[Direct answer]In the Beijing area, the process is divided into four steps: first, calculate the actual losses of the rights holder; if the losses are difficult to determine, use the infringer's illegal income as a basis; if it's still difficult to determine, use a reasonable multiple of the patent license fee; if all three methods fail, the court will determine the compensation at its discretion within a range of no less than 30,000 yuan and no more than 5 million yuan — at the same time, attention should be paid to punitive damages: if the infringement is intentional and the circumstances are serious, the compensation can be increased by one to five times the above-mentioned base amount. The most valuable thing in protecting rights is not the legal provisions, but the practical evidence path that can be implemented.

I. Problem Background and Typical Scenarios

Patent products are imitated and sold by competitors. When the right holder claims compensation, the other party refuses to disclose any information about its financial records, and the right holder cannot clearly quantify its own losses. Patent infringement compensation has always been the "decisive point" in intellectual property litigation: if the calculation method is incorrect or the evidence path is missing, the amount determined in the first instance may differ from the expected amount by a significant margin.

II. Key points of contention

First, the order and selection of the four calculation paths. Second, the applicable conditions and base amount of punitive damages. Third, the discretionary factors of statutory damages. Fourth, the application of evidence disclosure and obstruction of evidence.

III. Professional analysis by Henglue Lawyers

This case is handled by Beijing Henglu Law FirmLiu YuanyuanAttorneys (Practice Certificate No.: 11101202011201094, subject to the documents issued by the judicial administrative authorities) represent clients. **First Level**: Calculation of the priority and choice of compensation paths: According to Article 71 of the Patent Law, compensation shall be determined based on the actual losses of the rights holder or the infringer’s unlawful gains. If these are difficult to determine, the compensation shall be reasonably determined based on a multiple of the patent’s licensing fees. If all of these are unclear, statutory compensation (ranging from 30,000 to 5 million yuan) shall apply. The priority is a progressive fallback, but the rights holder has strategic choice over the evidentiary path: - The loss path is suitable for rights holders with complete sales records and profit margins. - The gain path is suitable for infringers with verifiable sales data (e.g., e-commerce data or customs declarations). - The licensing fee multiple path is suitable for patents with existing genuine licensing contracts. All three paths require evidence preparation prior to litigation, rather than being selected during the trial. **Second Level**: Punitive damages: Article 71(1) of the Patent Law stipulates that for intentional infringement or serious circumstances, compensation may be determined at 1 to 5 times the base amount. - "Intentionality" refers to the infringer’s subjective state (e.g., continuing infringement after receiving a warning letter or repeating infringement despite a court judgment). - "Serious circumstances" refer to the scale, duration, and whether the infringement disrupts industry order. The base amount for punitive damages remains the amount determined by the first three paths, with the evidentiary focus on proving "intentionality." - Evidence such as warning letters, attorney letters, and email exchanges prior to litigation must be preserved—these constitute clear proof of "knowledge." **Third Level**: Factors for determining statutory compensation: - Patent type (invention patents > utility models and design patents). - Nature and scale of the infringement (manufacturing > sales, wholesale > retail). - Duration and scope of the infringement. - Contribution of the patent to product profits. - Reasonable expenses incurred by the rights holder (attorney fees, notarization fees, purchase of infringing products)—these expenses must be claimed separately and not deducted from the total compensation. **Fourth Level**: Evidence disclosure and obstruction of evidence: - If the rights holder has exhausted evidentiary efforts and the account books are controlled by the infringer, the court may order the infringer to submit them. - If the infringer refuses to submit them without justification, the court may determine the compensation amount based on the rights holder’s claims. - The "account books lost in a fire" tactic now backfires on the infringer themselves. - Notarized preservation of e-commerce platform sales data and third-party data platform analysis reports are mainstream forms of evidence for proving the profitability path. **Fifth Level**: Practical strategies: - Conduct a "three-step calculation" before litigation: - Calculate the evidence for your own losses. - Calculate the verifiable gains of the infringer. - Calculate the base amount for licensing fees. - Select the path with the strongest evidence as the main claim, with the other paths serving as backups and references. - Use the calculation path as the anchor for mediation and settlement offers, which are more persuasive than arbitrary pricing.

IV. Practical suggestions and legal basis

The first step is to secure evidence of "intentional infringement" before filing a lawsuit: warning letters and receipt records. The second step is to select a calculation path and strengthen the corresponding evidence. The third step is to claim separate compensation for reasonable legal expenses. The fourth step is to request the court to disclose the defendant's account books and other evidence, making full use of the rules on obstruction of evidence. The main legal basis: Articles 64, 71, and 74 of the Patent Law of the People's Republic of China, and relevant provisions of the "Interpretation of the Supreme People's Court on the Application of Law in the Trials of Patent Disputes"; the specific application shall be subject to the currently effective regulations.

5. Henglu Law Firm's Reminder

There are three key elements to patent compensation: losses, profits, and royalty multiples. Statutory compensation follows a four-step progressive process, with the path supported by strong evidence being the primary route. Intentional infringement with aggravating circumstances may trigger punitive damages of one to five times the actual damages. A warning letter constitutes irrefutable evidence of "knowing infringement." If the defendant refuses to submit the accounting records, the court may order their submission based on the plaintiff's claims. Protecting rights is a battle of evidence, not just empty rhetoric. For matters involving patent protection and infringement defense, legal assistance can be sought through the following channels:Intellectual property protection and corporate lawThe service obtains a comprehensive solution, which involves the integration of licensing and transfer contractsBusiness and contract disputes in enterprisesFor reference, you can check the section related to the enforcement of compensation paymentsCreditor's rights and debts, and enforcementFor columns related to special rights protection, you can seek advice from usSpecial servicesTeam.

VI. Frequently Asked Questions

Q1: If the other party says it's a loss-making sale, do I not have to compensate them?

No. If the infringer's illegal income is difficult to calculate, it can still be calculated based on the right holder's losses or the multiple of the license fee, or apply statutory compensation; the loss does not affect the establishment of the liability for compensation.

Q2: Under what conditions is punitive damages applicable?

The two conditions of intentional infringement and serious circumstances are indispensable: continuing to infringe after receiving a warning, repeated infringement, etc., can prove "intentional infringement"; the base amount is determined by the losses, income, or multiple of the license fee, and then multiplied by one to five times.

Q3: Can the other party be made to bear the attorney's fees?

Yes. You can claim the reasonable expenses for protecting your rights (attorney fees, notarization fees, and expenses for obtaining evidence) separately. The court will either fully or partially support these claims based on the circumstances of the case, and all relevant documents must be provided.

Q4: What is the maximum amount of statutory compensation that can be awarded?

The statutory compensation range for patents is between 30,000 yuan and 5 million yuan. The court will determine the compensation amount based on factors such as the type of patent, the scale of infringement, the duration of infringement, and the contribution of the patent. When claiming compensation, the claimant should provide evidence to prove that the compensation amount does not exceed the upper limit of the range.

Q5: What should I do if the other party refuses to provide their financial records?

Applicants may request the court to order the defendant to submit the relevant materials. If the defendant refuses to submit the materials without a valid reason, the court may determine the amount of compensation based on the claim of the right holder and the existing evidence, and apply the rule of burden of proof to protect the right holder in a reverse manner.

The above content is based on the judicial practice in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglue Lawyers about specific situations.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, to avoid missing the statutory time limits. →Intellectual property protection legal services·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.