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Regulations on the Protection of Layout-Designs of Integrated Circuits (2001)

( Adopted at the 36th Executive Meeting of the State Council on March 28, 2001,
promulgated by Decree No. 300 of the State Council of
the People's Republic of China on April 2001, and effective as of the date of October 1, 2001 )

Exercise of Exclusive Right of Layout-design

Article 22.   The holder of the right of layout-design may assign its or his exclusive right or give other persons a license to exploit its or his layout-design.

Where the exclusive right of layout-design is assigned, the parties concerned shall conclude a written contract and register it with the intellectual property administration department of the State Council. The intellectual property administration department of the State Council shall announce the registration. The assignment of the exclusive right of layout-design shall take effect as of the date of registration.

Where a license to exploit a layout-design is given to others, the parties shall conclude a written contract.

Article 23.   Any of the following acts may be performed without the authorization of the holder of the right of layout-design and without any payment of remuneration:

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

(2) creating a layout-design with originality on the basis of the evaluation or analysis of a protected layout-design referred to in the preceding sub-paragraph;

(3) reproducing or commercially exploiting a layout-design that is identical with the layout-design of another person but is created independently by oneself.

Article 24.   Where a protected layout-design, an integrated circuit incorporating such a layout-design, or an article incorporating such an integrated circuit has been put on the market by, or with the consent of, the holder of the right of layout-design, anyone may exploit it for commercial purposes without the authorization of, nor payment of remuneration to, the holder of the right of layout-design.

Article 25.   In the case of a national emergency, or in any extraordinary state of affairs, or for the purposes of public interests, or where it is determined according to the law by the people's court or the supervision and inspection department against unfair competition that there is unfair competition on the part of the holder of the right of layout-design and there is a need to give remedy, the intellectual property administration department of the State Council may grant a non-voluntary license to exploit the layout-design.

Article 26.   Any decision made by the intellectual property administration department of the State Council granting a non-voluntary license to exploit a layout-design shall be notified promptly to the holder of the right of layout-design.

In the decision granting a non-voluntary license to exploit a layout-design, the scope and duration of the exploitation shall be specified on the basis of the reasons justifying the grant. The scope shall be limited to non-commercial use for public purposes, or to remedy an act of the holder of the right of layout-design determined according to the law by the people's court or the supervision and inspection department against unfair competition to be one of unfair competition.

When the circumstances which led to such non-voluntary license cease to exist and are unlikely to recur, the intellectual property administration department of the State Council shall, after reviewing upon the request of the holder of the right of layout-design, make a decision to terminate the non-voluntary license.

Article 27.   Any natural person, legal person or other organization that is granted a non-voluntary license to exploit a layout-design shall not have an exclusive right to exploit it and shall not have the right to authorize exploitation by any other person.

Article 28.   Any natural person, legal person or other organization that is granted a non-voluntary license shall pay to the holder of the right of layout-design a reasonable remuneration, the amount of which shall be fixed by both parties in consultations; where the parties fail to reach an agreement, the intellectual property administration department of the State Council shall make an adjudication.

Article 29.   Where the holder of the right of layout-design is not satisfied with the decision of the intellectual property administration department of the State Council granting a non-voluntary license to exploit the layout-design, or where the holder of the right of layout-design or, the natural person, legal person or other organization that is granted the non-voluntary license is not satisfied with the ruling made by the intellectual property administration department of the State Council regarding the remuneration payable for exploitation, it or he may, within three months from the date of receipt of notification, bring a law suit before the people's court.