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[co-author: Stefaan Meuwissen]
The new Interpretation provides flesh to the bare bones of the provisions on punitive damages contained in China’s specific IP laws, which largely omit details on their specific application. The Interpretation clarifies particularly when the conditions for punitive damages, i.e. serious and intentional infringement, will be considered to be met; the basis on which the courts should calculate punitive damages; as well as guidelines for the specific amount at which punitive damages may be set by the courts. The Interpretation will doubtlessly have a profound impact on China’s IP practice, and the clarification it brings will encourage IP owners to make increasing use of punitive damages in China.
April 14 2021
It is generally considered that the Anti-Unfair Competition Law of the People s Republic of China offers supplementary protection to IP. The Anti-Unfair Competition Law also regulates the unfair competition acts in the field of IP, thus it could be applied against abuse of IP rights.
Scope of protection
As defined in Article 2 of the Anti-Unfair Competition Law, the act that violates this law, disrupts market competition order or infringes the legal rights and interests of other business operators or consumers during production or distribution activities belongs to the Unfair Competition Act.
It covers the act of confusion, commercial bribery, false or misleading commercial promotion, infringement on trade secret, prize-giving sales, fabricating or disseminating false or misleading information to damage the reputation of a competitor and the online market competition. There is also a catch-all general clause so that the Unfair Competition
IP experts have come together in the 2021 China IP Focus to provide practical insight and analysis for businesses to navigate China's evolving IP landscape.
IP experts have come together in the 2021 China IP Focus to provide practical insight and analysis for businesses to navigate China's evolving IP landscape.