The Draft of Trademark Law Amendment was first submitted to NPC Standing Committee for consideration on December 24. The Draft adds punitive compensation rules and increases the amount of compensation for infringement. It provides “the amount of compensation for the infringement of rights to exclusive use of a trademark is based on the actual losses suffered by right holders or the profits obtained by infringers, or based on the licensing fees of the registered trademark. For malicious infringement of rights to exclusive use of a trademark in serious cases, the compensation can be not less than one time and not more than three times the above fixed amount. To make clear the compensation amount, the people’s courts can order infringers to provide infringement-related account books and relevant materials in case right holders have born burden of proof but infringement-related account books and materials are mainly held by infringers. If infringers refuse to provide account books and materials or provide false account books and materials, the people’s courts can fix compensation amount according to the claims of right holders and the proof provided.”

The Draft also provides “providing the above mentioned actual losses suffered by right holders, the profits obtained by infringers or the licensing fees of registered trademarks are difficult to be fixed, the people’s courts can determine a compensation of no more than 1 million yuan according to the material circumstances of the case.”