Intellectual Property Rights Protection in China: Trends in Litigation and Economic Damages

Abstract:     
As a result of external pressures and to meet its own economic objectives, China has been moving its intellectual property rights (IPR) regime closer to those found in many more developed nations. As China's economy grows, its transition from manufacturing-based to knowledge-based production, more comprehensive laws, and more attention to enforcement have led to an increase in the number of IPR infringement cases being brought before the courts or taken up through China's administrative procedures. In this paper, the authors analyze the changing role of IPR enforcement in China and examines trends in damages awards in IPR cases in China, using a proprietary database, developed by NERA, of cases filed in China between 2002 and 2008. The authors find that, while there has been a marked increase in IPR infringement cases being brought before Chinese courts and, consequently, in the frequency of damage awards over the past decade, the damages both claimed and awarded tended to be very small compared to those in other jurisdictions and compared to the likely degree of harm caused.

Number of Pages in PDF File: 21

Keywords: China, intellectual property, damages, litigation, patent, trademark, copyright

working papers series