China’s legislature passed a new trademark law in August to crack down on infringement and ensure a fair market for Chinese and foreign trademark holders. After three readings over the past two years, the revised law was passed at the bimonthly session of the Standing Committee of the National People’s Congress, China’s top legislature. The new law, which will go into effect on May 1st of next year, raises the compensation ceiling for trademark infringement to 3 million yuan (about $500,000), six times of the previous limit.

The law treats Chinese and foreign enterprises equally, said Xu Ruibiao, director of the Trademark Bureau under the State Administration for Industry and Commerce. “Based on the amendments, it will become easier for foreign trademark holders to protect their rights in cases of infringement,” he said.

China adopted its Trademark Law in 1982 and made amendments in 1993 and 2001. As of June this year, China held the world’s largest number of registered trademarks and valid trademark registrations, at 8.17 million and 6.8 million respectively, according to the latest official statistics.