China’s top court interprets rules on patent damages
11 January 2010
Peter Ollier, Hong Kong
The Supreme People’s Court has issued an Interpretation on patent trials that will change how damages are calculated and give comfort to IP owners who want to send cease and desist letters
The Court promulgated the Interpretation on December 28 last year and it came into effect on January 1 2010. Judicial interpretations are binding on lower courts.
“The Interpretation has embraced a lot of international concepts,” said Zhao Yan, of counsel at Foley & Lardner in Shanghai.
Article 16 of the Interpretation considers the way that damages are calculated. According to a translation obtained by Managing IP, it states that when a product infringing a patent is a component of another product: “the People’s Court shall reasonably determine the amount of compensation in accordance with the value of the component per se and its function in achieving the profits of the finished product”. ...
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