LAWS AND REGULATIONS

Decree of The State Council of the People's Republic of China

(No. 300)

　　The Regulations on the Protection of Layout Designs of Integrated Circuits, adopted at the 36th Executive Meeting of The State Council on March 28, 2001, are hereby promulgated and shall come into force as of October 1, 2001.

　　Premier Zhu Rongji

　　April 2, 2001

　　Regulations for the protection of layout design of integrated circuits

　　Chapter I General provisions

　　Article 1 These Regulations are formulated for the purpose of protecting the exclusive right of layout design of integrated circuits, encouraging the innovation of integrated circuit technology and promoting the development of science and technology.

　　Article 2 The meanings of the following terms in these Regulations:

　　(1) Integrated circuit refers to a semiconductor integrated circuit, that is, a semiconductor material as a substrate, at least one of the active components of two or more components and part or all of the interconnecting lines integrated in the substrate or on the substrate, to perform a certain electronic function of the intermediate product or final product;

(2) Layout design of integrated circuits (hereinafter referred to as "layout design") refers to the three-dimensional configuration of two or more components and some or all of the interconnection lines of an integrated circuit in which at least one of them is an active component, or such three-dimensional configuration prepared for the manufacture of an integrated circuit;

(3) The term "layout-design right holder" means a natural person, legal person or other organization that, in accordance with the provisions of these Regulations, enjoys the exclusive right to a layout-design;

(4) Duplication means the act of repeatedly producing a layout-design or an integrated circuit containing such layout-design;

(5) Commercial exploitation means the act of importing, selling or otherwise supplying for commercial purposes a protected layout-design, an integrated circuit containing such layout-design or an article containing such an integrated circuit.

Article 3 A layout-design created by a Chinese natural person, legal person or other organization shall enjoy the exclusive right of layout-design in accordance with these Regulations.

Where a layout-design created by a foreigner is first put into commercial use within the territory of China, he shall enjoy the exclusive right to the layout-design in accordance with these Regulations.

Where the country of the creator of a layout-design created by a foreigner has signed a layout-design protection agreement with China or is a party to an international treaty on the protection of layout-design with China, he or she shall enjoy the exclusive right of layout-design in accordance with these Regulations.

Article 4 A protected layout-design shall be original, that is, the layout-design is the result of the intellectual labor of the creator himself, and at the time of creation the layout-design is not a recognized conventional design among the layout-design creator and integrated circuit manufacturer.

The combination of a protected layout-design consisting of a conventional design as a whole shall meet the conditions specified in the preceding paragraph.

Article 5 The protection of layout-design in these Regulations shall not extend to ideas, processing processes, operating methods or mathematical concepts.

(Related information: Department rules 1 Practice guide)

Article 6 The intellectual property administrative department under The State Council shall, in accordance with the provisions of these Regulations, be responsible for the relevant administration of the exclusive right of layout-design.

Chapter II The exclusive right of layout-design

Article 7 The right holder of a layout-design shall enjoy the following exclusive rights:

(1) reproduction of the whole or any original part of a protected layout-design;

(2) Putting into commercial use the protected layout-design, the integrated circuit containing the layout-design or the article containing the integrated circuit.

Article 8 The exclusive right of a layout-design shall be registered by the intellectual property administrative department under The State Council.

Unregistered layout-designs shall not be protected by these Regulations.

Article 9 The exclusive right of a layout-design belongs to the creator of a layout-design, except as otherwise provided for in these Regulations.

If a layout-design is created under the direction of a legal person or other organization, in accordance with the will of the legal person or other organization, and for which the legal person or other organization is responsible, the legal person or other organization shall be the creator.

A layout-design created by a natural person, who is the creator.

Article 10 Where two or more natural persons, legal persons or other organizations jointly create a layout-design, the ownership of the exclusive right thereof shall be agreed upon by the parties; Where no agreement has been made or the agreement is unclear, the exclusive right shall be shared by the partners.

Article 11 The ownership of the exclusive right of a commissioned layout-design shall be agreed upon by the client and the trustee. Where no agreement has been made or the agreement is unclear, the exclusive right shall be enjoyed by the trustee.

Article 12 The term of protection of the exclusive right of a layout-design shall be 10 years, counting from the date of application for registration of the layout-design or the date when it is first put into commercial use anywhere in the world, whichever is the earlier. However, regardless of whether a layout-design is registered or put into commercial use, it shall no longer be protected by these Regulations after 15 years from the date of creation.

Article 13 Where the exclusive right of layout-design belongs to a natural person, after the death of the natural person, the exclusive right shall be transferred in accordance with the provisions of the succession Law within the period of protection provided for in these Regulations.

Where the exclusive right of a layout-design belongs to a legal person or other organization, after the legal person or other organization is changed or terminated, its exclusive right shall be enjoyed by the legal person or other organization that succeeds its rights and obligations during the period of protection provided for in these Regulations. If there is no legal person or other organization inheriting its rights and obligations, the layout-design shall enter the public domain.

Chapter III Registration of layout-designs

Article 14 The intellectual property administration department under The State Council shall be responsible for the registration of layout-designs and accept applications for registration of layout-designs.

Article 15 Where a layout-design applied for registration involves national security or major interests and requires confidentiality, it shall be handled in accordance with the relevant provisions of the State.

Article 16 An application for registration of a layout-design shall be submitted:

(1) Application form for registration of layout-design;

(2) Copies or drawings of layout-designs;

(3) Where the layout-design has been put into commercial use, submit samples of integrated circuits containing the layout-design;

(4) Other materials prescribed by the intellectual property administration department under The State Council.

Article 17 Where a layout-design fails to file an application for registration with the intellectual property administrative department under The State Council within two years from the date of its first commercial exploitation anywhere in the world, the intellectual property administrative department under The State Council shall no longer register it.

　　Article 18 Where an application for registration of a layout-design has been preliminatively examined and no reason for rejection is found, the intellectual property administrative department under The State Council shall register the application, issue the registration certificate, and announce it.

Article 19 Where an applicant for layout-design registration is not satisfied with the decision of the intellectual property administrative department under The State Council rejecting his application for registration, he may, within three months from the date of receipt of the notification, request the intellectual property administrative department under The State Council for a review. After review, the intellectual property administrative department under The State Council shall make a decision and notify the applicant for layout-design registration. Where the applicant for layout-design registration still refuses to accept the reexamination decision made by the intellectual property administrative department under The State Council, he may bring a suit in a people's court within three months from the date of receipt of the notification.

Article 20 Where the intellectual property administrative department under The State Council finds that the registration of a layout-design is not in conformity with the provisions of these Regulations, it shall cancel the registration, notify the right holder of the layout-design and make a public announcement. Where the right holder of a layout-design is not satisfied with the decision of the intellectual property administrative department under The State Council to revoke the registration of the layout-design, he may bring a suit in a people's court within three months from the date of receipt of the notification.

Article 21 Before the publication of the registration of a layout-design, the staff of the intellectual property administrative department under The State Council shall be obliged to keep the contents confidential.

Chapter IV Exercise of the exclusive right of layout-design

Article 22 The right holder of a layout-design may transfer its exclusive right or license another person to use its layout-design.

Where the exclusive right to a layout-design is transferred, the parties shall conclude a written contract and register it with the intellectual property administrative department under The State Council, which shall make a public announcement. The assignment of the exclusive right of layout-design shall take effect as of the date of registration.

Where another person is licensed to use the layout-design, the parties concerned shall conclude a written contract.

Article 23 The following acts may be performed without the permission of the layout-design right holder and without payment of remuneration to him:

(1) reproducing a protected layout-design for personal purposes or for the sole purpose of evaluation, analysis, research or teaching;

(2) Creating an original layout-design on the basis of the evaluation and analysis of the protected layout-design in accordance with the preceding paragraph;

(3) copying or putting into commercial use a layout-design identical with others independently created by oneself.

Article 24 Where a protected layout-design, an integrated circuit containing the layout-design or an article containing the said integrated circuit is placed on the market by or with the permission of the layout-design right holder and another person makes commercial use of it again, the layout-design right holder may not obtain permission from the layout-design right holder and shall not be paid remuneration to the layout-design right holder.

Article 25 The intellectual property administrative department under The State Council may grant an involuntary license for the use of a layout-design when a state of emergency or an extraordinary situation arises, or for the purpose of public interest, or when the people's court or the department for supervision and inspection of acts of unfair competition determines according to law that the right holder of a layout-design has engaged in an act of unfair competition and needs to be given a remedy.

Article 26 When the intellectual property administration department under The State Council decides to grant an involuntary license to the use of a layout-design, it shall promptly notify the right holder of the layout-design.

The decision to grant an involuntary license for the use of a layout-design shall, on the basis of the reasons for the involuntary license, specify the scope and time of use, and shall be limited to non-commercial use for public purposes, or to remedies that need to be granted if the people's court or the department for supervision and inspection of acts of unfair competition have determined according to law that the right holder of a layout-design has engaged in acts of unfair competition.

When the reasons for the involuntary license are eliminated and no longer occur, the intellectual property administrative department under The State Council shall, upon request of the right holder of the layout-design, make a decision to terminate the use of the involuntary license of the layout-design after examination.

Article 27 A natural person, legal person or other organization that has obtained an involuntary license for the use of a layout-design shall not enjoy the exclusive right to use it, and shall not have the right to allow others to use it.

Article 28 A natural person, legal person or other organization that has obtained an involuntary license for the use of a layout-design shall pay a reasonable remuneration to the right holder of the layout-design, the amount of which shall be negotiated by both parties. If no agreement can be reached between the two parties, the intellectual property administrative department under The State Council shall make a ruling.

Article 29 Where the owner of the right of a layout-design is not satisfied with the decision of the intellectual property administrative department under The State Council on the involuntary license for the use of a layout-design, or the natural person, legal person or other organization that has obtained the involuntary license is not satisfied with the ruling of the intellectual property administrative department under The State Council on the remuneration for the involuntary license for the use of a layout-design, He may bring a suit in a people's court within three months from the date of receipt of the notification.

Chapter V Legal liability

Article 30 Except as otherwise provided for in these Regulations, where any of the following acts are committed without the permission of the layout-design right holder, the perpetrator must immediately stop the infringing act and bear the liability for compensation:

(1) reproducing the whole or any original part of the protected layout-design;

(2) Importing, selling or otherwise providing for commercial purposes a protected layout-design, an integrated circuit containing such layout-design or articles containing such integrated circuit.

The amount of compensation for infringement of the exclusive right of a layout-design shall be the interests obtained by the infringer or the losses suffered by the infringed, including the reasonable expenses paid by the infringed to stop the infringing act.

Article 31 Where a layout-design is used without the permission of the right holder of the layout-design, that is, the exclusive right of the layout-design is infringed upon, and a dispute arises, it shall be settled by the parties through consultation. Where consultation is unwilling or fails, the layout-design right holder or interested party may bring a suit before a people's court or request the intellectual property administrative department under The State Council to handle the matter. Where the intellectual property administrative department under The State Council finds that the infringing act is established, it may order the infringer to stop the infringing act immediately and confiscate or destroy the infringing product or article. If the party is not satisfied, it may, within 15 days from the date of receipt of the notice of disposition, bring a suit in a people's court in accordance with the Administrative Procedure Law of the People's Republic of China; If the infringer neither brings a suit nor stops the infringing act within the time limit, the intellectual property administrative department under The State Council may request the people's court to enforce the act. At the request of the party concerned, the intellectual property administrative department under The State Council may mediate the amount of compensation for infringement of the exclusive right of a layout-design; If mediation fails, the parties may bring a suit in a people's court in accordance with the Civil Procedure Law of the People's Republic of China.

Article 32 Where a layoutdesign right holder or an interested party has evidence to prove that another person is committing or is about to commit an act infringing upon its exclusive right, which will cause irreparable damage to its legitimate rights and interests if it is not stopped in time, it may, before bringing a suit, apply to the people's court according to law for measures to order the cessation of the relevant acts and property preservation.

Article 33 Where an integrated circuit containing a protected layout-design is obtained or an article containing such an integrated circuit is put into commercial use without knowing and having no reasonable reason to know that it contains an illegally copied layout-design, it shall not be deemed an infringement.

After receiving a clear notice of the layout-design containing illegal reproduction, the actor mentioned in the preceding paragraph may continue to put the existing inventory or previous orders into commercial use, provided that he shall pay reasonable remuneration to the right holder of the layout-design.

Article 34 Where any staff member of the intellectual property administration department under The State Council neglects his duty, abuses his power or engages in malpractices for personal gains in the administration of layout-design, if the case constitutes a crime, he shall be investigated for criminal responsibility according to law; If the case does not constitute a crime, administrative sanctions shall be imposed according to law.

Chapter VI Supplementary Provisions

Article 35 In applying for registration of a layout-design and going through other formalities, fees shall be paid in accordance with the relevant provisions. The payment standards shall be formulated by the competent price department under The State Council and the intellectual property administrative department under The State Council, and announced by the intellectual property administrative department under The State Council.

Article 36 These Regulations shall come into force as of October 1, 2001.