Legal Analysis: Interpretation of the Supreme People's Court and the Supreme People's Procuratorate on Several Issues Concerning the Specific Application of Laws in Handling Criminal Cases of Infringement of Intellectual Property Rights Article 12 The term "illegal business turnover" as mentioned in this interpretation refers to the value of infringing products manufactured, stored, transported and sold by actors in the process of infringing intellectual property rights. The value of the infringing products that have been sold shall be calculated according to the actual selling price. The value of infringing products manufactured, stored, transported and unsold shall be calculated according to the marked price or actual average selling price of the infringing products that have been identified. If the infringing product is not marked or its actual sales price cannot be determined, it shall be calculated according to the intermediate market price of the infringed product. If the infringement of intellectual property rights for many times has not been subject to administrative treatment or criminal punishment, the illegal business amount, illegal income or sales amount shall be calculated cumulatively.

Legal basis: Article 225 of the Criminal Law of People's Republic of China (PRC) violates state regulations and commits the following illegal business operations.

1. Whoever disturbs the market order, if the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also, or shall only, be fined not less than one time but not more than five times the illegal income; If the circumstances are especially serious, he shall be sentenced to fixed-term imprisonment of not less than five years, and shall also be fined not less than one time but not more than five times for illegal gains or confiscation of property:

(a) operating a franchise or monopoly commodity or other commodities whose operation is restricted by laws and administrative regulations without permission;

(2) buying and selling import and export licenses, import and export certificates of origin and other business licenses or approval documents stipulated by laws and administrative regulations;

(three) without the approval of the relevant competent departments of the state, illegally engaged in securities, futures, insurance business, or illegally engaged in fund payment and settlement business;

(four) other illegal business activities that seriously disrupt the market order.