Why this “Measures” was issued
The calculation of illegal business turnover is a key basis for administrative penalties in trademark-infringement cases. However, China’s current Trademark Law and its Implementing Regulations only set out relatively principled rules, without detailed standards. Local enforcement agencies often faced disputes over inconsistent calculation methods in complex cases, increasing administrative-enforcement risk.
To unify enforcement standards and improve the transparency and predictability of penalties, China’s National Intellectual Property Administration (CNIPA) and the State Administration for Market Regulation jointly issued the “Measures for Calculating the Illegal Business Turnover in Trademark Infringement Cases” (the Measures).
What the 19-article Measures covers
1. Definition of illegal business turnover
Illegal business turnover means the total value of infringing goods involved in the trademark-infringement act, or the business revenue generated by the infringement. The definition covers both “goods value” and “revenue” scenarios.
2. Standards for general cases
Goods already sold are calculated at the actual sale price; unsold goods at the marked price or the ascertained actual sale price; where the actual price cannot be ascertained or there is no marked price, the market intermediate price applies.
3. Standards for complex cases
Articles 7 to 14 set calculation standards for various complex scenarios: infringing goods used in labor-subcontracting with materials supplied, promotional freebies, refurbished goods, trademark-identification infringement, knowingly facilitating infringement, rented infringing goods, commercial-promotion infringement, and trademark-license infringement.
How the market intermediate price is determined
Where a published guide retail price exists, that price applies; where none is published, the price may be determined by selecting comparable products in the market. The market intermediate price provided by the party or the right holder may be used as a reference once verified; where the party objects and provides evidence, it shall be considered.
Practical tips for brand owners
For rights holders, accurately calculating illegal turnover is key to advocating stronger administrative penalties and improving certainty in enforcement. Manage trademark use and evidence well; for classification and portfolio planning, see our China trademark class lookup. Also keep an eye on trademark/patent fee monitoring to protect right stability.
FAQ
Is “illegal business turnover” the same as “illegally obtained profit”?
No. Illegal business turnover is the total value of infringing goods or the revenue from infringement, and is the main base for penalties (especially fines); illegally obtained profit focuses on the infringer’s actual gain. The two are different, and these Measures regulate the former.
How do sold and unsold infringing goods differ in calculation?
Sold goods use the actual sale price; unsold goods use the marked price or the ascertained actual sale price; where the price cannot be ascertained or there is no marked price, the market intermediate price applies.
How is the market intermediate price determined?
Where a published guide retail price exists, that price applies; otherwise it may be determined by selecting comparable products in the market. Prices provided by the party or right holder may be used as a reference once verified, but objections backed by evidence must be considered.
Which amounts are excluded from illegal business turnover?
The Measures provide for handling cases where the actual turnover cannot be verified, and special circumstances where amounts are not counted; specifics follow Article 19 and its supplementary notes.
Final notes
Trademark-infringement enforcement in China is becoming more unified and standardized. For brand protection and enforcement support, contact Hefei Zhihaiyida Patent Agency (agency code 34408).
Source
CNIPA & SAMR: Interpretation of the “Measures for Calculating the Illegal Business Turnover in Trademark Infringement Cases” (2024-12-23). Original: cnipa.gov.cn
This article introduces the intellectual property system of the People’s Republic of China (China). For the latest official rules, refer to the competent Chinese authorities.