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

(1) Integrated circuit means a semiconductor integrated circuit, that is, an intermediate product or final product that uses semiconductor material as a substrate, integrates two or more components, at least one of which is an active component, and part or all of the interconnection circuits in or on the substrate to perform a certain electronic function;

(2) integrated circuit layout design (hereinafter referred to as layout design) means the three-dimensional arrangement of two or more components, at least one of which is an active component, and part or all of the interconnecting circuits in an integrated circuit, or such three-dimensional arrangement prepared for the manufacture of an integrated circuit;

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

(iv) reproduction means the act of repeatedly producing a layout-design or an integrated circuit incorporating such a layout-design;

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

Article 3 The following terms in these Regulations have the following meanings:　

(1) Integrated circuit means a semiconductor integrated circuit, that is, an intermediate product or final product that uses semiconductor material as a substrate, integrates two or more components, at least one of which is an active component, and part or all of the interconnection circuits in or on the substrate to perform a certain electronic function;

(2) integrated circuit layout design (hereinafter referred to as layout design) means the three-dimensional arrangement of two or more components, at least one of which is an active component, and part or all of the interconnecting circuits in an integrated circuit, or such three-dimensional arrangement prepared for the manufacture of an integrated circuit;

(3) Layout-design right holder refers to the natural person, legal person or unincorporated organization that enjoys the exclusive right to the layout-design in accordance with the provisions of these Regulations ;

(iv) reproduction means the act of repeatedly producing a layout-design or an integrated circuit incorporating such a layout-design;

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

Article 3　Layout-designs created by Chinese natural persons, legal persons or other organizations shall enjoy the exclusive rights to layout-designs in accordance with these Regulations.

If a layout-design created by a foreigner is first put to commercial use in China, he or she shall enjoy the exclusive right to the layout-design in accordance with these Regulations.

For layout-designs created by foreigners, if their country has signed an agreement on layout-design protection with China or jointly participated in an international treaty on layout-design protection with China, the creators shall enjoy the exclusive right to the layout-design in accordance with these Regulations.

Article 4　A layout-design created by a Chinese natural person, legal person or unincorporated organization shall enjoy the exclusive right to layout-design in accordance with these Regulations.

Where a layout-design created by a foreigner , a foreign enterprise or other foreign organization is first put to commercial use in the territory of China, it shall enjoy the exclusive right to the layout-design in accordance with these Regulations.

Layout-designs created by foreigners , foreign enterprises or other foreign organizations , if the country where the creators are from has signed an agreement on layout-design protection with China or has jointly participated in an international treaty on layout-design protection with China, shall enjoy exclusive rights to the layout-designs in accordance with these Regulations.

Article 5　Foreigners, foreign enterprises or other foreign organizations that do not have a permanent residence or place of business in China and that apply for layout-design registration and handle other layout-design matters in China shall entrust a patent agency established in accordance with the law to handle the application.

Chinese natural persons, legal persons or unincorporated organizations that apply for layout-design registration and handle other layout-design matters in China may entrust a patent agency established in accordance with the law to handle the application.

Patent agencies shall abide by laws and administrative regulations and handle layout-design registration or other layout-design matters in accordance with the instructions of the principal; they shall be responsible for keeping confidential the contents of the principal’s layout-design.

Article 4　A protected layout-design must be original, that is, the layout-design is the result of the creator’s own intellectual labor and is not a conventional design recognized among layout-design creators and integrated circuit manufacturers at the time of its creation.

The combination of a protected layout-design consisting of conventional designs as a whole shall comply with the conditions prescribed in the preceding paragraph.

Article 6　A protected layout-design shall be original, that is, the layout-design is the result of the creator’s own intellectual labor and is not a conventional design recognized among layout-design creators and integrated circuit manufacturers at the time of its creation.

The combination of a protected layout-design consisting of conventional designs as a whole shall comply with the conditions prescribed in the preceding paragraph.

Article 8　The intellectual property administrative department of the State Council is responsible for the management of exclusive rights to layout designs throughout the country .

The intellectual property management departments of the people’s governments of provinces, autonomous regions and municipalities directly under the central government are responsible for the management of layout-design exclusive rights within their administrative areas.

Article 11　Where a party delays the time limit prescribed in these Regulations or the time limit designated by the State Council’s intellectual property administrative department due to force majeure, resulting in the loss of its rights, it may, within two months from the date on which the obstacle is removed and within two years from the date on which the time limit expires, state the reasons and attach relevant supporting documents to the State Council’s intellectual property administrative department and request the restoration of its rights.

Except for the circumstances provided for in the preceding paragraph, if a party delays the time limit prescribed in these Regulations or the time limit specified by the State Council intellectual property administrative department due to other legitimate reasons, resulting in the loss of its rights, it may explain the reasons to the State Council intellectual property administrative department and request the restoration of its rights within 2 months from the date of receipt of the notice from the State Council intellectual property administrative department.

If a party requests an extension of the time limit specified by the State Council’s intellectual property administrative department, it shall explain the reasons to the State Council’s intellectual property administrative department and go through the relevant procedures before the expiration of the time limit.

No request for extension of the time limits prescribed in these Regulations may be made.

Article 7　The owner of layout-design rights shall enjoy the following exclusive rights:

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

(2) commercially exploiting a protected layout-design, an integrated circuit incorporating such a layout-design, or an article incorporating such an integrated circuit.

Article 13 The holder of layout-design rights shall enjoy the following exclusive rights:　

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

(2) commercially exploiting a protected layout-design, an integrated circuit incorporating such a layout-design, or an article incorporating such an integrated circuit.

Article 8　The exclusive right to a layout design is created upon registration with the intellectual property administrative department of the State Council.

Unregistered layout designs are not protected by these Regulations.

Article 14　The exclusive right to a layout design shall be created upon registration with the intellectual property administrative department of the State Council.

Unregistered layout designs are not protected by these Regulations.

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

A layout-design that is created under the auspices 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 bears responsibility, is the creator of the legal person or other organization.

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

Article 15　The exclusive right to layout-design belongs to the creator of the layout-design, except as otherwise provided in these Regulations.

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

A layout-design that is created under the auspices of a legal person or an unincorporated organization , in accordance with the will of the legal person or the unincorporated organization, and for which the legal person or the unincorporated organization bears responsibility, is the creator.

Article 17　A legal person or unincorporated organization as provided for in the third paragraph of Article 15 of these Regulations may agree with the natural person who creates the layout-design or stipulate in its legally formulated rules and regulations the form and amount of rewards and remunerations provided for in Article 16 of these Regulations.

The rewards and remuneration given by a legal person or unincorporated organization to a natural person who creates a layout-design shall be handled in accordance with the relevant provisions of the State’s financial and accounting systems.

Article 13　Where the exclusive right to a layout-design belongs to a natural person, upon the death of that natural person, his exclusive right shall be transferred in accordance with the provisions of the inheritance law during the protection period prescribed by these Regulations.

If the exclusive right to a layout-design belongs to a legal person or other organization, after the legal person or other organization changes or terminates, its exclusive right shall be enjoyed by the legal person or other organization that succeeds its rights and obligations during the protection period prescribed by these Regulations; if there is no legal person or other organization that succeeds its rights and obligations, the layout-design shall enter the public domain.

Article 21 Where the exclusive right to a layout-design belongs to a natural person, after the death of that natural person, his exclusive right shall be transferred in accordance with the provisions of the Civil Code of the People’s Republic of China during the protection period prescribed by these Regulations .　

Where the exclusive right to a layout-design belongs to a legal person or an unincorporated organization , after the legal person or unincorporated organization changes or terminates, its exclusive right shall be enjoyed by the legal person or unincorporated organization that succeeds to its rights and obligations during the protection period prescribed by these Regulations ; if there is no legal person or unincorporated organization that succeeds to its rights and obligations , the layout-design shall enter the public domain.

Article 16　An application for layout-design registration shall include:

(1) Application form for layout-design registration;

(2) a copy or drawing of the layout-design;

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

(iv) Other materials required by the intellectual property administrative department of the State Council.

Article 24 To apply for layout-design registration, one must submit: (a) an application form for layout-design registration;　

(2) a copy or drawing of the layout-design;

(3) a declaration of originality of the layout-design;

(iv) where the layout-design has been put into commercial use, submitting samples of integrated circuits incorporating the layout-design;

(5) Other materials required by the intellectual property administrative department of the State Council.

Article 26 The declaration of originality shall indicate the original design area, key design features and electronic functions of the layout-design and explain the reasons for its originality.　

If the layout-design as a whole is original, this should be indicated in the declaration of originality.

Article 32 After a layout-design is approved for registration, if the intellectual property administrative department of the State Council finds that the registration does not comply with the provisions of these Regulations, it shall revoke the registration, notify the layout-design right holder, and make an announcement.　

Any unit or individual who finds that the registration does not comply with the provisions of these Regulations may request the State Council Intellectual Property Rights Administration to cancel the layout-design registration. The State Council Intellectual Property Rights Administration shall promptly review and make a decision on the request to cancel the layout-design registration and notify the applicant and the right holder. The decision to cancel the layout-design registration shall be announced by the State Council Intellectual Property Rights Administration.

The circumstances referred to in the first two paragraphs as not complying with the provisions of these Regulations refer to circumstances not complying with the provisions of Article 3, paragraph (1), Article 3, paragraph (2), Article 4, Article 6, Article 7, Article 9, paragraph 1, Article 20, Article 25, Article 26 or Article 28 of these Regulations.

If the layout-design right holder or the person requesting cancellation is dissatisfied with the review decision of the State Council’s intellectual property administrative department, he or she may file a lawsuit with the people’s court within three months from the date of receipt of the notice.

If the registration of a layout-design is revoked, the exclusive right to the layout-design shall be deemed to have never existed.

Article 22　The holder of layout-design rights may transfer his exclusive rights or license others to use his layout-design.

When transferring the exclusive right to a layout-design, the parties shall enter into a written contract and register it with the State Council’s intellectual property administrative department, which shall make an announcement. The transfer of the exclusive right to a layout-design shall take effect from the date of registration.

When licensing others to use their layout-design, the parties shall enter into a written contract.

Article 35 The owner of layout-design rights may transfer his exclusive rights or license others to use his layout-design.　

If a Chinese natural person, legal person or unincorporated organization transfers the exclusive right to a layout-design to a foreigner, foreign enterprise or other foreign organization, the procedures shall be completed in accordance with the relevant laws and administrative regulations.

When transferring the exclusive right to a layout-design, the parties shall enter into a written contract and register it with the State Council’s intellectual property administrative department, which shall make an announcement. The transfer of the exclusive right to a layout-design shall take effect from the date of registration.

If a party permits others to use its layout-design, it shall enter into a written contract and file it with the intellectual property administrative department of the State Council within three months from the date when the contract takes effect .

Where the exclusive right to layout-design is pledged, the pledger and the pledgee shall jointly apply to the State Council’s intellectual property administrative department for pledge registration, which shall be announced by the State Council’s intellectual property administrative department. The pledge of the exclusive right to layout-design shall take effect from the date of registration.

Article 36 If the co-owners of the exclusive right to a layout design have an agreement on the exercise of the right, the agreement shall prevail. If there is no agreement, the co-owners may use the layout design individually or license others to use the layout design in the form of ordinary license; if the layout design is licensed to others, the royalties collected shall be distributed among the co-owners.　

Except for the circumstances provided for in the preceding paragraph, the exercise of the exclusive right to a layout-design held in common shall be subject to the consent of all co-owners .

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

(1) Reproducing a protected layout-design for personal purposes or solely for the purpose of evaluation, analysis, research, teaching, etc.;

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

(3) Reproducing or commercially exploiting a layout-design that is identical to that of another person and that he has independently created.

Article 37 The following acts may be carried out without the permission of the layout-design right holder and without paying royalties to him :　

(1) Reproducing a protected layout-design for personal purposes or solely for the purpose of evaluation, analysis, research, teaching, etc.;

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

(3) Reproducing or commercially exploiting a layout-design that is identical to that of another person and that he has independently created.

Article 26 Where　the intellectual property administrative department of the State Council makes a decision to grant a non-voluntary license for the use of a layout-design, it shall promptly notify the layout-design right holder.

The decision to grant a non-voluntary license to use a layout design shall specify the scope and time of use based on the reasons for the non-voluntary license. The scope shall be limited to non-commercial use for public purposes, or to the remedies that need to be granted when the People’s Court or the unfair competition supervision and inspection department determines that the layout design right holder has engaged in unfair competition in accordance with the law.

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

Article 40 Where　the intellectual property administrative department of the State Council makes a decision to grant a non-voluntary license for the use of a layout-design, it shall promptly notify the layout-design right holder.

The decision to grant a non-voluntary license for the use of a layout-design shall specify the scope and time of use based on the reasons for the non-voluntary license. The scope shall be limited to non-commercial use for public purposes, or to the remedies required to be granted where the People’s Court or anti-monopoly enforcement agency has determined in accordance with the law that the layout-design right holder has engaged in monopolistic behavior .

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

Article 30　Unless otherwise provided for in these Regulations, if anyone commits any of the following acts without the permission of the layout-design right holder, he must immediately stop the infringing act and bear the liability for compensation:

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

(2) importing, selling or otherwise providing for commercial purposes a protected layout-design, an integrated circuit incorporating such a layout-design or an article incorporating such an integrated circuit.

The amount of compensation for infringement of the exclusive right to layout-design shall be the profits gained by the infringer or the losses suffered by the infringed party, including the reasonable expenses paid by the infringed party to stop the infringement.

Article 44 Unless otherwise provided for in these Regulations, if anyone commits any of the following acts without the permission of the layout-design right holder, he shall immediately cease the infringing act and bear the liability for compensation:　

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

(2) importing, selling or otherwise providing for commercial purposes a protected layout-design, an integrated circuit incorporating such a layout-design or an article incorporating such an integrated circuit.

Article 46 The amount of compensation for infringement of the exclusive right to layout design shall be determined according to the actual losses suffered by the right holder due to infringement or the profits obtained by the infringer due to infringement; if the losses of the right holder or the profits obtained by the infringer are difficult to determine, it shall be reasonably determined by reference to the multiples of the layout design license fee. For intentional infringement of the exclusive right to layout design, if the circumstances are serious, the amount of compensation may be determined at a level not less than one time but not more than five times the amount determined in accordance with the above method.　

If the losses of the right holder, the profits obtained by the infringer and the layout-design license fees are difficult to determine, the people’s court may determine compensation of no more than RMB 5 million based on factors such as the nature and circumstances of the infringement.

The amount of compensation should also include the reasonable expenses paid by the right holder to stop the infringement.

In order to determine the amount of compensation, the people’s court may order the infringer to provide account books and materials related to the infringement if the right holder has tried his best to provide evidence and the account books and materials related to the infringement are mainly held by the infringer; if the infringer fails to provide or provides false account books and materials, the people’s court may determine the amount of compensation with reference to the right holder’s claims and the evidence provided.

Article 47 If a layout-design right holder or an interested party has evidence that another person is committing or is about to commit an act that infringes upon his or her exclusive rights and if such act is not stopped in a timely manner, his or her legitimate rights and interests will suffer irreparable damage, he or she may, before filing a lawsuit, apply to the People’s Court for an order to stop the relevant act and to adopt measures to preserve property.　

In order to stop infringement, if the evidence may be lost or difficult to obtain in the future, the layout design right holder or interested party may apply to the People’s Court for preservation of evidence in accordance with the law before filing a lawsuit.

Article 33:　Where a person obtains an integrated circuit containing a protected layout-design or an article containing such an integrated circuit and does not know and has no reasonable reason to know that it contains an illegally copied layout-design, but exploits it commercially, it shall not be deemed as infringement.

After receiving clear notice that the layout-design contained in the goods is illegally copied, the person who commits the act as referred to in the preceding paragraph may continue to commercially exploit the existing stock or previous orders, but shall pay reasonable remuneration to the layout-design right holder.

Article 48 Where a person obtains an integrated circuit containing a protected layout-design or an article containing such an integrated circuit and does not know and has no reasonable reason to know that it contains an illegally copied layout-design, but puts it into commercial use, it shall not be deemed as infringement.　

After receiving clear notice that the layout-design contained in the goods is illegally copied, the person who commits the act in the preceding paragraph may continue to commercially exploit the existing stock or previous orders, but shall pay reasonable royalties to the layout-design right holder .

Article 49　The intellectual property administrative department of the people’s government of a province, autonomous region or municipality directly under the Central Government may, at the request of the parties, mediate the following exclusive rights disputes:

(1) Disputes over ownership of layout-design application rights and exclusive rights;

(2) Disputes over rewards and remuneration between a legal person or an unincorporated organization and a natural person who created a layout-design;

(3) Other disputes.