Detailed explanation of brand infringement penalty provisions and recovery methods

With the increasing awareness of trademark protection, there are more and more trademark infringement cases. In order to prevent this from happening, every operator needs to understand the scope of trademark infringement and how to effectively pursue compensation after infringement occurs.

Cease infringement and confiscate and destroy infringing goods

Once a trademark infringement is discovered, the infringer must immediately stop all infringing activities, including but not limited to selling and producing infringing goods. In addition, the law also provides for the confiscation or destruction of infringing goods and their production tools and equipment in accordance with the law to ensure that infringement does not continue.

Fines and criminal liability

The infringer must pay a fine based on the illegal income from the infringement and the circumstances of the infringement. The amount of the fine is usually less than 50% of the illegal business volume or less than five times the profit. The main person responsible will also be fined less than 10,000 yuan. fine. For trademark infringement that constitutes a crime, in addition to paying a fine, the infringer will also face serious criminal liability.

Recovery methods

Determination of the amount of compensation

The determination of the amount of infringement compensation is the key to recovery of brand infringement. If the rights holder can prove actual losses suffered due to infringement, the amount of compensation will be calculated based on the actual losses. However, in many cases, the actual loss is not easy to determine. In this case, the law allows compensation to be made with reference to the illegal gains of the infringer. If the infringer’s illegal income is difficult to calculate, the amount of compensation can be reasonably determined by referring to a multiple of the trademark license fee.

Punishment for malicious infringement

For malicious infringement of trademark exclusive rights, especially in serious cases, the law allows the amount of compensation to be determined within a range of more than one time and not more than five times. This provision punishes malicious infringements to a certain extent and serves as a deterrent.

Expenditures to protect one’s own rights and interests

The law also stipulates that the amount of compensation should include the reasonable expenses paid by the right owner to stop the infringement. This protects the legitimate rights and interests of right holders in the recovery process and encourages them to take active actions to stop infringements.

Coping with evidence collection difficulties

During the recovery process, it may happen that the infringer has access to relevant account books and information, which brings certain difficulties to evidence collection. In order to deal with this situation, the court has the power to order the infringer to provide relevant account books and information. If the infringer fails to provide or provides false information, the court can determine the amount of compensation based on the rights holder’s claims and the evidence provided.

To sum up, how to recover penalties for brand infringement is an issue that requires comprehensive consideration of the actual situation and legal regulations. When rights holders face brand infringement, they first need to try their best to collect evidence and clarify their losses. If the actual loss is difficult to determine, the amount of compensation can be determined by referring to the infringer’s illegal income or a multiple of the trademark license fee. In serious cases, the law allows for increased compensation multiples. At the same time, expenses incurred in safeguarding one’s own rights and interests should also be included in the scope of compensation. If the infringer obstructs the collection of evidence, the court has the right to require him to provide relevant information. Through these regulations and measures, compensation for brand infringement will be more powerful and the order of fair competition in the market will be maintained.

If you are dissatisfied with the penalties stipulated in the Trademark Law for trademark infringement, you can file a lawsuit with the People’s Court within 15 days from the date of receipt of the notice. If no appeal is made within 15 days, or the corresponding punishment is not fulfilled, the relevant authorities will apply to the court for enforcement.