),thecourtcalculatesthesameandrulespunitivedamagesaccordingly;forthedamagesthatcannotbeaccuratelycalculated(withoutsufficientevidence),thecourtdecidestheamountatitsdiscretion.Thefinaldamagesawardswillbethesumoftheabovetwoparts.[13]Thismainlyhappenswhentheinfringementissevere,andeachpartofdamagesalonemaynotbeabletocovertherightholders’lossesortodetertheinfringers.Thisisanewandmeaningfulexplorationofthedamagesawardssystemthatcanhelptherightholderstoreducetheirburdenproofandbetterdefendtheirinterests.Asweknow,itischallengingforrightholderstohavetheexactfinancialinformationoftheinfringers,especiallyconsideringthatmanyinfringersinChinaarerathersmall-scale,withnostandardisedfinancialmanagement.Therefore,withthisnewtendency,punitivedamagescanbeusedmoreoftenandplayamoreimportantroleinfuturetrademarkinfringementcases.Currently,theexaminationcriteriaofdamagesawardsandpunitivedamagesstillvariesindifferentprovincesandcourtsinChina,especiallywhentheevidenceisinsufficienttocalculatethedamagesfrominfringers’benefitsaccurately.Somecourtssticktothestatutorydamagesandhaveahighstandardforevidence,somearemoreopentodiscretionarydamagesandarewillingtoapplypunitivedamageswhenthereisonlybasicevidence.Forrightsholders,itisadvisabletoarrangeathoroughinvestigationagainsttheinfringersbeforeinitiatingthelawsuitandtrytoestablishjurisdictioninthemoreopencourts.Herearetwoinsightsfortherightholdersindefendingtheirrightsthroughtheabovethreetypicalcasesandthejudicialinterpretationonpunitivedamages:Theyshouldactivelydefendtheirrights,suchasfilingoppositionsorinvalidationsagainstmalicioustrademarks,orsendingdemandletterstoinfringers,becausethesemeasurescanleadtotheinfringers’activitiesbeingconsideredrepeatedinfringements,whichcanthenbesubjecttopunitivedamages.Theyshouldfullyutilisesalesdatadisclosedbyinfringersthroughtheirwebsiteandotherpublicchannelstoproveinfringers’profits.[1]Article63oftheChineseTrademarkLaw.[2]Oneofthenationaltop10intellectualpropertycasesinChinain2023,[2022]ZuiGaoFaMinZhongNo.313.[3]Oneofthetop10intellectualpropertycasesinJiangsuProvincein2023,[2022]ZuiGaoFaMinZhongNo.209.[4]Oneofthenationaltop10intellectualpropertycasesinChinain2023,[2022]ZuiGaoFaMinZhongNo.312.[5]Theplaintiffclaimeddamagesbasedonunfaircompetition,notthetrademarkinfringement.Butconsideringthespiritoftrademarklawandanti-unfaircompetitionlawondamagesawardsisthesame,andthiscaseisratherrepresentative,itisincludedinthearticle.[6]Article63ofChineseTrademarkLaw.[7]Article25oftheSupremePeople'sCourtProvisionsonSeveralIssuesConcerningEvidenceinCivilLitigationofIntellectualPropertyRights.[8]PunitivedamageswereincludedinChineseTrademarkLawin2013whenthemultiplewasthreetimesatmost.In2019,theChineseTrademarkLawwasamended,andthemultiplewasraiseduptofivetimes.In2021,punitivedamageswereaddedintoCivilCode.[9]Article4oftheJudicialInterpretationonPunitiveDamages.[10]Article3oftheJudicialInterpretationonPunitiveDamages.[11]Article6oftheJudicialInterpretationonPunitiveDamages.[12]https://www.court.gov.cn/zixun/xiangqing/297121.html.[13][2022]Hu73MinZhongNo.187.[2020]Yue0104MinChuNo.46217.

Recently,IntellectualAssetManagement(“IAM”)hasannouncedits2024rankings.LexFieldhasbeentop-rankedforthecategoryoflitigationandtransaction,withaconsecutiveTier-1rankingforlitigation.Onindividualpractitioners,seniorpartnerHongyiJiangcontinuestoberankedinTier1forlitigation,partnerDavidHuangisrankedinbothlitigationandprosecution.TherankingsreflectthebreadthanddepthofLexField'spatentcapabilities.

Inthe2024,IPrankingsrecentlyannouncedbytheleadingIPmagazineManagingIntellectualProperty(MIP),LexFieldhasbeentop-rankedforthecategoryofpatentdisputes，trademarkcontentiousandtrademarkprosecution,thisisalsothelawfirm'slistforthe13thconsecutiveyear.EachyearMIP'sfull-timeresearchteamobtainsinformationfromthousandsoffirms,IPpractitionersandtheirclientsthroughinterviews,emailandonlinesurveys.Intheirassessment,theytakeintoconsiderationnotonlytheclients'feedbackasacrucialfactor,butalsothefirm'sworkload,qualityofworkandtheIPteam'soverallcapability.