On April 24, 2025, the Supreme People's Court (SPC) and the Supreme People's Procuratorate (SPP) of China released the “Interpretation on Several Issues Concerning the Application of Law in Handling Criminal Cases of IP Infringement” (hereinafter referred to as the “Interpretation”), which is set to take effect on April 26, 2025. The Interpretation not only addresses the growing complexity and technological sophistication of IP-related crimes but also marks a milestone in the further enhancement and modernization of China’s IP criminal protection framework.

This judicial interpretation targets the current trends of IP crimes becoming more novel, complex, and technologically advanced. It provides a comprehensive systematic explanation of the identification of relevant criminal acts, in conjunction with the amendments concerning IP-related crimes introduced in the 2021 Amendment (XI) to the Criminal Law. As early as January 2023, the SPC and SPP had issued a draft for public comment, seeking extensive feedback from society. After two years of deliberation and refinement, this highly anticipated judicial interpretation has finally come to fruition.

Comprising 31 articles, the Interpretation is divided into five sections: criminal offenses related to trademarks, counterfeiting patents, copyright and trade secret, and provisions addressing general issues concerning IP-related crimes. It directly addresses key disputed issues in the field of IP. The core highlights of the Interpretation include:

I. Criminal Offenses related to Trademarks

This part is the focal point of the Interpretation, providing further clarification on contentious standards for recognizing "identical goods or services," "identical trademarks," and "registered trademark symbols", which were often disputed in judicial practice. Under the Interpretation, infringements involving identical “services” are clearly included in the scope of criminal offenses related to trademarks, rather than being limited to physical “goods.” Compared to the public consultation draft, the Interpretation further refines comparison criteria, stipulating that “comparisons should be made between the goods and services specified in the trademark registration and those actually produced, sold, or provided by the infringer”. Additionally, it lowers the threshold for "serious circumstances" in IP-related crimes concerning identical services from illegal gains of CNY 100,000 to CNY 50,000, significantly intensifying enforcement measures. It also adds new criminal thresholds for counterfeiting registered service trademarks and separately establishes varying standards for “goods” and “services,” reflecting judicial precision.

II. Criminal Offenses related to Counterfeiting Patents

The Interpretation further refines the specific scenarios of "counterfeiting others' patents," while lowering the thresholds for criminal liability in certain situations. For instance, illegal gains from a single counterfeit patent reaching CNY 100,000 or illegal business amounts reaching CNY 200,000 can constitute a crime. If two or more patents are counterfeited, or if the offender repeats the offense within two years after receiving criminal or administrative penalties, the threshold for criminal liability is further reduced. Moreover, if the actions directly cause economic losses to the patent holder exceeding CNY 300,000, this also constitutes a criminal offense, demonstrating targeted and practical significance.

III. Criminal Offenses related to Copyright

In the field of copyright, the Interpretation provides more precise definitions for key terms such as “without authorization” and “reproduction and distribution.” It also expands the scope of the crime of selling infringing reproductions, incorporating "sales amount," "value of goods," and "number of infringing copies sold" into the criteria for criminality. This ensures a more comprehensive judicial approach to combating copyright infringement.

IV. Criminal Offenses related to Trade Secret

The Interpretation refines the specific standards for recognizing "improper means" and introduces the new standard for "electronic intrusion," defined as "acts of obtaining trade secrets through unauthorized or unauthorized access to computer information systems or similar methods." It also provides detailed provisions on the determination of "serious circumstances" in trade secret crimes, the calculation of loss amounts, and the illegal gains involved. These practical and actionable guidelines offer an efficient framework for the application of law in practice.

V. Provisions addressing General Issues concerning IP-related Crimes

Regarding general issues in IP-related crimes, the Interpretation establishes specific standards in areas such as joint crimes, aggravating and mitigating circumstances, fines, corporate crimes, confiscation and destruction, as well as the specific rules for determining illegal business amounts, illegal gains, and sales amounts. Notably, compared to the draft for public comment, the Interpretation includes the following adjustments:

1. The upper limit for fines in IP-related crimes has been raised from "five times" the illegal gains, as proposed in the draft, to "ten times." This adjustment underscores the firm stance and determination of China's judiciary to comprehensively strengthen IP protection.
2. Specific scenarios for joint crimes have been newly added, explicitly listing actions such as “providing internet access, server hosting, network storage, communication transmission, and other forms of technical support" as constituting joint criminal liability.

The introduction of this judicial interpretation represents a pivotal step in addressing the growing complexity and specialization of IP crimes in China. It signifies a shift towards a more standardized and efficient criminal protection framework for IP rights. With its systematic and forward-thinking provisions, the Interpretation delivers a stronger legal foundation for protecting IP through criminal law.