According to Article 63 of the Chinese Trademark Law, the amount of compensation for infringement of trademark rights shall be determined according to the actual losses suffered by the right holder due to infringement; if the actual losses are difficult to determine, it may be determined according to the profits obtained by the infringer due to infringement; if the losses of the right holder or the profits obtained by the infringer are difficult to determine, it shall be reasonably determined by referring to the multiples of the trademark license fee. For malicious infringement of trademark rights, if the circumstances are serious, the amount of compensation may be determined at a level not less than one times but not more than five times the amount determined in accordance with the above method. The amount of compensation shall include the reasonable expenses paid by the right holder to stop the infringement.
In order to determine the amount of compensation, the people’s court may order the infringer to provide the books and materials related to the infringement if the right holder has tried his best to provide evidence and the books and materials related to the infringement are mainly in the hands of the infringer; if the infringer does not provide or provides false books and materials, the people’s court may determine the amount of compensation with reference to the right holder’s claims and the evidence provided.
If the actual losses suffered by the right holder due to infringement, the profits obtained by the infringer due to infringement, and the registered trademark license fee are difficult to determine, the people’s court shall award compensation of less than 5 million yuan according to the circumstances of the infringement.
When hearing trademark dispute cases, the People’s Court shall, at the request of the right holder, order the destruction of goods that are counterfeit registered trademarks, except in special circumstances; order the destruction of materials and tools mainly used to manufacture goods with counterfeit registered trademarks, without compensation; or, in special circumstances, order the prohibition of the aforementioned materials and tools from entering commercial channels, without compensation.
Goods with counterfeit registered trademarks shall not enter commercial channels after only the counterfeit registered trademarks are removed.