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determination of compensation for damages in civil The American Chamber of Commerce in South China
matters of intellectual property infringement, RCEP
orders the infringer to pay the rightsholder’s damages 23
“because of an infringement of that person’s intellec-
tual property rights by the infringer”. In other words,
RCEP follows the “principle of equivalence”, namely,
the owed payment to be paid by the infringer shall
not exceed the amount of damages caused to the rights
holder, but no punitive damages are recoverable. The
judicial authorities shall consider, among other things,
any legitimate measure of value the right holder sub-
mits, or order the infringer who knowingly, or with
reasonable grounds to know, engaged in infringing
activity to pay the rightsholders the infringer’s profits
that are attributable to the infringement.24 Compen-
sations include the reasonable fees for protection of
rights, such as court costs and reasonable attorney’s
fees. However, CPTPP, Article 18.74 provides the
system of “additional damages”, which, despite the
standard of paying less compensation than the “three-
times compensation” in the American draft, still ex-
ceeds the compensation based on the “principle of
equivalence”, and sets up a framework for the “rules of
punitive damages”. The ETA, however, requires China
to impose severe penalties close to or reaching maxi-
mum statutory levels, in order to prevent potential in-
tellectual property infringement.
RCEP requires that criminal procedures and penalties
shall be at a minimum applied to cases of intentional
copyright or related copyright or trademark infringe-
ment on a commercial scale. If any unauthorized
commercial reproduction of cinema film in a cinema,
causes significant harm to rightsholders of the work in
the market, measures should be taken or maintained,
including as a minimum prosecution and criminal pen-
alties. Criminal penalties include fixed-term imprison-
ment and fines equivalent to deterrence of crimes with
the same severity, both which are not required to be
used at the same time.
The CPTPP and ETA requires that criminal rem-
edies apply to all types of intellectual property dis-
putes and that the administrative departments shall
transfer cases with “reasonable suspicion” to criminal
enforcement department25.
24 RCEP Chapter 11, Section J, Article 60
25 ETA Chapter 1, Section H, Article 1.26
matters of intellectual property infringement, RCEP
orders the infringer to pay the rightsholder’s damages 23
“because of an infringement of that person’s intellec-
tual property rights by the infringer”. In other words,
RCEP follows the “principle of equivalence”, namely,
the owed payment to be paid by the infringer shall
not exceed the amount of damages caused to the rights
holder, but no punitive damages are recoverable. The
judicial authorities shall consider, among other things,
any legitimate measure of value the right holder sub-
mits, or order the infringer who knowingly, or with
reasonable grounds to know, engaged in infringing
activity to pay the rightsholders the infringer’s profits
that are attributable to the infringement.24 Compen-
sations include the reasonable fees for protection of
rights, such as court costs and reasonable attorney’s
fees. However, CPTPP, Article 18.74 provides the
system of “additional damages”, which, despite the
standard of paying less compensation than the “three-
times compensation” in the American draft, still ex-
ceeds the compensation based on the “principle of
equivalence”, and sets up a framework for the “rules of
punitive damages”. The ETA, however, requires China
to impose severe penalties close to or reaching maxi-
mum statutory levels, in order to prevent potential in-
tellectual property infringement.
RCEP requires that criminal procedures and penalties
shall be at a minimum applied to cases of intentional
copyright or related copyright or trademark infringe-
ment on a commercial scale. If any unauthorized
commercial reproduction of cinema film in a cinema,
causes significant harm to rightsholders of the work in
the market, measures should be taken or maintained,
including as a minimum prosecution and criminal pen-
alties. Criminal penalties include fixed-term imprison-
ment and fines equivalent to deterrence of crimes with
the same severity, both which are not required to be
used at the same time.
The CPTPP and ETA requires that criminal rem-
edies apply to all types of intellectual property dis-
putes and that the administrative departments shall
transfer cases with “reasonable suspicion” to criminal
enforcement department25.
24 RCEP Chapter 11, Section J, Article 60
25 ETA Chapter 1, Section H, Article 1.26
