China Strengthens Intellectual Property Protection with New Specialized Tribunals and Harsher Penalties

Introduction: A New Chapter in IP Enforcement

In a clear demonstration of its commitment to fostering innovation and protecting
the rights of creators, China has taken significant steps in 2025 to strengthen its
intellectual property (IP) protection regime. The establishment of new specialized
IP tribunals in several major cities and the introduction of harsher penalties for

infringement mark a new chapter in China’s IP enforcement efforts. For foreign
companies, which have long cited IP protection as a key concern when doing
business in China, these developments are a welcome sign of progress and offer
greater confidence in the legal system’s ability to safeguard their valuable
intangible assets.

This article examines the key features of China’s enhanced IP protection framework,
including the role of the new specialized tribunals and the impact of the increased
penalties for infringement. It also provides practical guidance for foreign companies
on how to leverage these new mechanisms to protect their IP rights in China.

Specialized IP Tribunals: A Forum of Expertise

A cornerstone of the new IP protection framework is the establishment of
specialized IP tribunals within the existing court system. These tribunals, which are
now operational in cities such as Shanghai, Guangzhou, and Suzhou, are staffed by
judges with specialized expertise in IP law. This concentration of expertise is
designed to ensure that complex IP cases are handled with a high degree of
professionalism and consistency.

The new tribunals have jurisdiction over a wide range of IP cases, including patent,
trademark, copyright, and trade secret disputes. They are also empowered to grant
preliminary injunctions and to award significant damages to rights holders,
providing a more effective deterrent against infringement.

Harsher Penalties: A Stronger Deterrent

In addition to the establishment of specialized tribunals, China has also amended
its IP laws to introduce harsher penalties for infringement. The statutory damages
for patent and copyright infringement have been significantly increased, and the
courts have been given greater discretion to award punitive damages in cases of
willful or repeated infringement.

These increased penalties are intended to send a strong message to infringers that
the costs of IP theft will be high. They also provide a more meaningful remedy for
rights holders who have suffered significant losses as a result of infringement.

Implications for Foreign Companies

The strengthening of China’s IP protection regime has several important
implications for foreign companies:

Greater Confidence in the Legal System: The new measures provide foreign
companies with greater confidence that their IP rights will be protected in
China. This will encourage more companies to bring their latest technologies
and innovations to the Chinese market.

More Effective Enforcement: The specialized IP tribunals and harsher
penalties provide foreign companies with more effective tools to enforce their
IP rights. This will make it easier to take action against infringers and to obtain
meaningful remedies.

A More Level Playing Field: By strengthening IP protection, China is creating a
more level playing field for all companies, both foreign and domestic. This will
foster a more competitive and innovative market environment.

Best Practices for Protecting IP in China

To take full advantage of China’s enhanced IP protection regime, foreign companies
should:

Proactively Register IP Rights: The first and most important step in
protecting IP in China is to proactively register all patents, trademarks, and
copyrights with the relevant authorities. This is a prerequisite for taking any
enforcement action.

Develop a Comprehensive IP Strategy: Companies should develop a
comprehensive IP strategy that is tailored to the specific risks and
opportunities of the Chinese market. This strategy should include measures
for both protecting and enforcing IP rights.

Work with Experienced Legal Counsel: Navigating China’s IP legal system
can be complex. It is essential to work with experienced legal counsel who
have a deep understanding of the local laws and practices.

Conclusion: A New Era of IP Protection

The recent enhancements to China’s IP protection regime are a clear indication that
the country is serious about creating a world-class environment for innovation. For
foreign companies, these developments represent a significant step forward and
offer a more secure and predictable legal framework for protecting their most
valuable assets. By taking a proactive and strategic approach to IP management,
foreign companies can thrive in this new era of IP protection in China.