New Chinese rules protect chip designs and strengthen domestic technology position
China has amended its regulations on the protection of layout designs of integrated circuits. The revised rules introduce stricter registration criteria and allow punitive financial sanctions in the event of serious violations.
According to reports from the Ministry of Justice and the China National Intellectual Property Administration, the legislation focuses on the complex placement of components within chips – designs that represent a considerable technical effort and are vital to the semiconductor industry, including for companies that focus solely on design rather than manufacturing.
Although these amendments do not function as export restrictions, they indicate the growing strategic value that China attaches to its own technology. This follows a series of US restrictions on access to high-end manufacturing equipment and design software, which has forced China’s chip sector to prioritise the development of local alternatives.
Moreover, recent reports indicate that Chinese officials are exploring further ways to halt the transfer of critical technology to foreign entities, potentially including a ban on the international production of advanced chips based on proprietary designs.
The new guidelines are intended to prevent plagiarism of technical work and to stop entities from claiming legal rights to designs they did not create themselves.
To obtain registration, applicants must now provide evidence of genuine creative efforts, submit declarations of originality and specifically highlight the unique elements of their design. Authorities now have the power to reject applications that do not meet these criteria, creating a stronger framework for challenging invalid registrations.
In addition, the revised laws strengthen the legal remedies available in cases of intellectual property theft. Damages for infringement can now be determined on the basis of the losses suffered by the victim or the profits made by the infringer, with courts empowered to impose punitive damages in flagrant cases.
The updated framework also provides clearer guidelines for the transfer, licensing and use of layout designs as collateral, while ensuring that the employees involved in creating these designs receive fair compensation and recognition.
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