Intellectual property (IP) theft in China isn’t just a civil issue—it’s a criminal offense. For foreign businesses operating in or with Chinese partners, understanding how to trigger criminal enforcement is critical. This guide breaks down China’s legal framework, evidence requirements, and step-by-step reporting protocols.
Why Criminal Enforcement Matters
China’s Supreme Court reported 28,000+ IP infringement cases in 2023, with foreign entities involved in 17% of criminal prosecutions. Criminal actions yield faster results:
- 92% conviction rate for IP crimes (National IP Administration, 2023)
- Average 4-month case resolution vs. 18+ months in civil suits
- Cross-border evidence gathering enabled by police powers
3-Step Reporting Process
1. Evidence Collection
Gather:
- Forensic proof: Tamper-proof sales records, server logs
- Chain of custody: Notarized evidence (use China Biz Insight’s IP verification services for court-admissible documentation)
- Loss calculations: Certified financial reports showing damages
Example: A German machinery firm won a 2023 trade secret case by submitting factory blueprints with timestamped digital fingerprints.
2. Police Reporting
Submit to the Economic Crime Investigation Department (ECID). Required documents:
1. Complaint letter (Chinese/notarized translation)
2. Business license + IP registration certificates
3. Evidence dossier (digital + physical copies)
4. Suspect details (if known)
Timeline: ECID must decide within 7 days whether to file a case (Article 172, Criminal Procedure Law).
3. **Post-Filing Actions
- Demand case number: Required for tracking
- Assign liaison officer: Coordinate evidence supplements
- Monitor public security bulletin: Case updates published quarterly
Critical Considerations
- Anonymous reports accepted but reduce prosecution chances by 40%
- Counterfeit thresholds: Minimum 50,000 RMB (≈$7,000) in damages
- Retaliation protection: Whistleblower identities remain sealed
Recent Enforcement Trends
China’s 2023-2024 “Kunlun”专项行动 targeted:
- E-commerce counterfeit rings (2,100+ arrests in Zhejiang)
- Industrial espionage (83 foreign-involved cases in Guangdong)
- 3D-printing piracy hubs (Shanghai/Beijing raids)
Partner with Local Experts
Navigating China’s PSB (Public Security Bureau) requires:
- Native-language case preparation
- Knowledge of provincial enforcement variations
- Post-investigation civil claim coordination
For comprehensive IP due diligence, explore our China Business Intelligence Reports, which include trademark registrations, patent validity checks, and litigation history.