In China, Patent Injunctions Are Common—and Confer Powerful Leverage

RPX data show that while damages in Chinese patent litigation are low compared to the US, the rate at which permanent injunctions are issued is quite high. When the plaintiff prevails (either outright or in a mixed-outcome judgment), an injunction is issued more than 90% of the time. Furthermore, although the factors that must be established for an injunction are similar to those in the US, they appear to be applied much more liberally in China.

Moreover, injunctions issued by Chinese courts do not merely prevent the domestic practice of a patent—they can also block the export of patented articles. A plaintiff can thus gain significant leverage by threatening to disrupt a defendant’s ability to ship its own China-manufactured products, or critical components, out of the country.