Mainland China
Elevating IP Standards: Strengthening Enforcement and Global Alignment in the Digital Era
Mainland China enforces IP through civil, criminal, and administrative channels under laws like the Trademark, Patent, and Copyright Law. Specialized IP Courts and Customs play key roles, with remedies including injunctions, damages, and penalties like fines or imprisonment. Administrative enforcement is efficient for clear-cut cases, while online counterfeiting remains a challenge. Mainland China is strengthening IP laws, digital enforcement, and global cooperation to improve protection and align with international standards.
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A. Legal Framework
Mainland China has a comprehensive IP protection system grounded in the principles of Civil Law, which combines administrative, civil, and criminal enforcement mechanisms.
a. Trademark
- Trademark Law: Protects word, logo, 3D, and sound marks, and contains robust provisions to address bad faith trademark filings.
- Implementing Regulations of the Trademark Law: Provide detailed procedures for registration, opposition, invalidation, and others.
- Criminal Law of China: Allows for criminal penalties against those who counterfeit registered trademarks, where the infringing goods and marks are identical to the registered ones.
Judicial Interpretations:
- Interpretation of the Supreme People’s Court (“SPC”) on Trademark Civil Disputes.
- Interpretation of the SPC on Several Issues Relating to Laws Applicable to the Trial of Civil Dispute Cases Involving Protection of Well-known Trademarks.
b. Patent
- Patent Law: Allows for the protection of inventions, utility models, and designs.
- Implementing Rules of the Patent Law: Provides detailed provisions on the procedures for patent application, enforcement, and licensing.
Judicial Interpretations:
- Interpretation of the SPC on Several Issues Concerning the Application of Law in Patent Infringement Disputes Trial (I) and (II).
- Several Provisions of the SPC on Issues Relating to the Application of Law for Patent Disputes Trials.
c. Copyright
- Copyright Law: Protects literary, artistic, and scientific works, including digital content;
- Regulations for the Implementation of the Copyright Law: Provides detailed rules to facilitate enforcement, including through registration of works and administrative remedies.
Judicial Interpretations:
Interpretation of the SPC on Copyright Civil Disputes: Provides standards for determining infringement, court jurisdiction and damages calculation.
d. New Varieties of Plants
Regulations of the People’s Republic of China on the Protection of New Varieties of Plants: Protect plant varieties that are artificially bred or derived from known wild types, provided they are novel, distinct, uniform, stable, and properly named.
Judicial Interpretations:
- Several Provisions of the SPC on Issues Concerning the Application of Law in the Trial of Cases Involving Disputes over Infringement upon the New Plant Variety Rights (I) and (II).
- Interpretation of the SPC on Several Issues Concerning the Trial of Cases Involving Disputes over New Plant Varieties.
Integrated Circuits
- Regulations for the Protection of Layout Designs of Integrated Circuits.
- Detailed Implementation Rules for the Regulations for the Protection of Layout Designs of Integrated Circuits.
Other Laws and Measures
- Criminal Law (Articles 213–218): Defines offenses and penalties for trademark, copyright and patent infringement;
- Anti-Unfair Competition Law: Covers unregistered trademarks, trade dress, trade secrets, false advertising, and other unfair competitive practices. An amendments is currently under discussion.
- Civil Code: General provisions on IP rights and tort liability;
- IP Customs Measures: Empowers customs to seize infringing imports/exports;
- E-Commerce Law: Provides remedies against online platforms that fail to properly address IP violations;
- International Treaties: Mainland China adheres to the TRIPS agreement, WIPO treaties, and bilateral agreements; and
- Interpretation of SPC and Supreme People’s Procuratorate on Several Issues Concerning the Specific Application of Law in Handling of Criminal Cases of Intellectual Property Infringement: Sets thresholds for prosecuting IP crimes, which serves as a guide for both the police and prosecutors.
B. IP Enforcement Mechanisms
a. Civil enforcement:
As one of the primary mechanisms for IP rights holders to seek compensation and injunctions, it typically begins with a cease-and-desist letter, followed by filing a lawsuit with the People’s Court. Jurisdiction depends on the IP type, dispute nature, and location of the parties or infringement (further discussed in the next section).
b. Administrative Enforcement:
This mechanism is a unique feature of Mainland China’s IP enforcement system, offering a quicker, low-cost option for clear-cut cases such as trademark counterfeiting. It is less suitable for complex disputes, especially those involving patents or copyright.
Administrative Authorities such as the Market Supervision and Administration Bureau (“MSB”) follow up on complaints through spot checks or raids, and may impose fines but cannot award damages. Although their decisions can be appealed in court, rights holders rarely do so, preferring civil litigation when dissatisfied.
c. Criminal Enforcement:
Criminal enforcement is the most effective method of law enforcement in serious IP cases. Infringers can be subject to fines and imprisonment of up to 10 years. The Public Security Bureaux (“PSB”) leads investigations and can collaborate with the MSB and Customs when necessary. Criminal enforcement in Mainland China primarily targets counterfeiters.
d. Customs Enforcement:
Rights holders can register their IP with the General Administration of Customs (“GAC”) to enable monitoring. Local Customs may then inspect, seize, investigate, destroy infringing goods, and impose fines on violations.
Mainland China enforces IP rights through a structured court hierarchy, which includes specialized IP courts and IP tribunals to improve efficiency and expertise.
Court Structure
Mainland China’s judicial system has four levels:
a. Basic People’s Courts: First-instance cases.
b. Intermediate People’s Courts: Appeals from basic courts and certain first-instance cases.
c. Higher People’s Courts: Appeals from the intermediate court and certain complex first-instance cases.
d. SPC: As the highest authority, which oversees lower courts, provides legal interpretations, and hears appeals.
Jurisdiction over First-Instance IP Cases:
a. Dispute over infringement concerning invention patents, utility model patents, new plant varieties, integrated circuit layout designs, know-how and computer software: Heard by IP courts or selected Intermediate People’s Courts.
b. Dispute over infringement concerning design patents and well-known trademarks: Handled by IP courts, or Intermediate People’s Courts, or selected Basic People’s Courts.
c. Other IP disputes (e.g., ordinary trademark cases): Typically fall under the Basic People’s Courts, unless assigned to specialized IP courts or IP tribunals.
Specialized IP Courts and Tribunals
a. SPC IP Tribunal: Handles nationwide appeals involving patents, technical secrets, and other highly technical IP cases.
Specialized IP Courts: As of 2025, there are four
b. Specialized IP courts in Mainland China: Located in Beijing, Shanghai, and Guangzhou (all were established in 2014), and Hainan Free Trade Port (established in 2020). These courts primarily focus on tech-heavy IP disputes, including patents, trade secrets and software, and well-known trademark recognition cases.
Specialized Regional IP Tribunals: Set up under local courts in major cities, and they handle a broad range of civil and criminal IP cases.
C. Remedies and Penalties
a. Injunctions (interim and permanent)
Courts may issue interim injunctions (“Act Preservation Orders”) to immediately stop infringing actions before or during litigation, especially when there is a risk of continued harm. Permanent injunctions are granted to prevent further infringement after a case is decided.
b. Damages
Under Chinese law, damages for IP infringement are designed to compensate rights holders and deter malicious infringers, including actual losses, infringer’s profits, statutory damages, and punitive damages for bad-faith acts.
Trademark Cases
Damages may be calculated based on (in order of priority):
i. Actual losses to the rights holder;
ii. Profits gained by the infringer;
iii. A reasonable multiple of the trademark licensing fee.
For serious bad-faith infringements, damages may be increased by 1–5 times.
If none of these metrics are available, courts may award statutory damages of up to RMB 5 million.
Patent Cases
Damages may be calculated based on:
i. Actual losses to the rights holder; or
ii. Profits gained by the infringer.
If it is difficult to ascertain the losses to the patentee, or the profits gained by the infringer, the compensation shall be reasonably determined as a multiple of the licensing fees of the said patent.
For serious bad-faith infringements, damages may be increased by 1–5 times.
If none of these metrics are available, courts may award statutory damages ranging from RMB30,000 to RMB 5 million.
Copyright Cases
Damages are based on actual losses or illegal gains. If unavailable, licensing fees may be used as a reference.
For serious intentional infringements, compensation can be increased by 1–5 times. If actual figures are unavailable, statutory damages range from RMB 500 to RMB 5 million, depending on the extent of the violation.
c. Public Apologies
Courts may require infringers to issue a public apology, to acknowledge wrongdoing though this remedy is rarely applied in practice; and
d. Recovery of legal costs
Clear evidence is required. Otherwise, it will not be listed separately and is generally included in the compensation.
Administrative Penalties
a. Warnings: Written notices to infringers.
b. Confiscation: Seizure of infringing goods, net proceeds from infringements, counterfeit products, and related equipment.
c. Fines: Administrative authorities (e.g., MSB and Customs) can impose fines on IP violators.
Trademark Cases
If illegal total proceeds from infringement ≥ RMB50,000, a fine of up to five times that amount may be imposed. If proceeds are below RMB50,000 or unquantifiable, a fine of up to RMB250,000 may be imposed.
Patent Cases
For patent counterfeiting, the fine can be up to five times the net proceeds from infringement. If the net proceeds from infringement are below RMB50,000 or cannot be determined, a fine of up to RMB250,000 may be imposed.
Copyright Cases
If the illegal total proceeds from infringement ≥ RMB50,000, the fine ranges from one to five times that amount. If proceeds are below RMB50,000 or unquantifiable, a fine of up to RMB250,000 may be imposed.
Criminal Penalties
Violators can face asset confiscation, fines proportionate to the infringement, and imprisonment of up to 10 years. The table below summarizes applicable scenarios:
Category | Crime Type | Details |
Trademark | Counterfeit of Registered Trademarks (Article 213 of the Criminal Law) | Serious case: up to 3 years of imprisonment, or detention + fine, or fine only if: a. total proceeds from infringement ≥ RMB50,000 or the amount of net proceeds from infringement ≥ RMB30,000; b. passing off two or more registered trademarks and total proceeds from infringement ≥ RMB30,000 or the amount of net proceeds from infringement ≥ RMB20,000; or c. other serious cases. Very serious case: 3 to 10 years of imprisonment + fine if: a. total proceeds from infringement ≥ RMB250,000 or the amount of net proceeds from infringement ≥ RMB150,000; b. passing off of two or more registered trademarks and total proceeds from infringement ≥ RMB150,000 or the amount of net proceeds from infringement ≥ RMB100,000; or c. other very serious cases. |
Sale of Commodities Bearing Counterfeited Registered Trademarks (Article 214 of the Criminal Law) | Relatively large amount: up to 3 years of imprisonment, or detention + fine, or fine only if sale turnover amount ≥ RMB50,000. Large amount: 3 up to 10 years of imprisonment + fine if sale turnover amount ≥ RMB250,000. | |
Illegally Manufacturing or Selling Illegally Manufactured Logos of Registered Trademarks (Article 215 of the Criminal Law) | Serious cases: up to 3 years of imprisonment, or detention + fine, or fine only if: a. single trademark: ≥ 20,000 pieces of forged labels, or total proceeds from infringement ≥ RMB50,000, or net proceeds from infringement RMB ≥ 30,000. b. multiple trademarks: ≥10,000 pieces of forged labels, or total proceeds from infringement ≥ RMB30,000, or net proceeds from infringement ≥ RMB20,000. c. other serious cases. very serious cases: 3-10 years of imprisonment and a fine a. single Trademark: ≥100,000 pieces of forged labels or total proceeds from infringement ≥ RMB250,000 or net proceeds from infringement is ≥RMB150,000; b. multiple trademarks: ≥ 50,000 pieces of forged labels or total proceeds from infringement ≥ RMB150,000 or net proceeds from infringement ≥ RMB100,000; or c. other very serious cases.
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Patent | Patent Counterfeiting (Article 216 of the Criminal Law) | Up to 3 years of imprisonment, or detention + fine, or fine only if: a. total proceeds from infringement ≥ RMB200,000, or net proceeds from infringement ≥ RMB100,000; b. direct losses to patentee ≥ RMB500,000; c. passing off two or more patents with total proceeds from infringement ≥ RMB100,000 or net proceeds from infringement ≥ RMB50,000; and d. other serious cases. |
Copyright | Copyright Infringement (Article 217 of the Criminal Law) | Serious cases may result in up to 3 years of imprisonment or detention, with or without a fine including: a. net proceeds from infringement ≥ RMB30,000; b. total proceeds from infringement ≥ RMB50,000; c. 1,000 copies or more are reproduced; or d. other serious cases. Very serious cases may result in 3-10 years of imprisonment with a fine, including: a. net proceeds from infringement ≥ RMB150,000; b. total proceeds from infringement ≥ RMB250,000; c. 5,000 copies or more are reproduced; or d. other very serious cases. |
Copyright | Selling Infringing Replicas (Article 218 of the Criminal Law) | sentenced to a prison or detention of up to 5 years with a fine, or a fine only if: a. net proceeds from infringement ≥ RMB100,000. |
In civil cases, enforcement is handled by the Courts. However, enforcement of IP judgments in Mainland China can be difficult, especially for foreign right holders—due to procedural and practical challenges. Courts generally require plaintiffs to identify and prove the existence of the infringer’s assets (e.g., bank accounts, real estate) before granting asset preservation rights. Penalties for non-compliance (e.g., refusal to disclose assets) are limited. In some regions, local protectionism may delay or weaken enforcement efforts against domestic infringers.
To improve enforcement outcomes, right holders should consider:
- Conducting pre-litigation investigations.
- Preserving assets and court-assisted evidence.
- Leveraging specialized courts and administrative authorities.
Administrative enforcement is typically handled by the MSB and Customs.
For criminal cases, the PSB investigates the cases, the prosecutor decides whether to prosecute, and judgements will be made by the courts.
D. Alternative Dispute Resolution
Yes, ADR mechanisms are available for civil IP cases in Mainland China.
Copyright disputes can be resolved through arbitration if there is a written arbitration agreement or an arbitration clause in the contract. For other IP disputes, including infringement and contract disputes, the general view is that they can also be arbitrated by agreement.
Mediation is widely used, often involving a neutral third-party mediator such as courts or the patent administrative department under the State Council.
Mediation places a role in the resolution of IP disputes in Mainland China, and is highly preferred by the court.
Arbitration has been increasingly and widely applied in Mainland China in recent years.
F. Emerging Challenges
With the rise of e-commerce, counterfeit goods are increasingly sold online, often assembled/labelled after orders are placed, making it challenging to catch counterfeit goods in stock. Counterfeiters exploit anonymity and forged information to operate, complicating the investigation further.
G. Future Trends
Mainland China is actively revising its IP laws to meet international standards, with recent reforms introducing stricter penalties for infringement and measures to combat violations like trademark squatting and patent trolling. The government is also promoting awareness through education and training. While progress has been made, challenges such as local protectionism, inconsistent enforcement, and legal gaps around issues such as AI remain. Continued investment in technology policy reform and global cooperation will be key to strengthening the enforcement landscape.
The Authors:
Joe Simone
Partner Co-Chairman , East IP
joesimone@east-ip.com
Joe Simone is Co-Chairman of East IP and founding partner of SIPS, now part of East IP Group. With over 36 years in IP law, Joe advises global and Asia-based companies on IP registration and enforcement. A Philadelphia native, he holds a B.A. in Chinese Studies (UPenn) and a JD (American University), with early legal research in Beijing. Before launching SIPS in 2012, Joe was a partner at a major international law firm’s China offices. He is a respected voice in global IP circles, having led initiatives for INTA and co-founded China’s Quality Brands Protection Committee, where he served as Vice Chairman and Legal Committee head.
Mia Chen
Senior Associate, East IP
miachen@east-ip.com
Mia Chen is a China-qualified attorney and patent agent with IAPP certifications (CIPP/E & CIPM), delivering integrated global IP solutions. With 10+ years across Singapore, Hong Kong, and mainland China, Mia advises multinational and listed clients on trademarks, patents, litigation, and compliance. Trusted by leading brands in retail, electronics, hospitality, and fashion, she transforms innovation into enforceable IP assets, balancing commercial strategy with regulatory clarity.
Catherine Yang
Paralegal, East IP
catherineyang@east-ip.com
Catherine Yang holds Chinese legal professional and patent agent qualification certificates. Catherine has over four years of experience in the field of intellectual property, primarily focusing on trademark prosecution, enforcement, and customs matters. She assists leading global companies in industries such as toys, film and television, automobiles, electronics, and fashion sectors.
Disclaimer: The following article is intended for general informational purposes only and should not be interpreted as legal advice by East IP (Shanghai) Limited. The viewpoints expressed herein do not represent the official legal stance of any of these firms. Consequently, the firms cannot be held accountable for any actions taken by individuals who use this article for purposes other than those for which it is intended.
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