China’s National Intellectual Property Administration (CNIPA) and the State Administration for Market Regulation (SAMR) jointly released a new method for calculating penalties based on illegal business turnover in trademark infringement cases. The method will be used for administrative proceedings, considering that, even though it is not possible to award damages in said instance, the SAMR can impose high penalties to individuals involved in infringement cases.
Accordingly, this measure aims to standardise the process for determining fines, focusing on revenue generated from infringing activities. The Notice issued by the Entities provides clear guidelines regarding the ways of calculating the value of infringed goods, by also ensuring penalties are proportional and follow principles of legality, rationality, and others.
The overall purpose of the initiative is to promote and enhance strict enforcement in trademark infringement cases, create an effective deterrent effect, support fairer market practices and safeguarding the legitimate rights and interests of trademark holders.
