Calculation Method for Compensation of Trademark Infringement

Calculation Methods for Compensation in Trademark Infringement Cases

In commercial competition, trademarks are one of the important assets of enterprises. They not only represent the brand image of enterprises but also carry consumers' trust in product quality. However, trademark infringement occurs frequently, and how to reasonably calculate the compensation amount has become a major challenge in judicial practice. According to the provisions of China's Trademark Law, there are usually three ways to calculate the compensation for trademark infringement.

Firstly, the compensation amount can be determined based on the actual losses of the rights holder. For example, in a typical case, a well-known brand found that its trademark was used without authorization by others, leading to a significant decline in market sales. During the trial, the court relied on sales data and changes in market share provided by the brand, ultimately determining that the infringer must compensate 5 million RMB for economic losses. This method requires the rights holder to provide detailed evidence to prove the specific losses caused by the infringement.

Secondly, if the rights holder's actual loss is difficult to determine, compensation can be based on the benefits obtained by the infringer due to the infringement. In another case, a small enterprise used the trademark of an international well-known brand without authorization, making huge profits through counterfeit products. After investigation and evidence collection, the court ascertained that the infringer had profited more than 3 million RMB and ruled that they should fully return their earnings as compensation. This approach emphasizes the economic sanction effect of infringement behavior and helps deter potential infringers.

Trademark law also stipulates a statutory compensation system, which means that when the above two calculation methods cannot be applied, the People's Court can decide on a certain amount of compensation based on the specific circumstances of the case. This provision provides flexibility in resolving complex and changing trademark infringement disputes. For instance, in some cases, although the infringement is clear, direct evidence may be lacking to accurately estimate losses or benefits. In such situations, judges will make rulings by comprehensively considering factors such as the nature and duration of the infringement. The Supreme People's Court has clearly stated that the statutory compensation amount is generally no less than 50,000 RMB, but it should not be too high to avoid unnecessary burdens.

It is worth noting that besides economic compensation, trademark infringement may also involve non-property forms of responsibility such as ceasing infringement and eliminating influence. These measures aim to restore the legitimate rights of the rights holder and maintain fair competition order. For example, in a trademark infringement case involving the food industry, the defendant not only needs to pay the corresponding compensation but also publicly apologizes and promises not to use related identifiers again.

In summary, the calculation of compensation for trademark infringement is not a simple mechanical process but requires comprehensive consideration of various factors. Whether following the principle of restitution or reflecting punitive nature, the ultimate goal is to protect intellectual property, encourage innovation, and promote healthy development of the market economy. Both rights holders and the general public should attach importance to the protection of trademark rights and jointly create a good atmosphere of respecting knowledge value.