"In the case that the product has been ordered by the court for patent infringement, the subsequent production of air-conditioning products by the infringer still uses our patented technology, and the company can only sue again." Under the competitor’s knowing violation, Wen Kuangyu, director of the Intellectual Property Office of Gree Electric Appliances, Inc. of Zhuhai, chose to take a tough line, but the problems of low compensation in patent litigation and difficulty in offering evidence caused him a headache.

 

The newly-added punitive damages system in the fourth revision of the Patent Law is expected to solve the above-mentioned problems. The draft amendment to the Patent Law adjusts the amount of compensation for deliberate infringement to be not less than one time but not more than five times, and increases the statutory compensation amount from RMB 1 million to RMB 5 million, and stipulates the relevant obligation of proof for infringers.

 

In this regard, Tao Xinliang, Honorary Dean of the School of Intellectual Property, Dalian University of Technology, said: “Malicious infringements are numerous. The punitive damages system not only provides a clear legal basis for the court to judge serious malicious patent infringements and punitive damages, and it has also increased the enthusiasm of patentees to defend their rights in accordance with the law. It can be said that this measure is a “curse” to regulate intentional infringement and an “accelerator” to promote technological innovation."

 

At present, patent litigation in China follows the principle of "who advocate, who is the burden of proof ". Plaintiffs often find it difficult to provide evidences and often have insufficient power. "If this clause is implemented, it will greatly reduce the burden of proof of the patentee as the plaintiff of patent infringement cases, effectively solve the problem of the defendant's slack or false proof in patent litigation, and effectively improve the trial level and effectiveness of patent litigation cases." Tao Xinliang Said.

 

In Song Jian’s view, if the above clauses are implemented, the court can order the infringer to provide financial accounts in judicial proceedings, which will help encourage the patentee to determine the amount of compensation through calculation as much as possible; at the same time, it can also force the defendant to pay the amount of compensation. The calculation method actively defended and promoted the solution of problems such as difficulty in calculating the compensation amount.

 

Low compensation and difficulty in providing evidences... The relevant problems that we have been facing in patent litigation are expected to be solved with the fourth revision of the Patent Law. The system of punitive damages is expected to become a "tight spell" against intentional infringement and a "booster" to promote technological innovation.