Determining the timespan of damages in trademark infringement litigation in China

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Determining the timespan of damages in trademark infringement litigation in China

Sponsored by

lifang-400px.png
fly-d-hxqyqs2f3j0-unsplash.jpg

Yan Zhang and Lin Mu of Lifang & Partners discuss a Supreme People’s Court case that establishes the timeframe for damages awarded to trademark owners

In pursuant to Article 18 of Interpretation of Supreme People's Court (SPC) on ‘Several issues concerning the application of law in the hearing of civil cases involving trademark disputes’, the limitation for instituting trademark infringement is three years, commencing from the date when trademark owners know or should have known the infringement.

Where the lawsuit was brought after three years, and if the infringement is still continuing, the amount of damages for the infringement shall be calculated by counting back three years from the date when the trademark owner brought the lawsuit to the court.

This rule has established the basic principle of the timespan of damages calculated. However, the court may still award damages calculated for more than three years.

Chongqing People’s High Court issued a final judgment, i.e. (2021) Yu Minzhong No. 166 (2021渝民终166号), which confirmed trademark infringement of the defendant, and ordered the defendant to pay damages of RMB 10 million ($1.5 million) calculated back from 2005, until the filing date of the lawsuit, i.e. October 8 2018.

This lawsuit was filed by Chongqing Pigeon Brand Wire and Cable Limited (Pigeon Brand), against Chongqing Pigeon Emperor Wire and Cable Group Limited (Pigeon Emperor) and a distributor of the first defendant, for trademark infringement and unfair competition, requesting Pigeon Emperor to stop producing, selling and promoting the wire and cable bearing infringing mark “鸽皇(Pigeon Emperor)”, and change the tradename of Pigeon Emperor without inclusion of  “鸽皇(Pigeon Emperor)” or “鸽牌(Pigeon Brand)”.

The main reason for such an unusual judgment is that while the plaintiff registered the trademark “鸽牌(Pigeon Brand)” in class 9 in 1981, the legal representative of the defendant also registered a similar trademark “鸽皇(Pigeon Emperor)” in the same class in 2005, and licensed the defendant to use the trademark, which was finally invalidated by the plaintiff until May 2018.

In pursuant to another judicial interpretation of SPC, no trademark infringement lawsuit could be brought against acts using a registered trademark, before the trademark was invalidated or cancelled.

The court therefore rejected the argument of the defendant that the lawsuit was brought after the time limit expiry of the lawsuit, as the plaintiff would have known the infringement acts before 2013, as the court held that the infringement acts continued until 2018, and the time limit did not expire.

The court further rejected the defendant’s argument for exclusion of calculation of damages from 2005–2018, as the defendant has been using the valid trademark. The court held that as the trademark “鸽皇(Pigeon Emperor)” was invalidated, and the trademark was void from the beginning, the defendant shall undertake liability during the interim. In addition, the court held that the defendant conducted infringing acts maliciously, since the date of its establishment. As a result, the court held that the calculation of damages shall be based on the profits of the defendant infringing acts during 2005–2018.

 

In conclusion, from this judgment, the court could award damages calculated more than three years back from the filing date, but from the start of infringing acts, based on the following conditions:

  • The plaintiff could not file a lawsuit earlier due to the defendant used registered trademarks;

  • The plaintiff successfully invalidated the registered trademarks used by the defendant;

  • The plaintiff filed trademark infringement lawsuit within three years after invalidation of the above registered trademarks;

  • The defendant used the above registered trademark maliciously to imitate the plaintiff’s trademark or tradename.

 

The trademark owners should bear in mind, that if the above conditions are met, the court could award high damages based on a longer timespan, and may even apply punitive damages against the defendant, the plaintiff could obtain more compensation than ordinary cases.

 

Yan Zhang

Partner, Lifang & Partners

E: yanzhang@lifanglaw.com

 

Lin Mu

Senior attorney-at-law, Lifang & Partners

E: linmu@lifanglaw.com

more from across site and SHARED ros bottom lb

More from across our site

A new claim filed by Ericsson, and a request for access to documents, were also among recent developments
Cooley and Stikeman Elliott advised 35Pharma on the deal, which will allow GSK to get its hands on S235, an investigational medicine for pulmonary hypertension
Simon Wright explains why the UK should embrace the possibility of rejoining the UPC, and reveals how CIPA is reacting to this month’s historic Emotional Perception AI case at the UK Supreme Court
Matthew Grady of Wolf Greenfield says AI presents an opportunity in patent practice for stronger collaboration between in-house and outside counsel
Aparna Watal, head of trademarks at Halfords IP, discusses why lawyers must take a stand when advising clients and how she balances work, motherhood and mentoring
Discussion hosted by Bird & Bird partners also hears that UK courts’ desire to determine FRAND rates could see the jurisdiction penalised in a similar way to China
The platform’s proactive intellectual property enforcement helps brands spot and kill fakes, so they can focus on growth. Managing IP learns more about the programme
Hire of José María del Valle Escalante to lead the firm’s operations in ‘dynamic’ Catalonia and Aragon regions follows last month’s appointment of a new chief information officer
The London elite have dominated IP litigation wins for the past 10 years, but a recent bombshell AI case could change all that
Two New Hampshire IP boutiques will soon merge to form Secant IP, seeking to scale patent strength while keeping a lean cost model
Gift this article