As part of its efforts to handle the suggestions of deputies to the National People’s Congress about intellectual property rights (IPR) protection, the Supreme People’s Court (SPC) has taken proactive steps to enhance judicial protection for innovation-driven development and foster a sound business environment. 

In recent years, the rapid development of new technologies such as big data, artificial intelligence and genetic technology has led a rising number of IPR cases, demanding higher-standard judicial services. 

In 2023, courts nationwide applied punitive damages in 319 civil cases of IPR infringement, marking a 117 percent year-on-year increase. The total amount of compensation reached 1.16 billion yuan ($159 million), a 3.5-fold surge.

The SPC has issued guidelines on supporting technological innovation through high-quality adjudication services, focusing on prominent issues in technological innovation-related adjudications. The document consists 25 articles encompassing 98 practical measures spanning criminal, civil, and administrative adjudication domains in order to protect technological innovation through high-quality judicial services and further enhance IPR protection.

Some NPC deputies submitted suggestions regarding the protection of patent rights, prevention of patent abuse, and safeguarding fair competition to uphold a conducive business environment. They also raised concerns about the misuse of IPR protection mechanisms for malicious litigation, online extortion, and cyber infringement, which disrupt market order and hinder fair competition.

In response, the SPC has taken resolute actions to curb such abuses of IPR through strict legal regulations on abnormal patent applications and malicious litigation.

Moreover, courts have intensified efforts to crack down on monopolistic and unfair competition practices, such as predatory pricing and forced tie-in sales, in order to foster a fair, open and innovative internet-based platform economy. They have also prioritized handling false advertising and commercial defamation disputes to safeguard and promote branding for private enterprises.

From 2013 to 2023, courts nationwide concluded 977 first-instance monopolistic civil cases. In June 2024, the SPC issued a judicial interpretation on the application of law in adjudicating monopoly-related civil disputes, which provides comprehensive guidance on procedural and substantive legal matters in anti-monopoly litigation.

In addition, some NPC deputies have stressed the need to streamline the complex procedures of judicial protection to enhance the efficiency and effectiveness of patent rights protection. 

Courts have responded with accelerated modernization to strengthen the IPR adjudication system and capabilities, implementing measures to streamline procedures in handling IPR cases.

With 558 grassroots courts nationwide possessing jurisdiction over IPR civil cases, China continues to optimize the jurisdictional layout for IPR cases to establish a fair, efficient and comprehensive judicial protection system.