Beijing is tightening protections for IC layout designs as part of a broader push to shield domestic semiconductor technology from U.S. export controls, signaling a new emphasis on safeguarding strategic chip know-how.

The revised rules raise registration standards, empower punitive damages for serious infringements, and take effect on October 15, with originality declarations and explicit identification of original elements becoming mandatory.

Signed by Premier Li Qiang and published as a State Council decree, the reform aims to make it harder to copy designs and to secure rightful rights, aligning with China’s self-reliance goals.

The regulations create clearer processes for investigating design-right violations and for awarding compensation to losses caused by infringements.

An evidence-disclosure regime allows courts to require infringers to produce financial records, enabling damages to be based on claimed losses or available evidence if records are refused or falsified.

Applicants must prove genuine creative activity, declare originality, and clearly identify original elements, while authorities can reject weak filings and challenge questionable registrations.

Overhauled application and examination procedures impose higher evidentiary standards, including declarations of originality and explicit identification of unique layout elements submitted to the CNIPA.

A new registration regime introduces originality declarations, early rejection authority for obvious lack of originality, and third-party cancellation rights to invalidate fraudulent registrations.

Before October 15, 2026, companies are advised to audit originality declarations, update licensing agreements to meet filing deadlines, assess potential inadvertent infringements, and consider financing options using layout designs as collateral.

The reform emphasizes design resilience and clear co-ownership, licensing, and transfer protocols to facilitate commercialization while reducing theft or leakage risk.

Layout designs can be pledged as collateral, enabling chip designers to secure debt financing with CNIPA-registered portfolios, turning IP into a bankable asset.

MIIT data show strong growth in China’s electronic information manufacturing, providing context for the policy move and its goals.