SPC Issues Judicial Interpretation on Punitive Damages in IP Infringement Cases

March 26, 2021 | BY

Susan Mok

Dragon Wang and Yannan Li of Sitao IP discuss the several aspects of the SPC's recent judicial interpretation on punitive damages, namely clarity provided to what is meant by "willful" and "malicious", serious circumstances, how calculation base of punitive damages is determined and key takeaways from the interpretation

To accurately apply punitive damages and clarify the judgment standards of courts at all levels, the Supreme People's Court (SPC) issued the Interpretation on Application of Punitive Damages in the Trial of Civil Intellectual Property Infringement Cases (the Interpretation) (关于审理侵害知识产权民事案件适用惩罚性赔偿的解释), which became effective on March 3, 2021. There are seven articles in the Interpretation that clearly stipulate the scope, content and time of the application, subjective and objective factors, base calculation, multiple determination and the likes of punitive damages, etc. covering all the aspects of the application of punitive damages.

It is important to understand the meaning of what is "willful" or "malicious", "serious circumstances", and how to determine the calculation base mentioned in the Interpretation.

In order to clarify the relationship between "willful" and "malicious" in respective departmental laws, Article 1 of the Interpretation states that the meaning of "willful" and "malicious" in respective departmental laws should be consistent

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