(Beijing, February,28) “IP violations must have tangible consequences for the infringer," Beate Schmidt, President of the German Federal Patent Court, stressed the importance of IP protection in an interview with a Chinese news media recently.

"Since the People's Republic of China started to establish its own system of industrial property protection in the 1980s, there has been a very rapid development indeed," said Schmidt. In her eyes, today, the China National Intellectual Property Administration (CNIPA) has become the largest IP Office in the world, ranking among the top destinations for IP applications. With such pace, the growth will be expected over the next few years.

"In recent years, China has made great and successful efforts to improve IP protection by revising and updating its legislation. The existing legal provisions follow international standards and they cover all relevant areas of Intellectual Property to the extent necessary," said Schmidt. In her view, legislation alone cannot guarantee the effective protection of IPRs. Without a functioning system to enforce those rights successfully against infringers, there is no real protection. There has to be an adequate compensation for the losses and disadvantages caused by an infringement. At the same time, the infringer has to be prevented from keeping his illegally obtained profits.

"In recent years, China has made great and successful efforts to improve IP protection. These efforts were flanked by the reorganization of the National Intellectual Property Administration and by the establishment of specialized IP courts – with the establishment of the IP Court within the Supreme People's Court in 2019 as a climax. I know from many conversations with judges, that these courts deal with an overwhelming number of cases," said Schmidt.

"No other country embraced the idea of IP protection and its importance for economic development so quickly and consequently as China did. Of course, it takes time and effort to implement such a new concept and raise awareness for it across the country," added Schmidt.

"Although China in recent years has intensified its fight against product piracy and counterfeit goods, the challenge to stop IP infringements remains a constant challenge in future," said Schmidt. She thought that IP management and enforcement are keys to protect IP and crack down upon infringements. In parallel, reasonably calculated punitive damages might be a feasible solution as well, especially when it is necessary to deal with a great number of cases with a short notice.

(The interview only reflects the personal views of the interviewee, not necessarily suggesting they are the views of the German Federal Patent Court)