Trademark infringement case: How much damages can be requested? How to calculate? Professional intellectual property rights lawyers explain to you the damages for trademark infringement!

In trademark infringement cases, the amount of damages is of great concern to the trademark owner. According to the relevant provisions of the Trademark Law and judicial practice experience, the request and calculation of damages mainly depend on the nature and scope of the infringement and the actual impact on the right holder. The following are the core methods and related considerations for calculating damages:

How damages are calculated

The Trademark Law provides the following main calculation methods, and the right holder can choose the most advantageous plan:

1. Actual amount of damages
   Direct economic losses suffered by rights holders due to infringement, including reduced sales, damage to goodwill, etc. For example, if a brand's sales volume decreases or its market share is diluted due to infringement, the corresponding amount can be calculated.
2. Benefits gained by the infringer
   The amount of compensation shall be based on the illegal gains obtained by the infringer due to trademark infringement. The court will make calculations based on the number of products sold by the infringer, profit margin and other data, and require it to return its illegal gains.
3. License multiple
   If it is difficult to prove actual losses or profits from infringement, the rights holder may request compensation based on the trademark licensing rate under normal market conditions, and may request a certain multiple (usually 1 to 3 times).
4. Statutory compensation amount
   When the above methods cannot be calculated or proven, the court may award statutory compensation at the request of the right holder, with the upper limit of the amount generally being NT$5 million (in accordance with Article 97 of the Trademark Law).

importance of evidence

The amount of damages depends on the sufficiency of the evidence. Rights holders should collect relevant information as soon as possible, including but not limited to:

• Market prices and sales data of infringing goods;
• Historical information on trademark authorization or market conditions of similar authorizations;
• Invoices, contracts, etc. related to the infringer's transactions.

In addition, if the rights holder can prove that the infringement is malicious (such as continued infringement, counterfeiting of famous brands, etc.), the court may award a higher amount of compensation to achieve a punitive effect.

Difficulties and Strategies in Practical Operations

1. Determine the scope of infringement
   In many cases, the infringer may conceal the actual sales volume, and the rights holder needs to apply for a court order to obtain the infringer's financial information to accurately assess the scope of the damage.
2. Possibility of reconciliation between the parties
   In order to avoid the waste of time and money caused by long-term litigation, many trademark infringement cases choose to settle during the litigation process. The settlement amount is usually between the infringer’s expected gains and the rights holder’s estimated losses.
3. Special considerations in international infringement cases
   In cases involving cross-border trademark infringement, rights holders need to make requests based on the legal and economic standards of different regions and consider the actual implementation of law enforcement in each region.

Conclusion

Claims for damages in trademark infringement cases need to be supported by legal provisions and evidence, and the rights holder needs to choose the most advantageous calculation method based on the specific circumstances of the case. At the same time, professional lawyers should be hired to assist in the process to ensure the integrity of the evidence and the legality of the requested amount, so as to obtain the highest compensation amount and effectively curb the occurrence of infringement.

Further reading:What should I do if a trademark infringement occurs? Legal measures that can be taken.

Further reading:What are business secrets? Three major legal requirements for business secrets.

Further reading:What should I do if an employee takes away company confidential information? Relevant provisions of the Trade Secrets Act.

Fuda Law Firm, composed of a team of lawyers, patent attorneys and patent engineering teams who specialize in patents and trademarks. They specialize in the field of intellectual property law. The team lawyer members all have rich practical experience and long-term experience in serving listed companies and small and medium-sized enterprises, and can provide assistance. . If you have any needs, you can contact our firm at any time.

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