China Revises IC Layout-Design Protection Regulations, Introducing Revocation System and Punitive Damages

WISECODE Take

China released an interpretation of the revised Regulations on the Protection of Layout-Designs of Integrated Circuits on October 8, 2026. This revision transforms administrative registration into a powerful commercial weapon by introducing a third-party revocation process and punitive damages of 1 to 5 times. For IC design companies, litigation risks and damage amounts in China will increase significantly. Unaffected companies are those without Chinese IC registrations, but relevant enterprises should utilize intellectual property audits to review the defensive gaps between layout designs and patents. First, audit registered ICs to assess graphic confidentiality. Second, prepare evidence to challenge competitors' unoriginal layout designs.