Beijing, Aug 30 (IANS): China's legislature Friday passed a new trademark law to crack down on infringements and ensure a fair market for trademark holders.

The new law raises the compensation ceiling for a trademark infringement to $500,000, six times the previous limit, reports Xinhua.

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 revision was based on comments from lawmakers, experts and representatives of businesses and trademark agencies from China and abroad, said Wang Qing, an official.

Agencies violating the law will face fines. Those involved in serious cases will have their businesses suspended.

The new law also offers protection for renowned trademarks, giving owners the right to ban others from registering their trademarks or using similar ones -- even if such brand names are not registered.

The draft changed clauses regarding the examination period of applications for trademark registration to make it more efficient.

China adopted its trademark law in 1982 and amended it 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 latest official statistics.