Punitive fines for IPR violations are set too low, argue legal scholars and corporate managers in an article published in Yicai.

Trademark Law set compensation at 3 million in a 2012 amendment, while the amount ranges from 100,000 to 5 million in the 2015 amendment draft of Patent Law amendment draft released in 2015, says China Business News. Such levels do not reflect the real value of IP for hi-tech companies, says Song Liuping 宋柳平 Huawei deputy CEO, and are far below that needed to inspire innovation.

Due to dismal IPR violation compensation rates, patent litigators are also heavily undervalued, with services usually priced in the thousands of RMB per patent, says He Jing 何菁 Anjie Law Firm senior consultant.