China revises regulations to strengthen protection for chip designs, allowing punitive damages for infringement
The revised regulations, signed by Premier Li Qiang on July 23 and taking effect on October 15, aim to make it harder to copy chip designs or secure legal rights over designs developed by others. Applicants must now demonstrate genuine creative activity and clearly identify original elements. Regulators can reject applications that fail to meet these requirements, and the changes also provide a clearer basis for challenging improperly granted registrations. Courts can award punitive damages in serious infringement cases, with damages calculated based on losses or gains. This move reflects Beijing's increased strategic emphasis on technology developed by Chinese companies, following successive U.S. restrictions on China's access to advanced semiconductor design software and manufacturing equipment.
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