China has issued a revised regulation governing the protection of integrated-circuit layout-designs, updating a framework first introduced in 2001 as semiconductor technology and commercial practices have accelerated. Premier Li Qiang signed the State Council decree, which will take effect on October 15.
The revision is intended to strengthen both protection and practical use of chip layout-designs while improving registration and administration. It also brings established practices into formal regulation and seeks closer alignment with relevant Chinese laws and international treaties.
Applicants will face clearer standards for creative authenticity. Applications must result from genuine creative activity and be free of fraud, an originality declaration will be required, and submitted copies or drawings must identify which elements are original.
The regulation sets procedures for rejecting applications that do not comply with the rules and revoking registrations that were improperly granted. It also creates a route for restoring rights lost because of force majeure or other legitimate circumstances.
Exclusive rights receive a more detailed compensation framework. Damages for infringement will first be calculated from the rights holder's actual losses or the infringer's profits; when neither can be established, an appropriate multiple of the licensing fee will serve as the basis.
Serious infringement may trigger punitive compensation. The provision increases the potential cost of deliberate or grave violations and adds a deterrent layer beyond ordinary recovery of measured losses.
The regulation also addresses commercialization and the position of creators working within organizations. Public authorities must improve services that support use of registered designs, while legal entities and other organizations must provide reasonable rewards and remuneration to eligible personnel who create layout-designs under their direction.
Rules for transferring, licensing and pledging layout-design rights are refined, together with the exercise of jointly owned rights and the distribution of licensing income among co-owners. After October 15, authorities plan to publicize the framework, complete supporting measures and focus on enforcement across the semiconductor intellectual-property system.
