China tightens chip layout design rules

China has revised regulations protecting integrated-circuit layout designs, tightening registration standards and allowing punitive damages for serious infringement. The revised regulations, signed by Premier Li Qiang on July 23, will take effect on October 15. The changes aim to make it harder to copy chip designs and to secure legal rights over designs developed by others. Applicants must show genuine creative activity, submit declarations of originality, and clearly identify original elements. Regulators can reject applications that fail to meet requirements, and courts can award punitive damages in serious cases. The rules also clarify licensing, transfer, and collateral use of layout-design rights. These measures reflect Beijing's strategic emphasis on domestic chip technology amid U.S. restrictions on access to advanced semiconductor design software and manufacturing equipment. Chinese policymakers have also considered broader measures to prevent strategic technologies from being transferred overseas, according to the Financial Times.