The Analysis Of Punitive Damages In The Anti-Unfair Competition

Unlike the traditional companies,the competition among new type of Internet industry has the characteristic of high covert and low cost of illegal,some Internet companies take illegal acts to suppress competitors for substantial profits and enlarge the influence in the market.As there is unclear rule in our law for the China’s Anti-Unfair Competition on the Internet,high litigation costs,difficult burden of proof and poor supervision,so the phenomenon of malicious tort and repeated infringement are never stopped.In this article,I’m going to take the example of Tencent VS Qihoo 360 to analyze the defects of compensation system in China’s Anti-Unfair Competition Law,and propose the punitive compensation,which is based on compensatory compensation,multiplied by the factor vary from two to the reciprocal of the possibilities,which of the exercise of the right to claim compensation.The judge needs to determine the specific amount by the principle of freedom of evidence,the main consideration include all the loss of the victims,and the offender’s subjective vicious,illegal profits,economic power and other penalties,so that the power can avoid be abused,the role of punishment and containment of punitive compensation can really come true.Finally,it comes to the attribution of compensation.In principle,it should be attributed to the plaintiff,because he paid for struggling with illegal behavior.When the amount is large,it should be appropriate to share with the community.The fundamental purpose of punitive damage is to punish and deter the defendant’s wrongful act,and to protect the public interest and public order,it’s a remedy for damages to the society did and done.So,when there is a huge amount of punitive damages,it should be reasonably distributed between the plaintiff and the society,the part of the society can be used to set up a special fund for compensation for other victims.