When a trademark owner encounters trademark infringement, he can file an administrative complaint with the industrial and commercial administration department, file a lawsuit directly in court, or report to the public security agency. If the trademark owner files a complaint with the industrial and commercial administration department, the industrial and commercial administration department will deem the infringement to be established and may order the infringement to cease immediately, confiscate and destroy the infringing goods and tools mainly used to manufacture the infringing goods, and counterfeit the registered trademark, which is illegal. If the business turnover exceeds RMB 50,000, a fine of not more than five times the illegal business turnover may be imposed. If there is no illegal business volume, or if the illegal business volume is less than 50,000 yuan, a fine of not more than 250,000 yuan may be imposed. If there are more than two trademark infringements within five years, or there are other serious circumstances, a heavy fine shall be imposed.

Legal Basis

Article 63 of the Trademark Law

The amount of compensation for infringement of the exclusive right to use a trademark shall be based on the actual damages suffered by the right holder due to the infringement. The loss is determined; if the actual loss is difficult to determine, it can be determined based on the benefits obtained by the infringer due to the infringement; if the loss of the right holder or the benefits obtained by the infringer is difficult to determine, it can be determined reasonably by referring to a multiple of the trademark license fee. For malicious infringement of trademark exclusive rights and the circumstances are serious, the amount of compensation may be determined to be between one time and three times the amount determined according to the above method. The amount of compensation should include the reasonable expenses paid by the right owner to stop the infringement. If it is difficult to determine the actual losses suffered by the right holder due to the infringement, the benefits obtained by the infringer due to the infringement, and the registered trademark license fee, the people's court shall award a compensation of not more than three million yuan based on the circumstances of the infringement.