China -  Chinese law firm

How is a trademark owner supposed to deter the exportation of infringing goods?

Recent research has shown that China has sufficient laws and regulations to hold the exporter civilly liable for trademark infringement. This will force exporters to pay significant compensation to the rights owner and will act as strong deterrent to exporting counterfeit goods.

The legal basis for imposing civil liabilities on the exporter includes Artile 118 of the General Principles of Civil Law of the PRC which states that the trademark owner is entitled to compensation from the infringer. Also Article 56 Article 56 of the Trademark Law of the PRC sets out various elements to be taken into account when determining the amount of compensation to be awarded, including the illegal gains obtained by the infringer from the infringement, the loss suffered by the rights owner including its “reasonable costs” in stopping the infringement, and a right to statutory damages of no more than RMB 500,000, to be awarded by the court according to the details of the infringement.

In addition to these regulations, there are a number of other articles, detailing the various forms of copyright infringement and the corresponding monetary penalties applicable to said infringement.



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