What Changed
- Application rules are refined to mandate a declaration of originality, clear indication of original parts in drawings, and prohibition of fraudulent practices.
- Infringement remedies are strengthened to include compensation based on licensing fee multiples when losses/profits are unclear, as well as punitive damages for serious violations.
- Rules on rights transfers, licensing, pledging, co-ownership, and mandatory rewards for employee creators are updated to foster practical application.
Chinese Premier Li Qiang has signed a State Council decree issuing a revised regulation on the protection of layout-designs of integrated circuits (IC). The regulation affects IC designers, technology enterprises, research entities, and organizations involved in creating, transferring, licensing, or pledging layout-design rights in mainland China. According to officials from the Ministry of Justice and the China National Intellectual Property Administration (CNIPA), the revision updates the original regulation introduced in 2001 to adapt to the rapid development of integrated circuit technologies, improve registration and management systems, and align with relevant domestic laws and international treaties. The revised regulation is scheduled to take effect on October 15 of this year.
The revised framework establishes refined application and examination procedures. Applications must be based on genuine creative activities free from fraudulent practices and must include a declaration of originality. Submitted copies or drawings must clearly indicate the original parts. The regulation also sets out procedures for rejecting non-compliant applications, revoking improperly registered designs, and restoring rights lost due to force majeure or other legitimate reasons.
To strengthen exclusive rights protection, infringement compensation will be determined based on actual losses suffered or the infringer's profits. When these figures are difficult to determine, compensation will be reasonably calculated based on a multiple of the licensing fee. Punitive compensation will be applied in cases of serious infringement.
To promote practical application, relevant departments are required to enhance public services, while legal persons or non-legal person organizations must provide reasonable rewards and remuneration to eligible personnel who create layout-designs under their direction. The regulation further refines requirements for rights transfer, licensing, and pledging, alongside regulating rights exercise and fee distribution among co-owners. Following implementation, authorities plan to focus on publicizing rules, improving supporting frameworks, and ensuring enforcement.
Who May Be Affected
Integrated circuit designers, semiconductor enterprises, research institutes, legal persons, and entities transferring, licensing, or pledging layout-design rights in mainland China.
Cross-Border Context
Foreign technology companies and legal entities holding or acquiring integrated circuit layout-designs in mainland China must comply with revised registration, originality declaration, co-ownership, and licensing rules.
What to check next
- Monitor implementing rules and regulatory guidance issued by the China National Intellectual Property Administration (CNIPA).
- Check the published full text of the State Council decree for exact article numbers and effective year.
This article provides general information and does not constitute legal advice. Consult the official text and obtain advice appropriate to your circumstances where needed.
Prepared automatically with AI assistance from the official sources linked on this page. Translations and explanations do not replace the official text.