China applies harsher law on Patent infringement

Patent infringement may soon lead to fines of up to 5 million yuan (781,760 U.S. dollars), according to a draft amendment released Wednesday.

The draft revision of the Patent Law was published by the Legislative Affairs Office of the State Council to seek public opinion.

The current law stipulates that compensation amounts must be decided based on actual losses by the obligee or gains by the infringer. The new draft allows for compensation of up to three times the losses or gains.

Under the current law, a plaintiff can claim compensation ranging from 10,000 to 1 million yuan if losses of the obligee cannot be confirmed. The draft raises the amounts to 5 million yuan.

China’s Patent Law was enacted in 1984 and was revised a third time in 2008.