American Patent Infringement Punitive Damages System And The Enlightenment On China

The fundamental purpose of patent system is to protect invention and encourageinnovation. A significant increase in patent infringement cases and the status of high costand low income on patent protection reduces “encouraging innovation” function of patentsystem greatly. The controversy of Chinese Patent Law’s introduction of punitivedamages system came into being. There are very few countries apply patent infringementpunitive damages system, but America is included. From1793, there are more than200years of history of American patent infringement punitive damages system. Studying thelegislative evolution, judicial evolution as well as the operation of American patentinfringement punitive damages system, looking for positive and negative influence of thesystem can provide the reference for building patent infringement punitive damage systemin China. We can absorb good experience and avoid the problems existing in the operationof American patent infringement punitive damages system.The paper firstly reviews the domestic and foreign current research situation, and onthis basis, introduces the origin country of patent infringement punitive damages system–United States, whose evolution of patent infringement punitive damages system and theimpact of it. American patent infringement punitive damages system applies only in thecase of willful patent infringement. The “willful” standard experienced three stages, whichincludes affirmative duty on due care, abolition of adverse inferences and theestablishment of “objective reckless” standard. The positive impact of patent infringementpunitive damages system is to maintain the patentees’ innovative enthusiasm. In contrast,continuous emerging of NPEs is an important negative impact of the system. Consideringthe development and present status of American patent infringement punitive damagessystem as reference, analyze the impact of the introduction of punitive damages forChinese Patent Law. In the author’s opinion, the introduction of punitive damages systemwill be a challenge to our current patent quality, determination of patent infringementcompensation amount and patent infringement trial system. Combining with the Americanand Chinese actual situation of patent law, discuss how to establish patent infringement punitive damages system in China. The final conclusion of this paper is that bringing thepunitive damages system to Chinese Patent Law is necessary.