Legal Definitions - Semiconductor Chip Protection Act

The Semiconductor Chip Protection Act (SCPA) is a United States federal law enacted in 1984. It provides a unique form of intellectual property protection specifically for the original designs of semiconductor chips and the "mask works" used to manufacture them. This Act was created because traditional intellectual property laws, such as patents and copyrights, did not adequately protect these intricate designs. While patents typically cover novel inventions and copyrights protect original artistic or literary works, the functional and often incremental nature of chip designs and their manufacturing templates fell into a legal gap. The SCPA grants manufacturers exclusive rights, similar to copyright, over their original mask works for a period of ten years, preventing unauthorized copying or use.

Here are some examples of how the Semiconductor Chip Protection Act might apply:

• Protecting a New Processor's Layout: A technology company, "InnovateTech," designs a groundbreaking new processor chip for artificial intelligence applications. The intricate, multi-layered layout, or "mask work," for this chip is a key part of its innovation, dictating how billions of transistors function together. InnovateTech registers its mask work design under the SCPA. When a rival company, "CopyCat Inc.," attempts to reverse-engineer InnovateTech's chip and produce an identical version by directly replicating its mask work, InnovateTech can use the SCPA to sue CopyCat Inc. for infringement, preventing the unauthorized copying and sale of the competitor's chips.

• Preventing Unauthorized Manufacturing Templates: "CircuitWorks" develops a highly efficient power management integrated circuit (IC) for electric vehicles. The specific arrangement of layers and connections in their "mask work" allows for superior performance and a smaller size. A former employee of CircuitWorks leaves the company and, using confidential knowledge of the mask work design, attempts to create a manufacturing template (a new mask work) that is substantially similar to CircuitWorks' protected design for a competing product. The SCPA would allow CircuitWorks to take legal action, as the Act protects against the unauthorized creation and use of mask works that are essentially copies of their registered design, even if not an exact, bit-for-bit replication.

• Addressing Imported Infringing Chips: "Global Devices" manufactures specialized sensor chips for medical diagnostic equipment. They have protected their unique mask work design under the SCPA in the United States. Global Devices discovers that a manufacturer in another country is producing chips using a design that is a direct copy of their protected mask work and is attempting to import these infringing chips into the U.S. market. The SCPA provides Global Devices with a legal basis to prevent the importation and sale of these unauthorized chips within the United States, protecting their investment and market share from foreign-made copies.