[Direct answer]In the Beijing area, the cost of trademark infringement litigation consists of three parts: court litigation fees, attorney fees, and reasonable expenses for protecting rights (notarization fees, investigation fees, appraisal fees, etc.). The litigation fees are accumulated in stages according to the amount of the litigation request. The higher the claim amount, the more prepayments are required, and the losing party ultimately bears the cost; attorney fees are usually negotiated based on the subject of the claim and the difficulty of the case, and risk-based fees are subject to regulatory restrictions; reasonable expenses can be borne by the infringer with supporting documents. Taking similar cases handled by our firm as an example, the plaintiff claimed 980000 yuan, but the court ultimately awarded only 60000 yuan, indicating that there is often a large gap between the claimed amount and the actual award.

I. Problem background and typical scenarios

When a company is sued for trademark infringement, it usually falls into three categories: First, the company produces and sells products that are similar to others' registered trademarks, and the rights holder sends a letter or files a lawsuit against it; Second, the company uses logos that are similar to others' well-known product names or packaging designs, and is accused of infringement by the rights holder.Unfair competitionThirdly, they may be involved in infringement passively due to defects in the authorization of upstream suppliers. In contrast, when rights holders take the initiative to protect their rights, they also need to estimate the cost and return of litigation. Many parties are most concerned about how much the lawsuit will cost and how much they can recover before suing.

II. Key points of contention

First, the amount of compensation awarded by the court is highly flexible. The court determines the compensation based on the right holder's reputation, the circumstances of the infringement, and reasonable expenses. However, the original plaintiff's claim is often much higher than the actual compensation awarded by the court. Second, the rules for bearing litigation fees and attorney's fees are different: litigation fees are generally borne by the losing party, while attorney's fees are usually borne by each party, unless otherwise specified in a contract or by law. Third, the determination of reasonable expenses. Expenses such as notarization, purchasing evidence, and appraisal must be supported by receipts and be necessary to be included in the compensation. Fourth, the nature of the infringement affects the direction of the expenses: only if the infringement is confirmed can the expenses be claimed.Trademark infringementHowever, if the act of unfair competition is not determined to exist, the base amount and scope of compensation will be significantly reduced.

III. Professional analysis by Henglue Lawyers

Taking a trademark infringement and unfair competition dispute handled by our firm's lawyers as an example: The plaintiff, Company A, is a well-known paper industry company. Its EFGH trademark, approved for use in Category 5 sanitary napkins, has been recognized as a well-known trademark by courts and administrative authorities in multiple regions. The defendant, Company B, obtained authorization from a third party in September 2023 to use the EFGK registered trademark and design patent to produce and sell EFGK sanitary napkins, which were sold through C Company's e-commerce platform. In April 2024, Company A sued, alleging imitation of a well-known trademark and confusion over packaging and decoration, seeking compensation of 980,000 yuan. Company B commissioned our firm's lawyers to defend against the claims, arguing that the logo had legitimate authorization and was not similar, that the packaging and decoration did not constitute unfair competition, and that the high compensation claim lacked basis. The court partially accepted the defense, ruling that EFGK constituted trademark infringement by imitating a well-known trademark, but rejected the claim of unfair competition. It awarded Company B compensation of 60,000 yuan (50,000 yuan for economic losses and 10,000 yuan for reasonable expenses), a reduction of over 920,000 yuan from the original claim of 980,000 yuan. This case was handled by Beijing Henglu Law Firm.Liu YuanyuanThe attorney (practice license number: 11101202011201094, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Before initiating or responding to a lawsuit, it is necessary to conduct a cost-benefit analysis first. Right holders should evaluate the stability of their registered trademarks, the evidence of their popularity, and the scale of the infringement to avoid unsuccessful high-value claims. Defendants should verify the sources of authorization for their own logos and the differences between their own logos and prior trademarks, in order to find grounds for defense against infringement or reduce compensation amounts. Legal basis: Article 63 of the Trademark Law of the People's Republic of China (amended in 2019 and implemented on November 1, 2019) stipulates that the compensation for infringement shall be determined in the order of the actual losses of the right holder, the profits of the infringer, and the multiple of the trademark license fee. For serious malicious circumstances, punitive damages of not less than one but not more than five times the statutory limit of 5 million yuan may be imposed. Article 64 of the Trademark Law of the People's Republic of China stipulates that if the actual losses suffered by the right holder due to infringement are difficult to determine, they may be reasonably determined by referring to the multiple of the trademark license fee. The Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trials of Civil Disputes over Trademarks provides rules for determining reasonable expenses. It is recommended to list and keep receipts for reasonable expenses incurred during the protection of rights, and to seek legal assistance when necessary.Specialised legal servicesThe system sorts out the evidence and calculates the compensation amount.

5. Henglue Law Firm's Reminder

The cost of trademark litigation is highly asymmetric compared to the amount of compensation that can be recovered: the amount claimed in the lawsuit does not equal the amount awarded. Blindly overstating the claim not only results in higher litigation fees, but also may expose the negotiating bottom line. It is recommended that right holders include reasonable expenses and attorney fees in their overall budget, while the defendant should verify the authorization chain and degree of similarity as soon as possible. If necessary, they can defend against the claim by arguing that the infringement is minor, the authorization is legitimate, and there is no confusion. For multi-layered entities involved in franchising and e-commerce sales, it is also necessary to clarify the faults and responsibilities of each entity to avoid paying for the upstream's defects.

VI. Frequently Asked Questions

Q1: Is there a high chance of winning a trademark infringement lawsuit?

It depends on the degree of similarity between the logos, the popularity of the right holder's trademark, and the source of the defendant's authorization. If there is a legal authorization and the overall situation is not confusing, the defense space is large; if the defendant is trying to piggyback on the goodwill of a well-known trademark, the probability of being found guilty of infringement is high.

Q2: What evidence do I need to prepare?

The right holder prepares the trademark registration certificate, evidence of popularity, infringing physical goods, and notarized purchase records; the defendant prepares authorization chain documents, evidence of prior use, and comparison materials showing the differences between the prior trademark and the infringing trademark.

Q3: What are the approximate costs of attorney fees and litigation fees?

The litigation fees shall be prepaid in installments according to the amount of the claim and shall be borne by the losing party; the attorney's fees shall be negotiated based on the subject matter and difficulty, and the risk-based attorney's fees shall be subject to regulatory restrictions; and the reasonable expenses for protecting rights may be claimed from the other party with supporting documents.

Q4: How long does a trademark infringement lawsuit take?

The first-instance trial usually lasts four to six months, and the period for determining infringement and assessing compensation is even longer. The second-instance trial is not included in this calculation, and the overall process often takes more than half a year to a year.

Q5: What exactly should I do in the first step?

First, check the authorization sources of our own logos and the potential risks of similarity. Evaluate the cost-benefit ratio, then decide whether to sue for compensation or defend against claims to minimize losses. If necessary, hire a lawyer as soon as possible to secure evidence and formulate strategies.

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 relevant evidence materials, so as to avoid missing the statutory time limit.Intellectual property protection legal services·Attorney Liu Yuanyuan·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open 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. If you encounter disputes, please consult a practicing lawyer in time.