Extraterritorial Experience with Intellectual Property Punitive Damages

The punitive damages system originated in the United Kingdom and has been widely developed in the United States. In view of the serious problem of intentional and repeated infringement of intellectual property rights in China, the Civil Code and relevant laws in the field of intellectual property rights have fully introduced a punitive compensation system. However, the application time of punitive damages for intellectual property rights is short, and various problems still exist in judicial practice. Through learning and drawing on the experience of the application of punitive damages for extraterritorial intellectual property rights, we hope to provide a reference for China’s judicial practice. Through comparative law research, it is clear that the principle of prudence and modesty, reasonableness and proportionality of intellectual property punitive damages in China should be followed. The subjective application of the elements shall satisfy the subjective recklessness standard. The objective application requirements shall meet general and dynamic rules. The amount of damages shall be subject to the system of presumption and nominal loss.