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China Tightens Legal Protections for Chip Layout Designs

The rules raise originality and registration tests, expand damages and licensing rules, signaling Beijing's push to secure domestic chip know‑how.

Overview

  • China finalized revised regulations for integrated‑circuit layout designs that Premier Li Qiang signed on July 23 and that take effect on October 15, 2026.
  • The rules force applicants to prove independent development and to declare which parts of a layout are original so regulators can reject weak or copied filings.
  • Courts may award damages based on rights‑holder losses or an infringer's gains and may impose punitive damages in serious cases to strengthen enforcement.
  • The regulations clarify how layout rights can be licensed, transferred or used as collateral and require creators' organisations to pay eligible personnel reasonable rewards.
  • The move follows U.S. curbs on advanced design tools and equipment and is meant to protect and foster domestic chip design capacity while avoiding formal export controls.