A new draft section on torts of China's civil code introduced punitive¹ damages for the infringement² of intellectual property rights (IPRs).

 

中国民法典对侵犯知识产权的行为将引入惩罚性赔偿制度。

 

The new draft has been submitted to the ongoing³ session of China's top legislature which opened Sunday.

 

Together with five other sections, the previous draft went through a first reading at the August session of the standing⁴ committee of the National People's Congress (NPC).

 

The new draft stipulates⁵ that if an intellectual property right is intentionally⁶ infringed⁷ upon and the circumstances are serious, the infringed shall have the right to claim punitive damages.

 

It is necessary to significantly increase the financial penalties for IPR infringements⁸ to better exert the deterrent⁹ effect of the law, said Shen Chunyao, deputy head of the NPC Constitution and Law Committee, when presenting the draft to lawmakers.

 

The draft also contained new provisions concerning the liability for environmental damage.

 

In addition to compensation, the infringer¹⁰ could be held responsible for expenses incurred¹¹ in the investigation¹², appraisal¹³, and assessment¹⁴ of the damage, according to the draft.

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