China Amends Integrated Circuit Layout Protection Rules, Adds Originality Statement Requirement

China's National People's Congress has approved amendments to the "Regulations on the Protection of Integrated Circuit Layout Designs," which will come into force on October 15, 2026. The revision aims to strengthen intellectual property rights and promote technological innovation in the microelectronics sector.

Key changes to the regulations include a new requirement for applicants to declare the originality of their integrated circuit layout designs. Applications for registration must be based on actual creative activity, and applicants must clearly demonstrate the unique aspects of the design. If a registration is later found to be non-compliant, it can be revoked, with the exclusive rights deemed non-existent from the outset. The regulations also introduce provisions for the restoration of rights for parties who miss deadlines due to force majeure or other valid reasons.

Protection is enhanced through clearer definitions of rights and compensation. In cases of infringement, compensation will be determined based on the right holder's actual losses or the infringer's profits. If these are difficult to ascertain, compensation will be reasonably determined by reference to multiple times the license fee. In severe cases, punitive damages may apply. The originality statement can be used to clarify the design's unique contribution.

Furthermore, the revision aims to promote the utilization and commercialization of layout designs. Relevant government departments are instructed to enhance public services and encourage the adoption of these designs. The regulations also refine requirements for the transfer, licensing, and pledging of layout designs, and clarify the exercise of rights by joint owners and the distribution of licensing fees among them.