China strengthens IP protection on integrated circuit layout design

China has introduced a revised regulation concerning integrated circuit layout design, aimed at safeguarding exclusive design rights, fostering innovation, and promoting scientific and technological progress.

This 54-article regulation, approved and released by the State Council, emphasizes the importance of intellectual property protection for integrated circuit layouts and calls for enhanced creation, application, management, and services in this area. The updated regulation is set to take effect on Oct 15.

Integrated circuit layout design refers to the "blueprint" of a microchip, detailing the precise arrangement and connections of thousands of tiny electronic components on a semiconductor wafer. In Chinese law, this layout design is recognized as a distinct category of intellectual property rights, alongside patents and copyrights.

The revised regulation streamlines the procedures for applying for and reviewing integrated circuit layout designs. It also clarifies that compensation should increase if these special rights are violated.

It specifies that damages for integrated circuit layout design infringement will be calculated based on the actual losses of the rights holder or the illegal profits of the infringer. In cases of willful and serious infringement, punitive damages of up to five times the calculated amount may be awarded.