Signal China Issues First Systematic Revision of IC Layout-Design Protection Regulation Since 2001

Summary

Chinese Premier Li Qiang signed a State Council decree issuing a revised regulation on the protection of integrated circuit layout-designs, Xinhua reported on August 3, 2026. The revised text was adopted at the State Council's 91st executive meeting on July 10, 2026 and promulgated on July 23, taking effect October 15, 2026 as the first systematic revision since the original regulation was introduced in 2001. The revision expands protection to cover photonic and quantum integrated circuits and adds a third-party revocation mechanism along with punitive damages for serious infringement, with compensation based on actual losses, infringer profits, or a reasonable multiple of licensing fees. It refines application and examination procedures, requiring applications to be based on genuine creative activity free of fraud, and updates rules for transfer, licensing, pledging, and rights distribution among co-owners. The move comes amid ongoing US export controls and is widely read as a strategic effort to strengthen China's domestic semiconductor and AI innovation through intellectual property law rather than industrial policy alone.