Do compensation in intellectual property protection cases need to be taxed?

In terms of civil compensation, according to the Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on Several Policy Issues concerning Business Tax (Caishui [2003] 16), when units and individuals provide taxable services, transfer intangible assets and sell real estate, the compensation income obtained from the transferee due to the transferee's breach of contract should be incorporated into the turnover to collect business tax. Therefore, the compensation for losses obtained by the parties in providing taxable services, transferring intangible assets or selling real estate shall be calculated and collected in accordance with the provisions of business tax, and enterprise income tax (or personal income tax) shall be calculated and paid according to law.