Protecting foreign copyright in China: how is compensation for damages calculated?
SAP SE (the Plaintiff), founded in 1972 and headquartered in Walldorf, Germany, is the largest provider of enterprise management and collaborative commercial solutions in the world. SAP SE compiled a series of textbooks corresponding to modules of software that explain interfaces and terms. SAP SE holds the copyright to the software as well as the textbooks for training. Chinese enterprise, Langze, offered training sessions on modules of SAP software on a large scale. In March 2015, on behalf of SAP SE, KWM filed a lawsuit against Langze and others with the Shanghai IP Court. When SAP SE went all out to provide evidence, and in the absence of evidence to the contrary from Langze, it was exactly based on this principle of full compensation that the colliagiate bench accepted reasonable evidence from SAP SE and went beyond the statutory ceiling. By doing so, it both recognized the value of the copyright holder’s work and effectively deterred Langze from further infringement – a perfect show of muscle by IPR protection authorities. After the case was closed, many other training institutions that infringed upon SAP SE’s copyrights ceased their infringements, a demonstration of the exemplary power of this case. Shanghai IP Court’s effort to protect foreign copyright holder’s rights in this case was also commended by SAP SE’s executives and international counterparts.