China has introduced updated regulations to strengthen the protection of integrated circuit layout designs, reinforcing intellectual property rights for domestic semiconductor technology. The revised framework introduces stricter registration requirements and allows courts to impose punitive damages in cases of serious infringement, highlighting Beijing’s growing focus on protecting homegrown chip innovation.
The new regulations, approved by Premier Li Qiang on July 23, are scheduled to take effect on October 15, according to a joint announcement from the Justice Ministry and the China National Intellectual Property Administration published by state media on Monday.
Integrated circuit layout designs define the physical arrangement of components within a semiconductor chip. These layouts often represent years of engineering expertise and play a critical role in chip development, even for companies that focus solely on design rather than manufacturing.
Although the updated rules do not introduce export restrictions, they underscore China's increasing emphasis on securing strategically valuable technologies developed by domestic firms. The changes come as the country continues to strengthen its semiconductor industry amid ongoing technology-related restrictions imposed by the United States.
Recent reports have suggested that Chinese policymakers are also exploring broader measures to prevent key domestic technologies from being transferred abroad or acquired by foreign companies. Such proposals could reportedly include tighter oversight of advanced chips produced overseas using Chinese-developed designs.
Under the revised regulations, applicants seeking protection for chip layouts must demonstrate that their designs are the result of original creative work. They will also be required to submit declarations confirming originality and clearly identify which elements of their submissions are unique.
Authorities will have greater authority to reject applications that fail to meet these standards, while the updated rules provide stronger legal grounds for challenging registrations that should not have been approved.
According to Alfredo Montufar-Helu, Managing Director at Ankura China Advisors in Beijing, the stricter originality requirements and tougher registration standards are intended to reduce low-quality or bad-faith filings while ensuring that companies with genuine technological capabilities receive stronger protection.
The revised framework also expands legal remedies for intellectual property violations. Compensation may now be based on either the financial losses suffered by the rights holder or the profits earned by the infringing party, with courts empowered to award punitive damages in particularly serious cases.
In addition, the regulations clarify the legal procedures governing the licensing, transfer, and use of chip layout design rights as collateral. Organizations responsible for developing these technologies will also be required to provide fair rewards and compensation to individuals who contribute to their creation.