Hostname: page-component-cd9895bd7-gxg78 Total loading time: 0 Render date: 2024-12-22T12:53:59.618Z Has data issue: false hasContentIssue false

How Fair is Patent Litigation in China? Evidence from the Beijing Courts

Published online by Cambridge University Press:  02 September 2019

Chenguo Zhang*
Affiliation:
KoGuan Law School, Shanghai Jiao Tong University, China and the Centre for European Law and Politics, University of Bremen, Germany.
Jin Cao
Affiliation:
Norges Bank, Norway and CESifo, Germany. Email: [email protected].
*
Email: [email protected] (corresponding author).

Abstract

By conducting field research and analysing judgments delivered in Beijing courts from 2004 to 2011, we find that the popular notion held by China's trade partners of the inadequacy of intellectual property protection is only partly supported by the empirical evidence. The likelihood of winning lawsuits is higher for foreign than domestic plaintiffs and the extremely low damages ruled by Chinese courts are due to particular causes. Courts lack consistent methods to calculate incurred losses in intellectual property right (IPR) infringements and consequently routinely apply the statutory damages whose upper limit is restricted by legislation. Efforts by Chinese legislators to enhance compensation by lifting the upper limit of awardable statutory damages in the Third Amendment of Chinese Patent Law (2008) did not seem to have an effect on our sample. Chinese policymakers should instead focus on the cause of the issue by providing more implementable guidelines for courts to calculate losses. Courts need to develop applicable conventions for calculating damages, based on objective criteria of how much compensation ought to be payable, which is also the basis of calculating reasonable statutory damages. Thus, the new provision of the “right of information” on pirated goods proposed by the ongoing Fourth Amendment provides a significant weapon to combat counterfeiting.

摘要

摘要

通过实地调查和数据分析 2004–2011 年北京法院的专利诉讼判决文书, 我们发现中国贸易伙伴对其知识产权保护不足的观念只能在一定程度上受到经验证据的支持。数据分析表明, 外国人赢得诉讼的可能性高于本国原告。中国法院裁定的赔偿数额极低有其特定的原因。法院缺乏统一、有效的方法来计算知识产权侵权中发生的损失, 因此惯例性地适用法定损害赔偿制度, 其额度的上限受到立法的限制。立法者在中国专利法第三修正案 (2008 年) 中通过取消法定赔偿金上限来加大赔偿力度的努力在我们的样本中并未见到成效。中国政策制定者应该为法院提供更多以客观损失(差额)为基础的、有可行性的指导方针来帮助他们解决知识产权损害赔偿计算的难题。这才是问题的主因。法院应当回归 “应付赔偿金” 的客观标准, 并逐渐发展出可以适用的一套方法来计算知识产权诉讼中的实际损失。 “实际损失” 也是合理裁量 “法定损害赔偿金” 的基础。因此, 正在进行中的专利法第四次修订提出的关于被控侵权人的 “文书提出义务” 等一揽子新规定, 为打击假冒提供了重要武器。

Type
Research Report
Copyright
Copyright © SOAS University of London, 2019

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

This paper should not be reported as representing the views of Norges Bank. The views expressed are those of the authors and do not necessarily reflect those of Norges Bank.

References

Clermont, Kevin, and Eisenberg, Theodore. 1996. “Xenophilia in American courts,” Harvard Law Review 109, 1120.CrossRefGoogle Scholar
Cohen, Mark A. 2015. “Hearing on the foreign investment climate in China: present challenges and potential for reform,” Statement before the US–China Economic and Security Review Commission.Google Scholar
EC (European Commission). 2015. “Report on EU customs enforcement of intellectual property rights: results at the EU border 2014,” https://ec.europa.eu/taxation_customs/sites/taxation/files/resources/documents/customs/customs_controls/counterfeit_piracy/statistics/2015_ipr_statistics.pdf. Accessed 27 May 2019.Google Scholar
EC. 2017. “Support study for the ex-post evaluation and ex-ante impact analysis of the IPR enforcement Directive (IPRED),” https://publications.europa.eu/en/publication-detail/-/publication/1e3b2f41-d4ba-11e7-a5b9-01aa75ed71a1. Accessed 27 May 2019.Google Scholar
EC. 2018. “Report on the protection and enforcement of intellectual property rights in third countries,” Commission staff working document, 21 February, http://trade.ec.europa.eu/doclib/docs/2018/march/tradoc_156634.pdf. Accessed 27 May 2019.Google Scholar
Ellis, Dorsey D. Jr. 1982. “Fairness and efficiency in the law of punitive damages.” Southern California Law Review 56(1), 3.Google Scholar
European Observatory on Counterfeiting and Piracy. 2017. “Damages in intellectual property rights,” http://ec.europa.eu/internal_market/iprenforcement/docs/damages_en.pdf. Accessed 4 July 2018.Google Scholar
He, Yudong, Shi, Hongyan and Shengye, Lin. 2013. “The controversy on the introduction of punitive damages in Chinese IP law.Zhi shi chan quan [Journal of Intellectual Property] 3, 5459.Google Scholar
Jiang, Ge. 2015. “The non-punitive feature of the punitive damages in copyright and patent law.” Fa xue yan jiu [Chinese Journal of Law] 80.Google Scholar
Jin, Haijun. 2015. “Statistical analysis of intellectual property rights classic cases (statistics for 166 IP cases published in the Bulletin of the People's Supreme Court of China),” http://law.cssn.cn/fx/fx_zscqfx/201511/t20151116_2595823.shtml. Accessed 27 May 2019.Google Scholar
Kur, Annette, and Dreier, Thomas. 2013. European Intellectual Property Law, Text, Cases & Materials. Cheltenham: Edward Elgar.Google Scholar
Lan, Rongjie. 2012. “Are intellectual property litigants treated fairer in China's courts? An empirical study of two sample courts,” Indiana University Research Centre for Chinese Politics and Business, RCCPB Working Paper #16, https://ssrn.com/abstract=2169373. Accessed 27 May 2019.Google Scholar
Machina, Lex. 2014. “Patent litigation damages report,” https://lexmachina.com/media/press/lex-machina-releases-first-ever-patent-litigation-damages-report/. Accessed 27 May 2019.Google Scholar
Li, Luo. 2014. “On the introduction and application of exemplary damages to intellectual property law.Fa xue [Law Science] 4, 30.Google Scholar
McMichael, Benjamin 2013. “Constitutional limitations on punitive damages: ambiguous effects and inconsistent justifications.Vanderbilt Law Review 961, 1003.Google Scholar
Moore, Kimberly A. 2003. “Xenophobia in American courts.Northwestern University Law Review, 97, 1497.Google Scholar
Owen, David G. 1989. “The Moral Foundations of Punitive Damages.Alabama Law Review 40(3), 705.Google Scholar
Pejovic, Caslav. 2001. “Civil law and common law: two different paths leading to the same goal.Victoria University of Wellington Law Review 32, 817.CrossRefGoogle Scholar
PwC (PricewaterhouseCoopers). 2017. “Patent litigation study: change on the horizon?” http://www.ipwatchdog.com/wp-content/uploads/2017/05/2017-Patent-Litigation-Study_PwC.pdf. Accessed 29 May 2019.Google Scholar
Sepetys, Kristina, and Cox, Alan. 2009. “Intellectual property rights protection in China: trends in litigation and economic damages.” NERA Consulting.Google Scholar
Sommers, Roseanna. 2015. “The psychology of punishment and the puzzle of why tortfeasor death defeats liability for punitive damages.Yale Law Journal, 1295.Google Scholar
USTR (Office of the United States Trade Representative). 2006. “2006 Special 301 Report,” https://ustr.gov/archive/assets/Document_Library/Reports_Publications/2006/2006_Special_301_Review/asset_upload_file473_9336.pdf. Accessed 27 May 2019.Google Scholar
USTR. 2013. “2013 Special 301 Report,” https://ustr.gov/sites/default/files/05012013%202013%20Special%20301%20Report.pdf. Accessed 27 May 2019.Google Scholar
Wan, Yong. 2014. “Copyright damages in China.” Journal of the Copyright Society of the USA, 61(3).Google Scholar
Wechsler, Andreas. 2009. “People's Republic of China – enactment of the Third Chinese Patent Law Reform through the National People's Congress.” GRUR International, 275.Google Scholar
Wen, Shiyang, and Qiu, Yongqing. 2004. “Punitive damages and intellectual property rights.Fa lü shi yong [National Judges CLJ] 12, 50.Google Scholar
WTO (World Trade Organization). 2009. “Panel report: China – measures affecting the protection and enforcement of intellectual property rights, WT/DS362/R, 7.476,” https://www.wto.org/english/tratop_e/dispu_e/362r_c_e.pdf. Accessed 27 May 2019.Google Scholar
Yang, Ming-Tao, and Yamanouchi, Masayuki. 2014. “Increased damages for patent infringement in Japan,” 24 February, https://www.finnegan.com/en/insights/increased-damages-for-patent-infringement-in-japan.html. Accessed 27 May 2019.Google Scholar
Yu, Peter K. 2011. “TRIPS enforcement and developing countries.American University International Law Review 26, 727.Google Scholar
Yu, Yi. 2008. “On the establishment of liability for compensation about exemplary damages and the amount definition.Fa xue za zhi [Jurisprudence Magazine] 1, 143.Google Scholar
Zhang, Chenguo. 2017. “Enhancing the standards of civil damages remedies to fight copyright piracy in international trade?Journal of World Trade 51, 131158.Google Scholar