Determining the Calculation Period for Patent Infringement Damages

WISECODE Take

This news highlights the complexity of determining the calculation period for patent infringement damages, a point where many business owners might mistakenly assume courts automatically cover all infringement periods once a lawsuit is filed. From a financial investment perspective, a patent holder is like an investor who must precisely calculate every "investment loss" to secure their rightful "return." In this case, although a Swiss company filed a lawsuit on June 18, 2015, seeking 230 million RMB in damages, the Supreme People's Court ultimately ruled on January 26, 2024, that three affiliated companies must jointly pay 19 million RMB in economic losses, underscoring the critical importance of defining the claim period. For business owners, this means that failure to clearly and continuously assert the damages calculation period may result in some infringement losses not being compensated, much like an investor failing to report all losses in time. While the final compensation in this case was increased from 14 million RMB at first instance to 19 million RMB, partly due to the infringers' bad faith in obstructing evidence, it also reminds patent holders to actively collect evidence and clearly define their litigation requests. First, companies should establish a robust infringement monitoring mechanism, initiating evidence preservation immediately upon discovery of infringement, such as the Swiss company's multiple notarized evidence collections between July 1, 2013, and July 7, 2015. Second, when filing a lawsuit, it is crucial to communicate thoroughly with legal counsel to clearly and comprehensively assert the damages calculation period, also considering ongoing infringement during the litigation. Patent enforcement is a long battle; precise strategy and continuous action are essential to securing the value of intellectual property investment. Zhidian's patent portfolio health check service can assist companies in assessing risks, and we recommend consulting for evaluation.