CHINA Law and Practice Contributed by: Chuanhong Long, Huiqing Wang, Yingying Shen and Fan Li, CCPIT Patent and Trademark Law Office
the aggrieved party for their actual losses or to dis- gorge the infringer’s unlawful profits. To enforce this limitation and avoid overcompensa- tion – particularly in complex, multi-component prod- ucts – courts increasingly apply the concept of an “IP contribution rate”. This metric isolates the specific economic value that the infringed IP adds to the prod- uct’s overall profit. Because a product’s total profit is generated by a combination of multiple IP rights, unpatented technologies, manufacturing capabilities, and marketing efforts, the theoretical sum of the con- tribution rates for all IP embodied in a single product will always be less than 100%. 8.7 International and Cross-Border Considerations Among critical considerations in modern cross-border IP litigation, one recent development in China is the Regulations on the Settlement of Foreign-Related Intellectual Property Disputes, promulgated by Chi- na’s State Council in 2025.
This Regulation represents China’s strategic response to the increasing complexity of global IP conflicts amid the country’s expanding international business pres- ence. The framework provides Chinese enterprises and authorities with stronger tools to navigate cross- border IP challenges while asserting China’s position in international IP governance. The Regulations are structured around two primary pillars: the provision of co-ordinated services and sup- port for cross-border disputes, and the establishment of rules, countermeasures, and legal frameworks gov- erning such disputes. One example concerns the disclosure of evidence for overseas IP litigation and investigations. According to the Regulation, when companies need to provide evidence or related materials to foreign countries in overseas IP litigation or investigations, they must con- duct compliance checks covering various laws relat- ing to state secrets, data security, personal informa- tion protection, technology export management, and judicial assistance.
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