Punitive damages generally require malicious infringement, which often causes certain mental damage to the patentee, but punitive damages are not based on the mental damage actually suffered by the victim. Compensation for mental damage is an independent cause of compensation, which can be counted as actual loss alongside material loss, and compensatory compensation can be calculated based on this actual loss. Punitive damages are added to compensatory damages, and a certain amount or proportion of punitive damages are added to compensatory damages, which is punitive damages.
Legal basis: Article 585 of the Civil Code of People's Republic of China (PRC).
The parties may agree that when one party breaches the contract, it shall pay a certain amount of liquidated damages to the other party according to the situation of breach of contract, and may also agree on the calculation method of the amount of compensation for breach of contract. If the agreed liquidated damages are lower than the losses caused, the people's court or arbitration institution may increase the liquidated damages at the request of the parties; If the agreed liquidated damages are excessively higher than the losses caused, the people's court or arbitration institution may appropriately reduce them at the request of the parties. If the parties concerned pay liquidated damages for delayed performance, the breaching party shall also perform the debt after paying the liquidated damages.