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Requisites for Registration of a Layout Design & Rights of Proprietor under the Semiconductor Integrated Circuits Layout-Design Act, 2000



Q.7 — Requisites for Registration of a Layout Design & Rights of Proprietor under the Semiconductor Integrated Circuits Layout-Design Act, 2000


I. Meaning of Layout Design

A Layout Design means the 3-dimensional arrangement of elements and interconnections in a semiconductor integrated circuit (IC).
(Section 2(l) of the Act)

Examples:

  • Microprocessor chip design
  • RAM/ROM layout
  • Mobile processor circuit designs

This Act protects the originality, creativity, and commercial value of IC designs.


II. Requisites for Registration of a Layout Design

Registration is governed by Sections 7–10 of the Semiconductor Integrated Circuits Layout-Design Act, 2000.


1. Layout Design Must Be Original (Section 7)

A layout design must be:

a) New and not previously commercially exploited

It should not have been used or sold anywhere in India or abroad before filing the application.

b) Results from the creator’s own intellectual effort

The design must show creative input and technical skill.

c) Not commonly known to designers in the field

It must not be a routine, standard, or commonly used arrangement of circuits.


2. It Should Not Be Contrary to Public Order or Morality (Section 7(3))

Designs that promote illegal purposes or harm public interest cannot be registered.


3. Application Procedure (Section 11)

The application must include:

  • Name & address of applicant
  • Representation/diagram of layout design
  • Declaration that the design is original
  • Fee payment
  • Power of attorney (if filed through agent)

Once filed → Registrar examines enforceability.


4. Examination by Registrar (Section 13)

Registrar checks:

  • originality
  • commercial exploitation
  • completeness of documents
  • compliance with law

If objections → applicant gets opportunity to reply.


5. Publication & Opposition (Sections 14–15)

After acceptance:

  • The application is published in the Layout Design Journal.
  • Any person may file opposition within 3 months.
  • Registrar decides the matter after hearing parties.

6. Registration (Section 16)

If no opposition or opposition is rejected, the Registrar enters:

  • applicant’s name,
  • date of filing,
  • representation of design

Certificate of Registration is issued.


7. Duration of Protection (Section 17)

The registration lasts for 10 years from date of filing or first commercial exploitation—whichever is earlier.


III. Rights of Proprietor After Registration

Once registered, the proprietor receives exclusive rights (Sections 18–19).


1. Exclusive Right to Use Layout Design

Only the proprietor can use, manufacture, sell, or import the layout design.


2. Right to Authorize Others

The proprietor can:

  • License the design
  • Assign the design to another
  • Collect royalty

This brings commercial benefit to designers and companies.


3. Right to Prevent Infringement (Section 19)

The proprietor can stop any person from:

  • reproducing the layout design
  • importing or selling ICs with copied designs
  • using design without permission

4. Right to Sue for Damages

The proprietor can file a civil suit to claim:

  • damages
  • accounts of profits
  • injunction
  • seizure/destruction of infringing goods

5. Right Against Indirect Copying

Even if a person copies part of the IC but the copied part is original and significant → it is infringement.


IV. Exceptions — When Use Does NOT Amount to Infringement (Section 20)

1. Reverse engineering (for analysis, evaluation, teaching)

Allowed if not used for commercial exploitation.

2. Innocent Infringement

If a seller didn’t know that layout design was infringing, he is not liable for past acts but must stop after notice.


V. Case Law (Important for LLB Exams)

1. Intel Corporation v. CPM United Kingdom (2006)

Court held that integrated circuit designs require strict protection due to huge R&D investment.
Importance: Protects chip architecture and prevents misappropriation.


2. U.S. Semiconductor Chip Protection Act Cases (persuasive value)

Although foreign, Indian courts consider them.
Held: Even partial copying of chip layout constitutes infringement.


3. STMicroelectronics Cases

Courts stressed importance of protecting IC design innovation, especially in telecom and computing industries.


VI. Importance of Layout Design Protection

  • Encourages technological innovation
  • Protects expensive R&D investments
  • Prevents unfair competition
  • Boosts electronics & semiconductor industry
  • Ensures originality in chip manufacturing

VII. Conclusion (Exam-Writing Form)

For registration of a layout design under the Semiconductor Integrated Circuits Layout-Design Act, 2000, the design must be original, not previously exploited, and must arise from the designer’s intellectual effort. Once registered, the proprietor gets exclusive economic rights, including the right to use, license, sell, and prevent infringement. The Act ensures the protection of India’s semiconductor innovation and technological growth.



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