Beijing courts increase use of punitive damages in IP cases

Beijing courts saw a sharp rise in the application of punitive damages in intellectual property cases in 2024, with 46 cases involving such damages, a nearly 77 percent increase from the previous year, according to the Beijing High People's Court.

The highest amount of compensation awarded reached 70.56 million yuan ($9.68 million), underscoring the growing cost and legal risk for intellectual property infringers, the court said.

The Haidian District People's Court, one of the district-level courts in the capital, reported Thursday that it imposed punitive damages in 13 IP cases last year, with total compensation exceeding 30 million yuan. That amount ranked first among all district-level courts in the city.

Most of the punitive damages targeted large-scale production and sale of goods that infringed on copyrights, trademarks and trade secrets, the court said.

Alongside stiffer penalties for violators, courts across Beijing also focused more on handling patent cases tied to core technologies, key industries and emerging sectors. The high court said the number of such disputes surpassed 3,500 in 2024.

The Haidian court reflected this trend, reporting that it handled more than 5,300 cases over the past three years related to "new quality productive forces," including data, artificial intelligence, autonomous driving and smart home technologies.

To better manage these technically complex cases, Beijing judges provided more legal services to companies in major science and technology parks in 2024. Courts also sought to raise public awareness by inviting residents to attend IP trials, the high court said.

The Haidian court stressed the importance of legal education in boosting IP protection. It encouraged enterprises to improve their ability to manage IP risks while advancing innovation.

The court also highlighted the role of industry associations in connecting businesses, markets and government agencies. It said these associations should maintain regular communication and conduct research on emerging IP issues, and that they should organize learning sessions to help enterprises understand new IP laws and regulations.