Keyword Advertising Triggers Triple Punitive Damages

In this report, Shaohe Law Firm analyzes the growing risks posed by keyword advertising that misuses competitors’ trademarks to divert online traffic. Such practices, increasingly common on major search engines, can mislead consumers, dilute brand distinctiveness, and unfairly exploit the goodwill of well-known trademarks.

Drawing on a recent case successfully handled by Shaohe Law Firm, the report highlights how Chinese courts are responding to these practices under the latest legal framework, including the amended Anti-Unfair Competition Law. The case resulted in a favorable first-instance judgment, significant compensation, and the application of punitive damages, reinforcing strong judicial protection for trademark owners.

The report further outlines Shaohe Law Firm’s practical enforcement approach, covering rights assessment, evidence preservation, administrative action, and civil litigation—offering valuable guidance for enterprises facing similar online brand protection challenges.

The full report is available for download here, providing deeper insights into the case background, legal analysis, and enforcement strategy. The report is available in English, German, French and Chinese.