China considers raising caps on damages for IP violations

Apr. 14, 2015 – An official says China is considering raising its low limits on damages for intellectual property violations and strengthening litigation on trade secret theft.

The comments today by Lyu Guoqiang, commissioner of Shanghai’s Intellectual Property Office, echo a plan issued in December by the State Council, China’s top administrative authority, which called for “increasing the application of criminal fines” as part of an effort to enhance criminal enforcement and judicial protection for intellectual property.

The moves suggest a deepening commitment to IP enforcement in China, which is trying to wean its economy from low-end manufacturing and seek growth from innovation.

Patent awards are currently capped at 1 million yuan ($160,905), trademark violations at 3 million yuan and copyright violations at 500,000 yuan, fractions of the compensation offered in U.S. courts.