China issues revised regulation on protection of IC layout-designs

BEIJING, Aug. 3 (Xinhua) -- Chinese Premier Li Qiang has signed a State Council decree issuing a revised regulation on the protection of layout-designs of integrated circuits (IC).

Scheduled to take effect on Oct. 15 this year, the regulation aims to strengthen the protection and application of layout-designs, improve registration and management systems by elevating proven practices into regulations, and align with relevant laws and international treaties.

According to officials from the Ministry of Justice and the China National Intellectual Property Administration, the revision was prompted by the rapid development of integrated circuit technologies and the need to better meet practical demands, thus requiring an update to the original regulation introduced in 2001.

The revised regulation will refine application and examination procedures, stipulating that applications must be based on genuine creative activities free from fraudulent practices. It introduces a requirement for a declaration of originality and clarifies that copies or drawings submitted must clearly indicate the original parts.

It also establishes procedures for rejecting non-compliant applications, revoking improperly registered designs, and restoring rights lost due to force majeure or other legitimate reasons.

The regulation strengthens the protection of exclusive rights, specifying that infringement compensation shall be determined based on actual losses or the infringer's profits. When these are difficult to determine, compensation will be reasonably based on a multiple of the licensing fee.

Punitive compensation will apply in cases of serious infringement.

To promote the application of layout-designs, the regulation requires relevant departments to enhance public services and mandates that legal persons or non-legal person organizations provide reasonable rewards and remuneration to eligible personnel who create layout-designs under their direction.

It also refines the requirements for transfer, licensing and pledging, and regulates the exercise of rights and the distribution of licensing fees among co-owners.

After the regulation takes effect, authorities will focus on publicizing the rules, improving supporting frameworks and ensuring effective enforcement. ■