Integrated Circuit Layout Design Protection Regulations

1. Chapter I General Provisions
2. Chapter II Exclusive Rights in Layout-designs
3. Chapter III Registration of Layout-design
4. Chapter IV Exercise of the Exclusive Rights in Layout-design
5. Chapter V Legal Responsibilities
6. Chapter VI Supplementary Provisions

Chapter I General Provisions
Article 1 With a view to protecting the exclusive right of layout-design of integrated circuits, encouraging the innovation of integrated circuit technology and boosting the development of science and technology, the Regulations are hereby formulated as follows.

Article 2 For the purpose of the Regulations:

1. Integrated circuit means a semi-conductor integrated circuit, namely a product, in an intermediate form or its final form, in which the elements, at least one of which is an active element, and two or more of the interconnections are integrally formed in and/or on a piece of material and which is intended to perform an electronic function;
2. Layout-design of integrated circuits (hereinafter referred to as layout-design) means the three-dimensional disposition of the elements, at least one of which is an active element, and two or more of the interconnections of an integrated circuit, or such a three-dimensional disposition prepared for an integrated circuit for manufacture;
3. Holder of right of layout-design means the natural person who, or the legal entity or any other organisation which, according to the provisions of the Regulations, enjoys the exclusive right in a layout-design;
4. Reproduction means an act to repetitively produce a layout-design or integrated circuit incorporating the layout-design; and
5. Commercial exploitation means an act of importing, selling, or otherwise distributing for commercial purposes a protected layout-design, an integrated circuit incorporating a protected layout-design or an article incorporating an integrated circuit.

Article 3 Any Chinese natural person, legal entity or any other organisation shall, according to the Regulations, enjoys the exclusive right in the layout-design he or it invents.
Any foreign person who, or entity which, first puts his or its layout-design into commercial exploitation in the territory of China, shall, according to the Regulations, enjoys the exclusive right in the layout-design he or it invents.
Any foreign inventor of a layout-design who is from a country which has concluded an agreement on the protection of layout-designs with China or which has acceded, with China, to an international treaty on the protection of layout-design shall, according to the Regulations, enjoys the exclusive right in the layout-design he or it invents.

Article 4 A protected layout-design shall possess originality, namely the layout-design is the product of the intellectual labour of the inventor, and the layout-design is not a standard design generally accepted by the layout-design inventors and integrated circuit manufacturers.
In respect of layout-design of combined standard designs, the combination as a whole shall meet the requirement of the foregoing clause.

Article 5 The layout-design protection under the Regulations shall not cover ideas, procedures, processes or mathematical concepts, etc..

Article 6 The intellectual property administrative authority under the State Council is responsible for the relevant administration of the exclusive rights of layout-designs according to the provisions of the Regulations.

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Chapter II Exclusive Rights in Layout-designs

Article 7 A layout-design holder of right enjoys the following exclusive rights:

1. Reproduction of the whole or any part of an original layout-design under protection; and
2. Putting into commercial exploitation of a protected layout-design, integrated circuit incorporating a layout-design or article incorporating an integrated circuit.

Article 8 The exclusive rights in a layout-design are generated by the registration thereof with the intellectual property administrative authority under the State Council.
Unregistered layout-designs are not protected under the Regulations.

Article 9 The exclusive rights in a layout-design belong to the layout-design inventor unless it is otherwise provided for in the Regulations.
Where a layout-design is the one which is invented under the charge, and according to the will, of a legal entity or any other organisation and for which a legal entity or any other organisation is responsible, the legal entity or the organisation is the inventor.
Where a natural person invents a layout-design, the natural person is the inventor.

Article 10 Where two or more natural persons, legal entities or other organisations have jointly invented a layout-design, the exclusive rights therein are owned according to what is agreed upon by the co-operating persons or parties; where no agreement is reached or the agreement does not clearly specify, the exclusive rights are shared by the co-operating persons or parties.

Article 11 The exclusive rights of a layout-design invented by entrustment are owned according to the agreement concluded between the entrusting and entrusted parties; where no agreement does reached or the agreement is not clearly specify, the exclusive rights are shared by the entrusted party.

Article 12 The duration of protection for layout-design exclusive rights is ten years starting from the date of application for registration of the layout-design or from the date of putting it into commercial exploitation somewhere in the world, whichever is the earlier date. However, a layout-design, whether or not it is registered or put into commercial exploitation, is not protected under the Regulations after fifteen years of its invention.

Article 13 Where a layout-design exclusive rights are owned by a natural person, the exclusive rights are transferred according to the provisions of the Inheritance Law within the duration of protection under the Regulation after the natural person passes away.
Where the exclusive rights in a layout-design are owned by a legal entity or any other organisation, the exclusive rights are enjoyed by the legal entity or other organisation that inherits its rights and obligations within the duration of protection under the Regulations after the legal entity or other organisation reorganises or discontinues; where there is no legal entity or other organisation that inherits its rights and obligations, the layout-design falls into the public domain.

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Chapter III Registration of Layout-design

Article 14 The intellectual property administrative authority under the State Council is responsible for the registration of layout-designs and receives applications for the registration thereof.

Article 15 Any layout-design in respect of which an application for registration is filed shall be handled according to the relevant Chinese regulations if it should be kept confidential since it relates to the State security or vital State interests.

Article 16 The following shall be submitted in accompaniment with an application filed for the registration of a layout-design:

1. The layout-design application form;
2. A copy or drawing of the layout-design;
3. An integrated circuit speciment incorporating a layout-design if put into commercial exploitation; and
4. Any other documents as required for by the intellectual property administrative authority under the State Council.

Article 17 The intellectual property administrative authority under the State Council shall not register any layout-design in respect of which no application for the registration is filed therewith within two years from the date when it is first put into commercial exploitation anywhere in the world.

Article 18 Where there has found no reasonable ground for rejection in the application for registration of a layout-design upon preliminary examination, the intellectual property administrative authority under the State Council shall register it, issue the Registration Certificate and publish the registration.

Article 19 Any layout-design applicant who is not satisfied with the decided rejections of the application for registration may request the intellectual property administrative authority under the State Council for reexamination within three months from the date of receipt of the notification thereof. The intellectual property administrative authority under the State Council, after conducting the reexamination, shall make decision and notify the layout-design applicant. The layout-design applicant who is still not satisfied with the reexamination decision by the intellectual property administrative authority under the State Council may institute legal proceedings in the People's Court within three months from the date of receipt of the notification.

Article 20 Where the intellectual property administrative authority under the State Council, after granting the registration of a layout-design, discovers that the registration does not conform to the provisions of the Regulations, the registration shall be revoked, the holder of right of the layout-design notified, and the revocation published. The holder of right of the layout-design who is not satisfied with the decision by the intellectual property administrative authority under the State Council on the revocation of the layout-design registration may institute legal proceedings in the People's Court within three months from the date of receipt of the notification thereof.

Article 21 Before the registration of a layout-design is published, the staff members of the intellectual property administrative authority under the State Council shall be under the obligation to keep the contents thereof confidential.

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Chapter IV Exercise of the Exclusive Rights in Layout-design

Article 22 The holder of right of a layout-design may assign his exclusive rights or license another person to exploit his layout-design.
Where the exclusive rights of a layout-design are assigned, the interested parties shall conclude a contract in writing, and record the assigned layout-design with the intellectual property administrative authority under the State Council, which shall publish the recorded assignment. The assignment of the layout-design becomes effective on the date of registration.
In licensing another person to exploit his layout-design, the interested parties shall conclude a contract in writing.

Article 23 In any of the following circumstances, a license may not be sought from, nor remuneration paid to the holder of right of a layout-design:

1. An act of reproducing a protected layout-design is performed for private purposes or for the sole purposes of evaluation, analysis, research and teaching;
2. Creating an original layout-design on the basis of the foregoing purposes of evaluation and analysis of the protected layout-design; and
3. Reproducing or putting into commercial exploitation of one's own independently created layout-design that is identical with the layout-design of another person.

Article 24 Where after a protected layout-design, integrated circuit incorporating a layout-design or article incorporating an integrated circuit is put on the market by the holder of right thereof or with the authorisation therefrom, another person puts it again for commercial exploitation, a license may not be sought from, nor remuneration paid to the holder of right of the layout-design.

Article 25 Where a national emergency or any extraordinary state of affairs arises, or where the public interests so require, or the People's Court or the supervising and inspecting department against acts of unfair competition decides that the holder of right of layout-design is involved in an act of unfair competition and needs remedies, the intellectual property administrative authority under the State Council may grant the non-voluntary license for the exploitation of the layout-design.

Article 26 The intellectual property administrative authority under the State Council shall notify, in a timely manner, the holder of right of a layout-design of the decision it has made on the non-voluntary license for the exploitation of the layout-design.
The decision on non-voluntary license for the exploitation of the layout-design shall be made according to the conditions for the non-voluntary license, specifying the scope and time of the exploitation thereof. The scope shall be limited to non-commercial exploitation for the public purposes, or to the remedy as required by the determination by the People's Court or the supervising and inspecting department against acts of unfair competition according to law on the ground that the holder of right of the layout-design is involved in an act of unfair competition and needs remedies.
When the conditions for the non-voluntary license cease to exit and do not arise again, the intellectual property administrative authority under the State Council shall terminate, upon examination, the decision on the non-voluntary license for the exploitation of the layout-design at the request by the holder of right of the layout-design.

Article 27 Any natural person, legal entity or any other organisation that is granted the non-voluntary license for exploitation of the layout-design does not enjoy the exclusive right to exploit, and shall not have the right to authorise exploitation by another person.

Article 28 Any natural person, legal entity or any other organisation that is granted the non-voluntary license for exploitation of the layout-design shall pay to the holder of right of the layout-design the reasonable exploitation fee, the amount of which shall be fixed by both parties in consultations. Where the parties fail to reach an agreement, the intellectual property administrative authority under the State Council shall adjudicate.

Article 29 Where the holder of right of the layout-design is not satisfied with the decision of the intellectual property administrative authority under the State Council on granting the non-voluntary license for the exploitation of the layout-design and where the holder of right of the layout-design and the natural person, legal entity or any other organisation that is granted the non-voluntary license for exploitation of the layout-design are not satisfied with the adjudication regarding the remuneration payable to the holder of right of the layout-design for the exploitation thereof, they may institute legal proceedings in the People's Court within three months from the date of receipt of the notification.

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Chapter V Legal Responsibilities

Article 30 Unless otherwise provided for in the Regulations, in any one of the following acts, an actor that is not licensed by the holder of right of a layout-design, must immediately stop his infringing act and bear liability for damages:

1. Reproducing the whole or any original part of a protected layout-design; and
2. Importing, selling or otherwise distributing, a protected layout-design, integrated circuit incorporating a layout-design or article incorporating an integrated circuit for commercial purposes.

The amount of compensation for infringement of the exclusive rights in a layout-design is the interests sought by the infringer or losses inflicted to the infringee, including the reasonable expenses of the latter in stopping the infringement.

Article 31 Where a dispute is caused by any exploitation of a layout-design without the authorisation of the holder of right thereof, namely an infringement of his or its exclusive rights in the layout-design, it shall be settled through consultation between the interested parties. Where the parties are unwilling to consult or fail in the consultation, the holder of right of a layout-design or an interested party may institute legal proceedings in the People's Court or request the intellectual property administrative authority under the State Council to handle the matter. When the intellectual property administrative authority under the State Council handles the matter and it decides that the infringement is constituted, the intellectual property administrative authority under the State Council may order the infringer to immediately desist from the infringing act, confiscate and destroy the infringing products or material. Where an interested party is not satisfied, he or it may institute legal proceedings in the People's Court according to the Administrative Procedure Law of the People's Republic of China within fifteen days from the date of the receipt of the notification. Where the infringer neither institutes legal proceedings, nor stops the infringing act, the intellectual property administrative authority under the State Council may request the People's Court for compulsory enforcement. The intellectual property administrative authority under the State Council, at the request of an interested party, may mediate on the amount of compensation for the infringement of the exclusive rights in the layout-design. Where the mediation fails, the interested party may institute legal proceedings in the People's Court according to the Administrative Procedure Law of the People's Republic of China.

Article 32 Where the holder of right of a layout-design or an interested party has the evidence that another person is carrying out or will carry out an act of infringement of the exclusive rights in the layout-design, and irreplaceable damages will be caused to his or its lawful rights and interests if the act is not stopped in time, he or it may request the People's Court to take measures to order the relevant act to be stopped and to preserve the property according to law before instituting legal proceedings therein.
Article 33 When obtaining an integrated circuit incorporating a protected layout-design, or an article incorporating an integrated circuit, one puts it in commercial exploitation when he or it does not know, nor has any reasonable grounds to know that it incorporates any illegally reproduced layout-design, it is not deemed an infringement.
After being expressly notified that the product incorporates an illegally reproduced layout-design, the actor of the proceeding clause may continue to put the goods kept in stock or ordered before into commercial exploitation, but he or it shall pay reasonable amount of remuneration to the holder of right of the layout-design.

Article 34 Where any staff member concerned of the intellectual property administrative authority under the State Council commits dereliction of duty, abuses his authority and acts wrongfully out of personal considerations or commits fraudulent acts, he shall be subject to disciplinary sanction. If the act constitutes a crime, he shall be prosecuted for his criminal liability.

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Chapter VI Supplementary Provisions

Article 35 To apply for registration of a layout-design and to go through other procedures, fees shall be paid according to the Regulations. The rate of the fee shall be set by the competent pricing department and the intellectual property administrative authority under the State Council, and published by the intellectual property administrative authority under the State Council.
Article 36 The Regulations shall enter into force on 1 October 2001.

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