[Direct answer]After a patent is infringed, the amount of compensation shall be determined in accordance with Article 71 of the Patent Law of the People's Republic of China (effective June 1, 2021), and shall be calculated in the following order: First, the actual losses suffered by the right holder due to the infringement; Second, if the actual losses are difficult to determine, the infringer's profits obtained from the infringement shall be determined; Third, if both the losses and profits are difficult to determine, the compensation shall be reasonably determined based on a multiple of the license fee for the patent; Fourth, if all of the above are difficult to determine, the court shall determine the statutory compensation at its discretion, the amount of which shall be no less than 10,000 yuan and no more than 5 million yuan. For intentional infringement with serious circumstances, the compensation may be determined at no less than one time but no more than five times the amount determined in the aforementioned manner. The right holder may also claim reasonable expenses (such as attorney's fees and investigation and evidence collection fees) incurred to stop the infringement. For specific evidence and calculation paths, please refer to the details provided below.Intellectual property protection and corporate legal servicesAndBeijing Henglue Law Firm.

1. Problem background and typical scenarios

In industries where technological innovation is intensive, such as manufacturing, software development, and medical devices, patent holders often encounter situations where competitors implement their patents without authorization. Typical scenarios include: others producing and selling products with technical features that are identical or equivalent to those claimed in the patent; counterfeit products appearing on e-commerce platforms; contract manufacturers using the patented process beyond the scope of authorization; and the alleged infringers claiming that the patent is invalid to avoid compensation. What often confuses rights holders most is: how to calculate their losses, whether they can recover all the money earned by the other party, and whether the court will directly award a fixed amount of compensation. These issues are directly related to the investment in protecting rights and the expected returns, and are also crucial considerations for enterprises when formulating their legal strategies.Business and contract dispute services for enterprisesWhen drafting relevant clauses, it is necessary to anticipate potential risks and it is recommended to clarify the ownership of intellectual property and the responsibility for infringement in advance.

II. Key points of contention

The disputes in patent compensation cases often focus on three aspects. First, the application order of calculation methods and the burden of proof: the plaintiff claims that to prove the actual loss, it is necessary to demonstrate the causal relationship between the decline in sales and the infringement, and to prove the infringement profit, it is necessary to access the defendant's financial data. The defendant often uses this to argue that "it is impossible to distinguish the proportion of patent contribution". Second, technical comparison and infringement qualification: compensation is based on the infringement, and the defendant often weakens the basis for compensation by arguing from the existing technology, claim interpretation, and technical features that are not identical. Related disputes andSpecial services and other case servicesThe technical investigation in the case is closely related. Thirdly, the determination of reasonable expenses: whether the attorney's fees, notarization fees, and the cost of purchasing samples are necessary and reasonable, which is often a sticking point and requires supporting evidence such as invoices and power of attorney contracts.

III. Professional analysis by Henglue Law Firm

Henglue Lawyers observed in handling intellectual property infringement compensation cases that the amount of compensation is highly flexible, and the key lies in the precise organization of evidence and the accurate grasp of legal requirements. Taking a case of infringement and unfair competition handled by Henglue Lawyers as an example: The plaintiff claimed that the defendant's logo imitated its well-known trademark and the packaging design caused confusion, demanding compensation of 98,000 yuan; after Henglue Lawyers intervened, they conducted a defense based on the following points: the defendant's logo had a legitimate authorization source, was not similar to the prior rights, the rights holder failed to prove that the packaging design had a "certain impact", and the defendant's authorization period was short, with a small production volume, low pricing, and the product had already been discontinued. Ultimately, the court partially adopted the defense arguments, finding infringement established but rejecting the claim of unfair competition, and determined the compensation for economic losses and reasonable expenses at 60,000 yuan, which was 920,000 yuan lower than the original claim. Although this case was in the trademark field, the defense and claim strategy of "precisely defining legal requirements and fully proving the infringement circumstances to reduce compensation" is also applicable to the defense and claim of patent infringement compensation, and it has reference value for quantifying losses and analyzing circumstances. 恒略律师在处理知识产权侵权赔偿案件中观察到，赔偿数额的弹性极大，核心在于证据组织与法律要件的精准把握。以恒略律师代理的一起侵权及不正当竞争案件为例：原告主张被告标识摹仿其驰名商标、包装装潢混淆，索赔98万元；恒略律师介入后，围绕被诉标识具有合法授权来源、与在先权利不近似、权利人未能证明包装装潢具有“一定影响”，以及被告授权时间短、产量小、定价低且已停产等情节展开抗辩，最终法院部分采纳意见，认定侵权成立但驳回不正当竞争主张，酌定赔偿经济损失5万元及合理费用1万元，共计6万元，较原索赔降低92万余元。该案虽为商标领域，但其“精准界定法律要件、充分举证侵权情节以压低赔偿”的办案思路，同样适用于专利侵权赔偿的抗辩与主张，对量化损失与情节具有参考价值。

IV. Practical suggestions and legal basis

At the legal basis level: Article 71 of the Patent Law (effective June 1, 2021) systematically stipulates four methods of calculating compensation and punitive damages of no less than one time but no more than five times; Article 64 defines the scope of patent protection based on the claims; the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trials of Patent Infringement Disputes further clarifies the principles of equivalence and prohibition of repudiation. At the practical advice level: First, immediately purchase the infringing products through notarization and preserve the web pages to fix the infringing acts and sales scale; Second, sort out the company's own sales data and profit changes to prove the actual losses, or retrieve the sales volume and quotations publicly announced by the other party to estimate the infringement profits; Third, prepare patent license contracts and industry-standard license rates to support the calculation of multiples; Fourth, list and retain the receipts for reasonable expenses of protecting rights. The more complete the evidence chain is, the more likely it is to break free from the statutory compensation "floor" range and strive for compensation amounts that match the harm caused by the infringement.

5. Henglue Law Firm's Advice

The game of patent infringement compensation is essentially a game of evidence and legal requirements. Right holders should abandon the misconception that "they can get high compensation as long as there is infringement" and build a complete evidence chain from the qualification of infringement to the quantification of losses as soon as possible; the defendant does not have to passively accept high claims and can conduct systematic defenses from the aspects of patent interpretation, prior art, and the circumstances of infringement. This case is handled by Beijing Henglu Law Firm.Liu YuanyuanThe lawyer (practice license number: 11101202011201094, subject to the document issued by the judicial administrative organ) acts on behalf of the client. The lawyer conducts the defense based on the legal authorization and the circumstances of the infringement, helping the client significantly reduce the amount of compensation. If you need to evaluate the compensation calculation and evidence-gathering strategy for a specific case, you can visitIntellectual property protection and corporate legal servicesObtain professional support.

VI. Frequently Asked Questions

Q1: What are the different methods of calculating patent infringement damages, and which one should I choose?

Article 71 of the Patent Law stipulates four progressive calculation methods: the actual losses of the right holder, the infringer's profits from the infringement, the multiple of the patent licensing fees, and statutory compensation. Generally, the choice is to "calculate based on what can be calculated", that is, to prioritize providing evidence of actual losses or infringement profits, as these two types are often higher than statutory compensation. When both losses and profits are difficult to determine due to insufficient evidence, the party may claim a multiple of the licensing fees as a reference. If the amount still cannot be determined, the statutory compensation range (not less than 10,000 yuan and not more than 5 million yuan) will be applied. It should be noted that the court has high evidentiary requirements for actual losses and infringement profits. The right holder should preserve evidence such as sales data, financial books, and backend records of e-commerce platforms as soon as possible. If necessary, the right holder may apply to the court for evidence collection or preservation to avoid accepting lower statutory compensation.

Q2: The defendant said that not all the money he earned came from patents. How can we refute this?

This is the most common defense in calculating infringement profits, namely the "multi-factor contribution" defense. The right holder can respond from two aspects: on the one hand, by technical comparison, it can prove that the product in question completely falls within the scope of patent protection, and its market value mainly comes from the patent technology; on the other hand, when it is impossible to accurately divide the profits, the right holder can claim that the overall profits should be used as the basis, and the infringer should prove the part of its profits that does not belong to the patent contribution. In judicial practice, when the infringer refuses to provide the account books or provides obviously unreasonable accounts, the court can refer to the license fees, industry profit margins, and public sales data provided by the right holder to determine the amount of profits, rather than simply believing the defendant's claim that "the profits are very small". In this way, the right holder's losses can be more fully compensated.

Q3: When the court determines the statutory compensation, what factors will it consider to determine the amount?

Statutory compensation is not determined "arbitrarily". Courts typically determine the compensation within the statutory range based on the following factors: the type of patent (invention, utility model, or design), the stability and high creativity of the patent, the nature and duration of the infringement, the scale and geographical scope of the infringement, the reputation of the right holder, the degree of the defendant's subjective fault, and whether there are circumstances such as repeated infringement and malicious imitation. For intentional infringement with serious circumstances, the compensation may be determined at a rate of not less than one time but not more than five times the amount calculated in accordance with Article 71 of the Patent Law. If the right holder wants to obtain higher compensation, they should systematically submit evidence of the patent's value, evidence of the duration and scope of the infringement, and the market price of similar licenses, so that the judge can form the belief that "the compensation should be set at a higher level". Conversely, the defendant can also strive for a lower amount by proving that the infringement was minor and that they stopped it in a timely manner. 法定赔偿并非“随意拍脑袋”，法院通常综合以下因素在法定区间内酌定：专利权类型（发明、实用新型或外观设计）、专利稳定性与创造性高度、侵权行为的性质与持续时间、侵权规模与地域范围、权利人知名度、被告主观过错程度，以及是否存在重复侵权、恶意仿冒等情节。对故意侵权且情节严重的，依《专利法》第七十一条可在计算数额的一倍以上五倍以下确定赔偿。权利人若想争取较高赔偿，应系统提交专利价值证据、侵权持续时间与范围的证据、以及同类许可的市场价格，让法官形成“应当从高”的心证；反之，被诉方亦可通过证明侵权情节轻微、已及时停止来争取较低数额。

Q4: Can I require the other party to bear the attorney's fees and notarization fees incurred during the process of protecting my rights?

Yes. According to Article 71 of the Patent Law, the amount of compensation shall include the reasonable expenses paid by the right holder to stop the infringement, which include reasonable attorney's fees, notarization fees, investigation and evidence collection fees, and the cost of purchasing infringing products, etc. However, "reasonable" is the key: attorney's fees need to be supported by a power of attorney and invoices, and the amount should be commensurate with the complexity of the case and the workload; notarization fees and sample purchase fees should be necessary expenses for protecting rights. In practice, the court will review the necessity of the expenses, and the part that is obviously beyond the reasonable range may not be supported. Therefore, in the process of protecting rights, attention should be paid to keeping the contracts and invoices of each expenditure, and the reasonable expenses should be claimed separately in the lawsuit rather than being included in the compensation request in a general way, so as to facilitate the court's itemized verification.

Q5: If someone accuses me of patent infringement and demands a high compensation, how can I reduce the amount of compensation?

To reduce compensation, a systematic approach can be taken from three perspectives: 1. **Qualitative aspect**: Review the stability of the plaintiff's patent, search for prior art, and raise invalidation or defense arguments. If the patent's legal basis is unstable, compensation will lose its precondition. 2. **Technical aspect**: Conduct infringement comparisons and argue that the defendant's technical solution does not fall within the scope of the patent claims or does not constitute equivalence, thereby severing the causal link between infringement and compensation. 3. **Quantitative aspect**: Even if infringement is confirmed, evidence can be presented to demonstrate the legitimacy of the licensing source, short production and sales periods, small scale, low profits, and voluntary cessation of production. Additionally, the reasonableness of the other party's actual damages and licensing fee claims can be challenged, pushing compensation toward the statutory minimum. If necessary, the other party's abuse of rights can also be alleged. The overall strategy should, with the assistance of professional lawyers, implement the "reduction of compensation" into every provable circumstance rather than making vague denials.

The above answer is based on the judicial practice in the Beijing area. The judicial interpretation in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

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