Overview

China provides a comprehensive framework of remedies for intellectual property (IP) infringement, encompassing civil litigation, administrative enforcement, and criminal prosecution avenues. Since the major amendments to China’s patent, trademark, and copyright laws between 2019 and 2021, remedies have been significantly strengthened — including dramatically increased statutory damages caps, punitive damages for willful infringement, and improved procedures for evidence preservation and asset freezing. For foreign IP rights holders operating in China, understanding the full spectrum of available remedies and how to pursue them effectively is essential for protecting valuable intangible assets. This FAQ examines each category of remedy and provides strategic guidance for rights enforcement in the Chinese legal environment as of 2026.

Civil Remedies (Primary Enforcement Channel)

Civil litigation is the most commonly pursued enforcement channel for IP infringement in China, accounting for over 85% of all IP enforcement actions. The PRC Civil Procedure Law (2021 amendment) and specialized IP laws provide rights holders with a powerful arsenal of civil remedies.

1. Injunctions (Preliminary and Permanent)

Preliminary injunctions (临时禁令) — Article 72 of the PRC Civil Procedure Law allows rights holders to apply for a preliminary injunction before or during litigation. The threshold requires the applicant to demonstrate: (a) a valid IP right that is likely infringed; (b) irreparable harm if the injunction is not granted; (c) a balance of hardships favoring the applicant; and (d) the provision of security (typically 10–30% of the claim amount). In patent cases, preliminary injunctions have become more accessible since the SPC revised the standards in its 2020 Judicial Interpretation. The time to obtain an order is typically 7–21 days.

Permanent injunctions — upon proving infringement at trial, the rights holder is entitled to a permanent injunction ordering the infringer to cease the infringing activities. Courts grant permanent injunctions in the vast majority of successful infringement cases, though in rare circumstances involving public interest, the court may order ongoing royalties instead (a practice more common in patent cases involving essential drugs or public utilities).

2. Damages

Chinese IP law provides several methods for calculating damages, with the court applying them in the following order of priority:

Actual Loss (首选)

The rights holder’s actual losses caused by the infringement, calculated as the reduced sales volume of the IP owner’s products multiplied by the profit per unit. If the reduced sales volume is difficult to determine, courts may calculate based on the infringer’s sales volume multiplied by the profit per unit of the IP owner’s products. The Patent Law (Article 71) and Trademark Law (Article 63) both prioritize actual loss as the primary measure.

Infringer’s Profits

Where actual losses are difficult to prove, the rights holder may claim the infringer’s profits attributable to the infringement. The burden of proof shifts partially: the rights holder must establish the infringer’s gross sales, while the infringer must prove its deductible costs and expenses. In a landmark 2022 case, the Supreme People’s Court ordered an infringer to disgorge profits of RMB 150 million in a trade secret misappropriation case involving advanced manufacturing technology.

Statutory Damages

When neither actual losses nor infringer’s profits can be reasonably determined, courts award statutory damages within the following limits:

• Patent infringement — up to RMB 5 million (Patent Law, Article 71)
• Trademark infringement — up to RMB 5 million (Trademark Law, Article 63)
• Copyright infringement — up to RMB 5 million (Copyright Law, Article 54)
• Trade secret misappropriation — up to RMB 5 million (Anti-Unfair Competition Law, Article 17)

Statutory damages are most commonly awarded in practice (approximately 70% of IP cases), with average awards typically ranging from RMB 50,000 to RMB 500,000. Courts consider the type, duration, and scope of infringement, the infringer’s intent, and the rights holder’s licensing history when determining the amount.

Punitive Damages (惩罚性赔偿)

Introduced in the 2019–2021 law revisions and significantly expanded since, punitive damages of up to five times the calculated damages are available for willful (intentional) infringement. The conditions for punitive damages are:

• The infringement must be willful — the infringer knew or should have known of the IP right (e.g., after receiving a cease-and-desist letter, after a prior court ruling, or after copying a registered design)
• The infringement must be serious — involving large-scale manufacturing, cross-border distribution, or repeated infringement after administrative penalties
• The rights holder must specifically request punitive damages in the complaint — courts will not award them sua sponte

The first punitive damages award under the revised Patent Law was granted in 2021 in a case involving automotive parts, where the court applied 2× multiplier on calculated damages of RMB 2.1 million, resulting in a total award of RMB 4.2 million. In 2023, a Beijing court applied the maximum 5× multiplier in a trademark infringement case involving luxury goods counterfeiting. As of 2025, Chinese courts have awarded punitive damages in over 200 cases, with an average multiplier of approximately 2.8×.

3. Reasonable Litigation Costs

Successful rights holders may recover reasonable expenses incurred in enforcing their IP rights, including attorney fees (typically calculated at 10–15% of the amount in controversy), notarization and evidence preservation costs, translation fees, and expert witness fees. The SPC’s 2021 guidance encourages courts to fully compensate rights holders for enforcement costs to reduce barriers to IP protection.

4. Evidence and Asset Preservation Orders

Chinese courts offer powerful procedural remedies to preserve evidence and prevent asset dissipation:

• Evidence preservation (证据保全) — the court may seal, photograph, or seize infringing products and related documents before or during litigation. Applications typically require some prima facie evidence of infringement. Courts process these applications within 48 hours in urgent cases.
• Asset preservation (财产保全) — the court may freeze the defendant’s bank accounts or seize other assets up to the amount of the claim. The applicant must provide security (typically 30% of the preservation amount, or 10% for IP cases under certain court practices). This remedy is particularly important for ensuring that damages can be collected if the rights holder prevails.
• Bond preservation (行为保全) — a specialized form of preservation order that restrains specified conduct (e.g., ordering an e-commerce platform to remove infringing product listings). This has become increasingly common in cases involving Alibaba’s Taobao/Tmall platforms and JD.com.

Administrative Remedies (Fast and Cost-Effective)

China’s administrative IP enforcement system provides a faster and less expensive alternative to civil litigation for certain types of infringement:

1. Local Market Regulation Bureau (AMR) Complaints

The local Administration for Market Regulation (AMR) has authority to investigate and penalize trademark infringement, patent infringement (for utility models and designs), and unfair competition. The process involves:

• Filing a complaint with the AMR in the jurisdiction where infringement occurs
• On-site inspection — AMR officials conduct unannounced inspections of the suspected infringer’s premises
• Seizure of infringing goods — AMR can issue seizure orders and impound evidence
• Administrative penalty — fines up to RMB 250,000 for trademark infringement (Trademark Law, Article 60) and up to 5× the illegal turnover in patent passing-off cases
• Mediation of damages — the AMR may facilitate a mediation agreement for compensation, but cannot award damages; rights holders must seek damages through separate civil proceedings or through settlement

Timeline: Administrative actions are typically resolved within 3–6 months, significantly faster than civil litigation.

2. Customs Seizures (Border Enforcement)

China Customs provides one of the most effective enforcement mechanisms, particularly for imported or exported infringing goods:

• Recordal — rights holders should record their patents, trademarks, and copyrights with the China General Administration of Customs (GAC). Recordal is valid for 10 years and can be renewed. As of 2025, over 60,000 IP rights are recorded with GAC.
• Ex officio seizure — Customs may proactively detain goods suspected of infringing a recorded IP right and notify the rights holder within 3 working days
• Application-based seizure — rights holders who have not recorded their rights may still apply for seizure upon discovering suspicious shipments, providing security of the estimated value of the goods
• Disposal — if confirmed as infringing, Customs may destroy the goods, auction them (with IP removed), or release them with the rights holder’s consent

In 2024, China Customs seized over 50 million infringing items with a total value exceeding RMB 1.5 billion. The most commonly seized goods included consumer electronics, apparel, footwear, and automotive parts.

Criminal Remedies (For Serious Infringement)

Criminal prosecution is available for IP infringement that exceeds certain thresholds. The PRC Criminal Law (Amendment XI, effective 2021) significantly strengthened criminal penalties for IP crimes.

Criminal Thresholds

• Trademark counterfeiting — illegal business volume exceeding RMB 50,000 or profit exceeding RMB 30,000
• Patent counterfeiting — illegal business volume exceeding RMB 200,000
• Copyright piracy — illegal business volume exceeding RMB 50,000 or profit exceeding RMB 30,000, or distribution of 500+ copies
• Trade secret misappropriation — causing losses exceeding RMB 300,000 to the rights holder

Criminal Penalties

• Basic level — up to 3 years imprisonment and/or a fine
• Aggravated level — 3–10 years imprisonment and a fine for especially serious circumstances (e.g., business volume exceeding RMB 250,000 for trademarks, or RMB 750,000 for trade secrets)
• Fines — courts may impose fines of up to 5× the illegal business volume

Criminal procedure: Rights holders typically file a criminal complaint with the public security bureau (PSB) where the infringement occurs, supported by evidence of infringement and the amount exceeding the criminal threshold. The PSB conducts a criminal investigation, and the procuratorate brings charges if sufficient evidence exists. The rights holder may also file a private prosecution if the PSB declines to investigate. Criminal cases involving IP generally take 8–18 months from complaint to judgment.

Enforcement Strategies by IP Type

Patent Enforcement

• Invention patents — civil litigation is the primary channel due to the complexity of validity and infringement analysis. The newly established National Intellectual Property Administration (CNIPA) Patent Validity Review and local IP courts provide specialized patent expertise.
• Utility models and designs — administrative enforcement through AMR or CNIPA is more common due to the simpler infringement analysis. CNIPA’s patent infringement adjudication process (专利侵权纠纷行政裁决) is designed to resolve cases within 4 months.

Trademark Enforcement

• Administrative complaints to AMR are effective for counterfeit goods, particularly in physical markets and wholesale channels
• Civil litigation with punitive damages is recommended for systematic infringement by established companies
• Customs recordal is essential for preventing import/export of counterfeit goods
• Online platform takedown notices under the E-Commerce Law (Article 42) are effective for marketplace listings on Taobao, Tmall, JD.com, Pinduoduo, and Douyin

Copyright Enforcement

• Civil litigation with statutory damages is the standard approach
• Criminal prosecution is pursued for large-scale piracy operations
• The National Copyright Administration (NCAC) provides administrative enforcement for software and audiovisual works
• Online copyright infringement can be addressed through takedown notices under the Regulations on the Protection of Information Network Transmission Rights

Trade Secret Enforcement

• Civil litigation with a strong focus on preliminary injunctions and preservation orders (since trade secrets, once disclosed, cannot be undisclosed)
• Criminal prosecution is increasingly common since the 2021 amendment lowered the criminal threshold and increased penalties
• Requires the rights holder to demonstrate reasonable protective measures were in place (the “confidentiality measures” requirement under Article 9 of the Anti-Unfair Competition Law)

Practical Recommendations for Foreign IP Rights Holders

1. Register your IP rights in China proactively — China operates a first-to-file system. Without registered IP rights in China, you have no basis for enforcement against infringement in the Chinese market. Register patents, trademarks, and copyrights before entering the market.
2. Record your IP rights with China Customs — this enables proactive interception of infringing goods at borders, which is often the first line of defense against imports of counterfeits.
3. Build a documented evidence chain — maintain notarized records of infringement (including purchase of sample products, screen captures, and on-site photographs from the infringer’s premises). Notarization (公证) by a Chinese notary public is the gold standard for trial evidence.
4. Consider administrative enforcement first for clear-cut cases — for straightforward counterfeiting or trademark infringement, an AMR complaint can achieve cessation of infringement in 3–6 months at a fraction of the cost of litigation.
5. Apply for punitive damages in all appropriate cases — document the infringer’s willful conduct (cease-and-desist letters, prior warnings, repeat infringement) and specifically plead punitive damages with a requested multiplier to maximize recovery.
6. Use preservation orders strategically — apply for evidence preservation early to prevent spoliation and asset preservation to prevent asset flight. These applications are strongest when accompanied by specific, verified evidence of infringement.
7. Engage specialized IP counsel — IP enforcement in China is highly specialized. Lawyers with experience before the IP court in your industry and jurisdiction can significantly improve outcomes at every stage of enforcement.

Key Takeaways

• China offers three enforcement channels — civil (injunction + damages), administrative (fast cease-and-desist + fines), and criminal (imprisonment + fines) — which can be pursued individually or in combination
• Damages remedies include actual loss, infringer’s profits, statutory damages (up to RMB 5 million), and punitive damages (up to 5× calculated damages for willful infringement)
• Pre-litigation preservation orders (evidence, asset, and bond preservation) are powerful tools available from Chinese courts
• Administrative enforcement through AMR and Customs provides faster, lower-cost options for clear-cut infringement cases
• Criminal prosecution is available for serious infringement above statutory thresholds and carries penalties of up to 10 years imprisonment
• Registration of IP rights in China is mandatory — China is a first-to-file jurisdiction, and unregistered rights provide no basis for enforcement
• Punitive damages are increasingly available and courts are applying higher multipliers (average ~2.8× as of 2025), making IP enforcement more financially viable for rights holders

Related Topics

• CG360-IP: Intellectual Property Protection in China
• CG360-PATENTS: Patent Registration and Enforcement in China
• CG360-TRADEMARK-ENFORCEMENT: Trademark Protection Strategies
• CG360-TRADE-SECRETS: Trade Secret Protection in China
• How to register a patent in China: 2026 Guide