Statutory and punitive damages In China, the amount of damages awarded by a people's court to compensate the prejudice caused by the infringement of an IP right is calculated according to a method which is the same in all of the IP laws (ie, the Trademark Law, the Patent Law, the Anti-unfair Competition Law, the New Plant Varieties Law and the Copyright Law). Plaintiffs must prove the amount of prejudice by applying this calculation method. They may: base such a calculation on: their losses; the amount of illegal gains obtained by the infringer from the infringement; or a "reasonable" level of the royalties that would have been paid if the infringer had obtained authorisation to use the IP right; or