As global chip competition intensifies, China has revamped its semiconductor IP regulations with stricter registration requirements and stronger legal protections for original chip designs.
China has unveiled revised regulations to strengthen intellectual property (IP) protection for integrated circuit (IC) layout designs, a move aimed at safeguarding domestic semiconductor innovation as the country continues to build self-reliance in advanced chip technologies.
The updated regulations, signed by Premier Li Qiang on July 23, will take effect on October 15. Announced by the ministry of justice and the China national intellectual property administration, the rules introduce stricter standards for registering IC layout designs and tougher penalties for infringement.
IC layout designs define how components are arranged within a semiconductor chip and represent significant engineering effort. They are considered valuable intellectual property, particularly for fabless chip design companies that develop chips without owning manufacturing facilities.
Under the revised framework, applicants must demonstrate that their designs are the result of genuine creative work. They will be required to submit declarations confirming originality and clearly identify the innovative elements in their applications. Authorities will also have greater powers to reject filings that fail to meet these requirements and invalidate registrations obtained through improper means.
The regulations further strengthen enforcement by allowing damages to be calculated based on either the financial losses suffered by the rights holder or the profits gained by the infringer. Courts will also be able to award punitive damages in cases involving serious violations.
In addition, the new rules clarify procedures for licensing, transferring, and using IC layout design rights as collateral. Organisations leading the development of such designs must also provide reasonable rewards or remuneration to employees who contribute to their creation.
The changes come as China accelerates efforts to develop indigenous semiconductor technologies following U.S. restrictions on advanced chip design software and manufacturing equipment. Although the revised regulations do not introduce export controls, they reflect Beijing’s growing focus on protecting strategically important semiconductor know-how and encouraging original innovation within its domestic chip industry.
