The introduction of a punitive damages system for intellectual property rights violation has won huge acclaim among industry insiders after Premier Li Keqiang proposed the move in his Government Work Report for the year, delivered on March 5. Such punitive damages would involve compensation that exceeds the plaintiff's actual loss, creating a greater deterrence against such violations. Punitive damages mean fortified protection and more severe punishments agree with the judicial spirit. In addition to establishing a punitive damages system, China will also see multiple departments working together to provide diverse IP protection channels, including administrative and judicial methods as well as mediation.

Source: China Daily