China has published the first systematic revision of its Regulations on the Protection of Layout Designs of Integrated Circuits since 2001. Adopted at the State Council's 91st executive meeting on July 10, promulgated July 23 and published Aug 3, the rules take effect on October 15, 2026.

The most striking change: layout designs for "integrated circuits that integrate photonic, quantum, or other functions" are now explicitly protectable. CNIPA commentary notes that optoelectronic, silicon-photonic and quantum chips extend beyond single-electronic-signal processing, and that registration filings for such designs have risen since 2022, with volume observed after 2024.

Enforcement is being strengthened. Any person can now request revocation of a registration that does not comply with the rules — a procedure comparable to patent invalidation — and a revoked right "is deemed never to have existed." Courts may award punitive damages of one to five times the calculated amount for willful infringement with serious circumstances; otherwise damages are based on the right holder's losses, the infringer's gains, or a multiple of the license fee.

New good-faith and abuse provisions state that exclusive rights must not be used to harm state interests, public interest or others' lawful rights, with monopoly conduct handled under the Anti-Monopoly Law. Applicants must submit a declaration of originality identifying the design's original areas and functions, and entities commercially exploiting employee-created designs owe designers rewards of at least 50% of net income from transfer or licensing.

Reuters notes the revision arrives as Beijing seeks to better safeguard domestic chip know-how amid the intensifying US-China technology race — the tighter standards and punitive damages signaling China's intent to defend chip intellectual property as semiconductors become a strategic battleground.

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