On July 23, 2026, China has unveiled a comprehensive revision to its regulations on the protection of integrated circuit (IC) layout designs, aiming to strengthen intellectual property rights (IPR) in the semiconductor sector and encourage technological self-reliance. The newly revised Regulations on the Protection of Integrated Circuit Layout Designs will take effect on October 15, 2026. The updated framework, which amends the original 2001 version, comes at a time when China is accelerating its push for indigenous innovation in the face of global semiconductor supply chain challenges.
The regulations consist of six chapters covering general principles, exclusive rights, registration procedures, exercise of rights, legal liabilities, and supplementary provisions. Key structural updates include the addition of an “originality declaration” requirement for registration applicants, expanded protection scope for emerging technologies, strengthened enforcement mechanisms including punitive damages, and new provisions promoting the commercialization of layout designs.
Major changes from the 2001 version are listed below:
Expanded Protection Scope: For the first time, the revised regulations explicitly extend legal protection to integrated circuits with photonic and quantum functions, reflecting the technological evolution beyond traditional semiconductor chips.
Originality Declaration Mandate: Applicants must now submit a formal originality declaration specifying the creative portions of their layout design, along with reproductions or drawings that clearly display these parts. This addresses the previous difficulty of determining protection boundaries during disputes.
Enhanced Penalties: The revised rules introduce punitive damages for willful infringement, allowing courts to impose compensation ranging from one to five times the determined amount of actual losses or infringer profits in serious cases.
Improved Registration Procedures: New provisions regulate application integrity, clarify rejection and cancellation grounds, and add rights restoration procedures for parties who miss deadlines due to force majeure or other legitimate reasons.
Promotion of Commercial Application: The regulations now require authorities to strengthen public services for layout design utilization and mandate that legal entities provide reasonable rewards and compensation to eligible creators for employment-created layout designs.
The updated framework represents a significant step in aligning China’s intellectual property protection with technological advancements in the semiconductor industry while providing clearer rights boundaries and stronger enforcement mechanisms. For European stakeholders, the revision offers both clearer legal certainty and higher compliance hurdles. Broader protection for emerging technologies benefits innovators, while punitive damages and stricter filing requirements call for more careful IP management and application preparation. Existing registrations should be reviewed promptly to adapt to the new rules.
Source: https://www.gov.cn/zhengce/content/202608/content_7077398.htm
