China revises IC layout-design protection rules for first time in 25 years

Amid intensifying competition in the global semiconductor industry, China has revised its regulations on the protection of integrated circuit (IC) layout designs for the first time in 25 years, with the updated rules set to take effect Oct. 15.

Premier Li Qiang signed and promulgated the revised regulations, Chinese state media including Xinhua and the Global Times reported Monday.

The revised regulations aim to protect exclusive rights over IC layout designs while encouraging innovation in integrated circuit technology and promoting the advancement of science and technology.

Officials from China's Ministry of Justice and the National Intellectual Property Administration said the original regulations, promulgated in 2001, needed to be updated to keep pace with developments in technology and industry. They said the revised rules improve the systems governing the registration, protection and administration of IC layout designs.

According to Xinhua, the regulations clarify overall requirements, broaden the scope of protection and emphasize the principle of good faith. They also streamline application and review procedures, tighten rules against fraudulent applications, detail document submission requirements and introduce procedures for the restoration of rights.

The regulations strengthen the protection of exclusive rights by clarifying the standards for determining the scope of those rights, and allow for punitive damages in cases where infringement is deemed serious.

Li Shunde, a researcher at the Institute of Law under the Chinese Academy of Social Sciences, told Pengpai that a newly added "originality declaration" system is a defining feature of the revised regulations.

Li said originality is a substantive requirement for legal protection of IC layout designs, and that applicants must now submit relevant documentation when applying to register a layout design.

The researcher said the originality declaration puts the abstract standard for assessing originality into documented form that can be examined and verified, and will serve as key legal evidence in determining whether a layout design meets the originality threshold.

The Global Times noted that the revision comes as China works to strengthen its domestic semiconductor industry and bolster intellectual property protections for emerging industries.

Industry analyst Ma Jihua said IC layout designs have long existed in a "gray zone between patent and copyright protection," with rights loosely defined, infringement evidence difficult to collect and compensation amounts historically low.

He said that as China's chip design capabilities draw closer to the global leaders, stronger rights protection is becoming increasingly important, and that the revised regulations will help protect intellectual property and research and development investment in China's semiconductor sector. He added that the rules could also provide a legal basis in the event of international disputes.

China's Ministry of Industry and Information Technology separately announced that the country's IC exports in the first half of this year surged 88.7 percent year-on-year, driven by rising semiconductor demand amid the global AI boom.