Meaning
A legal method used by courts in China to determine the financial compensation for intellectual property infringement when actual losses or illegal gains cannot be calculated provides a predictable remedy for right holders. Through statutory ip damages assessment, the court awards a monetary sum within limits defined by intellectual property laws. This mechanism ensures that right holders receive compensation even when financial records are unavailable or incomplete.
Judicial Discretion
Judges exercise broad authority to determine the final award within the statutory ranges. The maximum statutory limit for trademark and patent infringement has been increased under recent legal amendments. This statutory range is designed to deter infringement and compensate for the difficulties of proving financial damage in complex cases.
Assessment Factor
The court analyzes several elements to determine the appropriate amount within the statutory range. These elements include the type and popularity of the infringed right, the duration of the infringement, and the scale of the infringer’s business operations.
Legal Boundary
This method is a secondary option that applies only after the plaintiff demonstrates that actual losses, illegal profits, and reasonable licensing fees cannot be determined. This boundary prevents parties from using statutory damages as a shortcut to avoid disclosing their financial records when calculation is possible.
