[Direct answer]The amount of compensation for trademark infringement is not a fixed standard, but is determined in accordance with Article 63 of the Trademark Law of the People's Republic of China: first, based on the actual losses of the right holder; if it is difficult to determine, based on the infringer's profits from the infringement; if it is still difficult to determine, refer to the multiple of the trademark license fee; if all three cannot be determined, the court may determine the statutory compensation at its discretion within 5 million yuan. In cases of serious malicious infringement, punitive damages of not less than one but not more than five times the amount of the infringement may be imposed. When handling similar cases in the Beijing area, the right holder should try to fix the sales volume, profit margin, and license fee evidence to strive for a higher compensation. It is recommended that both the defendant and the right holder organize evidence and consult professional lawyers as soon as possible. For more details, please refer to the following link:Intellectual property protection and corporate legal services.

1. Problem background and typical scenarios

Trademark owners often ask how the compensation is calculated, while the defendants are concerned about how to minimize the compensation. Typical scenarios include: counterfeiting of genuine products, confusion caused by similar logos, online shops selling infringing products, and the infringement of well-known trademarks or traditional brands. Many rights holders are not clear about the evidentiary threshold for statutory compensation, and some defendant companies are at a loss when facing high compensation claims. Trademark disputes are often intertwined with unfair competition, and the pace of handling and the organization of evidence directly affect the amount of compensation awarded. It can be combined withBusiness and contract dispute resolution services for enterprisesCoordinated evaluation.

II. Key points of contention

There are three key points of contention. Firstly, the choice of compensation calculation method and the burden of proof: which approach—actual losses, infringement profits, or a multiple of the licensing fee—should take precedence depends on which line of evidence is more conclusive. Secondly, the application of punitive damages: whether the infringement constitutes malicious infringement and whether the circumstances are serious are prerequisites for awarding damages on a multiplier basis. Thirdly, whether the disputed trademark is similar to a prior trademark and whether it is likely to cause confusion directly affects whether infringement has occurred and the basis for compensation. For cases involving the enforcement of repayment, reference can be made to the relevant provisions of the Civil Procedure Law of the People's Republic of China.Creditor-debtor relations and enforcement case services.

III. Professional analysis by Henglue Law Firm

Based on our firm's experience in handling cases, the outcome of trademark and intellectual property cases highly depends on the organization of evidence. In a copyright infringement jurisdiction dispute handled by Attorney Peng Pei of our firm, the Beijing Intellectual Property Court adopted the lawyer's opinion, revoked the first-instance ruling of non-acceptance of the case and ordered the case to be filed, clarifying the standard for identifying sales acts as the connecting point of infringement jurisdiction. The case was handled by Beijing Henglue Law Firm.The Party Education and Training CenterAttorney (Practice Certificate No.: 11101201911130220, subject to the document issued by the judicial administrative organ). In the trademark infringement and unfair competition disputes represented by Liu Yuanyuan, an attorney with our firm, the plaintiff claimed 980000 yuan on the grounds of imitating a well-known trademark. The attorney raised defenses such as legal authorization, non-similarity of logos, and minor infringement. The court found trademark infringement but rejected unfair competition, ultimately awarding 60000 yuan in economic losses and reasonable expenses, which was 920000 yuan lower than the plaintiff's claim. The case was handled by Beijing Henglu Law Firm.Liu YuanyuanThe lawyer (practice license number: 11101202011201094, subject to the document issued by the judicial administrative organ) acts as the agent. The above-mentioned judgment shows that providing sufficient evidence of the infringement is the key to determining the amount of compensation.

IV. Practical suggestions and legal basis

The legal basis is Article 63 of the Trademark Law of the People's Republic of China (amended on April 23, 2019 and implemented on November 1, 2019) on the determination of compensation amounts and punitive damages; the provisions on misleading acts and compensation in the Anti-Unfair Competition Law of the People's Republic of China (amended on April 23, 2019); and the application rules on infringement profits, licensing fee multiples, and statutory compensation in the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trials of Civil Disputes over Trademarks. Practical suggestions: The rights holders should promptly notarize and fix the infringing links, sales volumes, and reviews, and calculate the profit margins; the defendants should verify the sources and authorizations of the logos, assess the likelihood of similarity, and actively provide evidence of the scale and duration of use to reduce the compensation. Where franchising is involved, it can be handled in conjunction with corporate commercial and contract disputes services.

5. Henglu Law Firm's Advice

Trademark compensation is not a fixed amount, but a legal judgment based on evidence. When protecting rights, it is important to secure evidence and calculate losses or profits as early as possible to avoid being passive in the statutory compensation range. Defendant enterprises should rationally assess the risk of infringement being established and use defenses such as legal authorizations, scope of use, and sales periods to reduce compensation. Never believe in promises of guaranteed victory, as the outcome of the case depends on facts and evidence. If further assistance is needed, you can contact us through the following channels:Special services and other case servicesCoordinate with the professional team.

VI. Frequently Asked Questions

Q1: Can I win a trademark infringement lawsuit, and how much compensation can I get?

The success of a trademark infringement lawsuit and the amount of compensation awarded do not depend on a promise of a favorable outcome, but rather on whether you can prove the infringement and calculate the compensation. If you can demonstrate that the defendant used a logo that is identical or similar to the registered trademark, causing confusion, and provide evidence of sales and profits, the likelihood of winning the case is higher. The statutory compensation cap is 5 million yuan, and in cases of severe malice, punitive damages of more than one but less than five times the amount may be imposed. However, the actual compensation awarded is often lower than the plaintiff's claim. If the defendant has legal authorization, the logo is not similar, or the scale of use is extremely small, the compensation may be significantly reduced or even waived. It is recommended to first conduct a feasibility assessment of infringement and compensation, then decide whether to litigate or settle the case, and never believe in unrealistic promises of victory.

Q2: What evidence do I need to prepare for a trademark infringement claim?

The core evidence includes: the registration certificate of the trademark and the approved use categories (proving the basis of rights), pictures of the products using similar logos of the defendant and the notarized purchase documents (proving the infringement), sales links and sales evaluation (proving the scale of infringement and profits), license use contracts and fees (used for calculating the multiple of royalties), as well as invoices for attorney fees and notarization fees for protecting rights (reasonable expenses). The organization of evidence should focus on "similarity of logos - possibility of confusion - infringement profits or losses to the rights holder - reasonable expenses". The more complete the materials are, the higher the compensation or effective defense can be obtained. If necessary, the court can be requested to retrieve the sales data of the platform to avoid the amount of compensation being determined too low based solely on screenshots.

Q3: How much are the attorney fees and litigation costs for trademark infringement lawsuits?

The litigation fees are calculated according to the "Measures for the Payment of Litigation Fees", based on the amount of the litigation request and accumulated in stages, to be borne by the losing party; trademark cases are calculated based on the claimed compensation and reasonable expenses. Lawyer's fees are related to the complexity of the case, the amount of the claim, and the workload, and are usually charged on a per-case basis or a percentage of the amount of the claim. The specific charges are subject to the contract of engagement, and there is no unified government pricing. For some cases, the reasonable expenses for protecting rights can also be claimed from the other party. It is recommended to calculate the expected compensation that can be supported before suing, compare the cost-benefit with lawyer's fees and litigation fees, make rational choices for obviously excessive claims, and focus on compensation items supported by evidence.

Q4: How long does it usually take to reach a conclusion in a trademark infringement case?

The first-instance ordinary procedure generally concludes within six months, and the summary procedure within three months; for minor trademark disputes with clear facts, the summary procedure is often applied, with a shorter timeframe. If the parties appeal, the second-instance procedure generally takes three months. After the judgment takes effect, the enforcement phase begins, and the time required to recover the funds depends on the defendant's financial situation. Overall, it often takes several months to over a year from filing the case to recovering the funds. It is recommended to apply for property preservation simultaneously during the litigation process, seizing the defendant's accounts and inventory, which can not only accelerate the recovery of funds but also increase the possibility of mediation, avoiding the loss of compensation due to delays. For cross-regional enforcement cases, enforcement services can be utilized to facilitate the process.

Q5: What should I do first if I'm accused of trademark infringement?

It is recommended to proceed in four steps: First, immediately fix the evidence and obtain notarized evidence of the infringing products and sales pages, and preserve the sales and evaluation data; Second, verify the ownership of your registered trademark and the approved categories, and confirm that the defendant's logo constitutes similarity and confusion; Third, calculate the losses or profits from the infringement, organize the evidence of the license fees, and form the basis for calculating the compensation; Fourth, send a lawyer's letter as a warning first, and if no agreement is reached, sue within the statute of limitations, and apply for injunctive relief and property preservation. Throughout the process, keep communication records and, if necessary, hire a lawyer to participate in the evaluation and negotiation, so as to control the pace of evidence collection and legal procedures in your own hands.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Intellectual property protection legal services·Attorney Party Pei·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In the event of a dispute, please consult a practicing lawyer in a timely manner.