Patent Infringement: China Strengthens Criminal Protection Regarding Intellectual Property
China has strengthened patent protection by lowering the threshold for criminal liability in patent counterfeiting cases, clarifying what constitutes counterfeiting and setting practical, measurable standards. The Ecovis Experts from Shanghai K‑Insight Law Firm explain how these changes reflect China’s growing commitment to robust IP enforcement.
Why This Case Matters
It highlights the increased legal risks for businesses misusing patent indications and signals a stronger push toward safeguarding patentees’ rights.
The Facts
The defendants, Zhao and Zhang, operated a biotechnology company and printed the patent numbers of others on the cosmetics packaging without authorization. They sold over 990,000 yuan worth of counterfeit patented cosmetics, and the value of the unsold products seized was over 570,000 yuan. This resulted in total illegal gains of over 1.56 million yuan.
The Court’s Decision
The court found the defendants guilty of counterfeiting a patent, because using others’ patent numbers on packaging without authorization misled the public into believing the products were patented.
Commentary: The Takeaway for Businesses
The 2025 Interpretation on Several Issues Concerning the Application of Law in Handling Criminal Cases of Intellectual Property Infringement (hereinafter referred to as the “2025 Interpretation”) specifies concrete examples of “counterfeiting others’ patents”, including forging or altering patent certificates, labelling products with the patent numbers of others, and using the patent numbers of others in promotional materials. Furthermore, the 2025 Interpretation reduces the threshold for establishing criminal liability based on practical circumstances, specifying that “serious circumstances” include illegal profit exceeding 100,000 yuan, illegal business volume exceeding 200,000 yuan, or direct economic losses to the patentee exceeding 300,000 yuan.
The lowered threshold for patent counterfeiting offences reflects China’s determination to strengthen the criminal protection of patents. For enterprises, it is essential to strictly review the use of patent indications during development and production to avoid criminal liability due to the intentional or negligent use of others’ patent numbers. Meanwhile, patentees should actively protect their rights. In cases of severe patent counterfeiting, timely reporting to the relevant law enforcement authorities is crucial to safeguarding legitimate rights and interests.
