China's top court interprets rules on patent damages
01 February 2010
The Supreme People's Court issues its latest IP Interpretation
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. It is the last of a series of interpretations and opinions on IP issued by the Court in 2009 (see box).
"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...
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