China has revised regulations protecting integrated-circuit layout designs to tighten registration standards and allow punitive damages for serious infringement. The updated rules require applicants to demonstrate that filings result from genuine creative activity and to submit declarations of originality.
Under the new framework, organizations leading the creation of chip designs are required to provide eligible personnel with reasonable rewards and remuneration. Damage calculations for infringement can now be based on either the losses suffered by the rights holder or the gains made by the infringer.
The Chinese Justice Ministry and the China National Intellectual Property Administration announced the regulations in a document published by Xinhua on August 3. Chinese Premier Li Qiang signed the revised regulations on July 23, and they are set to take effect on October 15.
The regulations reflect the strategic importance Beijing assigns to technology developed by Chinese companies, though they do not constitute export controls. This follows reports from the Financial Times last month stating that Chinese policymakers have considered measures to prevent strategically important domestic technologies from being transferred overseas or acquired by foreign companies.
The move comes as China's semiconductor industry has accelerated efforts to develop domestic alternatives following US restrictions on advanced semiconductor-design software and manufacturing equipment.
