People who violate patents will face higher fines, according to a draft revision to China’s patent law.
The draft, submitted to the Standing Committee of the National People’s Congress, China’s top legislature, for the first review on Sunday, aims to strengthen the protection of intellectual property rights and encourage innovations by IP holders.
In the draft, the fine range for violators is raised from a minimum of 100,000 yuan ($14,490) to 5 million yuan when the loss to patent holders, and the benefits gained by violators, cannot be determined. The current range is from 10,000 yuan to 1 million yuan.
"The draft is meant to solve new patent problems, such as difficulties in collecting evidence in patent lawsuits, online IP infringement and low compensation for victims of patent infringement," said Shen Changyu, Commissioner of the National Intellectual Property Administration of China (CNIPA), as he explained the draft to the legislature. He also pointed out that it is necessary to significantly increase the financial penalties for IPR infringements to better exert the deterrent effect of the law.
In addition to compensation, the infringer could be held responsible for expenses incurred in the investigation, appraisal, and assessment of the damage, according to the draft.