China Counterfeit Trademark Penalties: A Comprehensive Guide for Businesses in 2025
Key Takeaways: Penalties at a Glance
Navigating trademark counterfeiting penalties in China is essential for businesses in 2025. China’s robust legal system imposes administrative, civil, and criminal penalties, but enforcement varies. Here’s a snapshot:
| Penalty Type | Conditions | Penalties |
|---|---|---|
| Administrative (Art. 60) | Illegal business ≥ RMB 50,000 or serious cases | Fine up to 5x revenue, max RMB 250,000 |
| Civil (Art. 63) | Malicious infringement, hard-to-calculate losses | Damages up to RMB 3,000,000, 1-3x multiplier |
| Criminal (Arts. 213-215) | Serious: Business > RMB 50,000, gains > RMB 30,000; More serious: > RMB 250,000/150,000 | Up to 3 years imprisonment/fine; 3-7 years for more serious |
Fun Fact: China accounts for over 80% of global counterfeit goods, a challenge for IP protection (World Trademark Review, 2024).
Introduction to Trademark Counterfeiting in China
What Is Trademark Counterfeiting?
Trademark counterfeiting involves producing or selling goods or services using a fake trademark that mimics a registered one, deceiving consumers and damaging brand integrity. In China, this pervasive issue affects both local and international businesses, necessitating strong protective measures.
Why Counterfeiting Thrives in China
China’s status as the world’s manufacturing powerhouse fuels its counterfeiting problem. Over 80% of global counterfeit goods originate here, costing brands billions annually (World Trademark Review, 2024). The global counterfeit market could hit $1.79 trillion by 2030 (Corsearch). Learn more about safeguarding your brand with our Trademark & Copyright Services.
China’s Response to the Counterfeiting Crisis
China has ramped up its IP efforts, notably with the 2019 Trademark Law amendment, increasing penalties and tackling bad-faith registrations. Yet, enforcement gaps persist. For deeper insights, check our blog post on China Trademark Registration for Foreign Companies. Our expert Peter H. Li specializes in all IP matters, offering tailored advice.
Legal Framework for Trademark Protection in China
The Backbone: Trademark Law
The Trademark Law of the People’s Republic of China, last updated in 2019, is the foundation of trademark protection (WIPO Lex). It covers registration, rights, and penalties, with the 2019 changes boosting damages and curbing misuse. This law is vital for businesses protecting their IP in China.
Supporting Laws: Criminal and Competition
For severe cases, the Criminal Law of the People’s Republic of China (Arts. 213-215) imposes jail time and fines. The Anti-Unfair Competition Law also aids in broader IP enforcement, creating a multi-faceted legal shield. Curious about costs? See our China Trademark Registration Costs Guide.
Future Changes: 2023 Proposals
In 2023, the China National Intellectual Property Administration (CNIPA) proposed Trademark Law updates to strengthen well-known trademark protections and enforce stricter use rules. As of March 2025, these remain under review (Taylor Wessing, 2023). Stay ahead with our Consultation & Litigation Support.
Types of Penalties for Trademark Counterfeiting
Administrative Penalties: Swift and Effective
Per Article 60 of the Trademark Law, the Market Supervision Bureau (MSB) can halt infringement, seize goods, and fine offenders up to 5 times their illegal revenue (if over RMB 50,000) or RMB 250,000 otherwise. This quick action protects brands efficiently.
Civil Penalties: Compensation for Losses
Under Article 63, courts award damages based on losses, infringer profits, or royalties, with a 1-3x multiplier for malicious acts. Statutory damages can reach RMB 3,000,000 when losses are unprovable. Explore litigation options with Tony Xu, our litigation expert.
Criminal Penalties: Severe Consequences
Articles 213-215 of the Criminal Law target serious offenders: up to 3 years imprisonment for business revenue over RMB 50,000 or gains over RMB 30,000; 3-7 years for amounts exceeding RMB 250,000/150,000 (Lehman Law). See our China IP Counsel Guide.
Enforcement Mechanisms: How Laws Are Applied
Administrative Enforcement via MSB
The MSB leads administrative enforcement, raiding counterfeit operations and imposing fines. It’s fast but doesn’t offer compensation. Learn more about enforcement in our Trademark Attorney Guide.
Criminal Enforcement by the PSB
The Public Security Bureau (PSB) handles criminal cases meeting thresholds under Arts. 213-215, delivering jail terms and fines. It’s a powerful deterrent but requires robust evidence. Our Tingfei Wang excels in patent and litigation support.
Civil Litigation in IP Courts
Specialized IP courts in Beijing, Shanghai, and Guangzhou streamline civil cases, offering damages and injunctions. It’s resource-intensive but effective. Visit our Track Records to see our success stats.
Enforcement Challenges and Progress
Inconsistent enforcement due to local biases remains a hurdle, but IP courts and training are improving outcomes (China Briefing). Partner with us at Contact Us for expert help.
Case Study: The POKEMON Counterfeiting Crackdown
A Massive Seizure in Chengdu
In March 2022, Chengdu Shuangliu Airport Customs seized a staggering 1.48 million game cards, 18,000 laser card books, 16,200 commemorative coins, and 72,000 protective cases, all suspected of infringing the POKEMON trademark. This haul showed how bold counterfeiters can be in China.
From Customs to Criminal Action
The case didn’t stop at customs. It was handed over to the Public Security Bureau (PSB) for a criminal investigation, highlighting the teamwork between agencies to enforce Articles 213-215 of the Criminal Law. This bust proves China can crack down hard when evidence is clear (World Trademark Review, 2023).
Lessons for Businesses
This case underscores the value of registering your trademark with customs and monitoring exports. Want to protect your brand like POKEMON? Check our Complete Guide to Trademark Registration in China or consult Peter H. Li, our trademark expert.
Statistics: The Scale of Counterfeiting in China
Annual Case Load
In 2023, China tackled around 40,000 trademark counterfeiting cases through administrative enforcement, based on 29,800 cases in the first nine months (World Trademark Review, 2024). This shows the sheer volume of counterfeiting activity.
Global Impact
China produces over 80% of the world’s counterfeit goods, a dominant share that affects global markets (World Trademark Review, 2024). In FY 2023, over 83% of U.S. Customs seizures by value came from China and Hong Kong (USTR, 2024).
Key Stats Table
| Statistic | Value | Year | Source |
|---|---|---|---|
| Cases Handled | ~40,000 | 2023 | WTR |
| Global Counterfeit Share | 80% | 2024 | WTR |
| U.S. Seizures from China/HK | >83% | FY 2023 | USTR |
See our Track Records for our firm’s IP success stats.
Practical Advice for Businesses
Register Your Trademark
First, register your trademark with the China National Intellectual Property Administration (CNIPA). It’s your legal shield against counterfeiters. Need help? Visit our 2025 Trademark Registration Process Guide.
Monitor and Report
Keep an eye on markets and online platforms like Alibaba. Report fakes using their tools or to the Market Supervision Bureau. Our China Trademark Search Guide can help you spot infringements early.
Engage Legal Experts
Hire pros like our team at Yucheng IP Law. Whether it’s litigation with Tony Xu or strategy with Tingfei Wang, we’ve got you covered. Check Why Choose Us.
People Also Ask: Answers to Common Questions
What Are the Penalties for Counterfeiting?
Fines up to RMB 250,000 (administrative), damages up to RMB 3,000,000 (civil), and up to 7 years in jail (criminal) await counterfeiters under Arts. 60, 63, 213-215 (Lehman Law).
How Does China Enforce Trademark Laws?
Through MSB fines, PSB prosecutions, and court damages. Efficiency varies, but IP courts help (World Trademark Review, 2024). See our Trademark Lawyer Guide.
Counterfeit vs. Parallel Imports?
Counterfeits are fake; parallel imports are real but unauthorized. China often allows the latter (Harris Sliwoski). Read more at Trademark Requirements Guide.
Conclusion: Protect Your Brand Today
Why Action Matters
Trademark counterfeiting in China is a massive challenge, with strict penalties but uneven enforcement. From fines to jail time, the laws are there, yet proactive steps are key to safeguarding your brand in 2025.
Your Next Step with YCIP
At Yucheng IP Law, we’ve filed countless trademarks and served clients globally—see our Representative Clients. Don’t let counterfeiters win. Get a quote now by submitting our Trademark Application Form or contact us for a free consultation!
External Resources
- USPTO China IP Resources – U.S. insights on China IP.
- EUIPO China SME Helpdesk – EU guide for small businesses.
