China steps up protection for chip designs in revised regulations

"By raising originality standards, tightening registration requirements and penalising bad-faith applications, Beijing is trying to screen out low-quality claims and distinguish companies with genuine technological capability," said Alfredo Montufar-Helu, a Beijing-based managing director at Ankura China Advisors.

The regulations strengthen remedies for infringement, allowing damages to be calculated based on losses suffered by the rights holder or gains made by the infringer. Courts can award punitive damages in serious cases.

The rules also clarify how layout-design rights can be licensed, transferred or used as collateral, and require organisations leading their creation to provide eligible personnel with reasonable rewards and remuneration.