China revises IC layout design protection rules, introduces punitive damages

Published Aug 3, 10:40 AM UTC

China has revised regulations protecting integrated-circuit layout designs, tightening registration standards and allowing punitive damages for serious infringement. The revised regulations, signed by Premier Li Qiang on July 23, will take effect on October 15. The rules cover detailed layouts that determine how components are arranged within a chip, reflecting substantial engineering work central to semiconductor development. The measures do not amount to export controls but reflect Beijing's greater strategic importance on technology developed by Chinese companies. The revisions come as China's semiconductor industry accelerates efforts to develop domestic alternatives after successive US restrictions limited access to advanced semiconductor-design software and manufacturing equipment. Applicants must show filings result from genuine creative activity, submit declarations of originality, and clearly identify original elements. Regulators can reject applications that fail to meet requirements, and courts can award punitive damages in serious cases. The rules also clarify how layout-design rights can be licensed, transferred, or used as collateral.