 clauses55 transitional provisions,  chapter ix offences, penalties and procedure56 penalty for infringement of layout-design 37 penalty for falsely representing a layout-design as registered 58 penalty for improperly describing a place of business as connected with the semiconductor integrated circuits layout-design registry 59 penalty for falsification of entries in the register 60 forfeiture of goods 61 exemption of certain persons employed in ordinary course of business 62 procedure where invalidity of registration is pleaded by the accused 63 offences by companies 64 cognizance of certain offences 65 costs of defence or prosecution 66 information as to commission of offence 67 punishment of abetment in india of acts done out of india  chapter x miscellaneous68 protection of security in india 69 protection of action taken in good faith 70 certain persons to be public servants 71 implied warranty on sale of layout-design, etc 72 powers of register 73 exercise of discretionary power by registrar 74 evidence before registrar 75 death of party to a proceeding 76 extension of time clauses77, abondonment 78 preliminary advise by the registrar 79, registered user to be impleaded in certain proceedings 80 evidence of entries in register, etc, and things done by the registrar 81 registrar and other officers not compellable to produce register, etc 82 certificate of validity 83 address for service 84 agents 85 layout-design registered by an agent or representative without authority 86 indexes 87 documents open to public inspection 88 reports of registrar to be placed before parliament 89 fees and surcharge 90 savings in respect of chapter ix 91 declaration as to ownership of layout-design not registerable under the registration act, 1908, 92 government to be bound 93 convention countries 94 provision as to reciprocity 95 power of central government to remove difficulties 96 power to make rules bill no, l of 1999 the semiconductor integrated circuits layout-design bill, 1999 a billto provide for the protection of the semiconductor integrated circuits layout-designs © and for matters connected therewith or incidental thereto, whereas the final act embodying the results of the uruguay round of multilateral trade negotiations done at marrakesh on the 15th day of april, 1994 provides for establishment of the world trade organisation; and whereas the agreement on trade related aspects of intellectual property rights is part of the said final act; and whereas the government of india, having ratified the said final act, should inter alia make provisions for giving effect to section 6 part ii of the agreement on trade related aspects of intellectual property rights relating to layout-design (topographies) of integrated circuit; ' be it enacted by parliament in the fiftieth year of the republic of india as follows:—- chapter i preliminaryshort | title, 1, (j) this act may be called the semiconductor integrated circuits layout-design act, 1999, extent and commencement (2) it extends to the whole of india (3) it shall come into force on such date as the central government may, by notification in the official gazette, appoint; and different dates may be appointed for different provisions of this act, and any reference in any such provision to the commencement of this act shall be construed as a reference to the coming into force of that provision 2 in this act, unless the context otherwise requires,— definitions (a) "appellate board" means the appellate board established under section 32; (b) "assignment" means an assignment in writing by act of the parties concerned; (c) "bench" means a bench of the appellate board; (d) "chairman" means the chairman of the appellate board; (e) "commercial exploitation", in relation to semiconductor integrated circuits layout-design, means to sale, lease, offer or exhibit for sale or otherwise distribute such semiconductor integrated circuit for any commercial purpose; (f) "convention country" means a country notified as such under sub-section (1) of section 93 (g) "judicial member" means a member of the appellate board appointed as such under this act, and includes chairman or such vice-chairman who possesses any of the qualifications specified in sub-section (3) of section 34;; (h) "layout-design" means a layout of transistor or other circuitry elements and includes lead wires connecting such elements" and expressed in any manner in a semiconductor integrated circuit; (2) "member" means a judicial member or a technical member of the appellate board and includes the chairman or vice-chairman; (j) "notify" means to notify in the semiconductor integrated circuit journal published by the registrar; (k) "prescribed" means prescribed by rules made under this act; (1) "register" means register of layout-designs referred to in section 6; (m) "registered" (with its grammatical variations) means registered under this act; (n) "segistered proprietor", in relation to a layout-design, means the person for the time being entered in the register as proprietor of the layout-design; (o) "registered layout-design" means a layout-design which is actually onthe register; (p) "registered user" means a person who is for the time being registered as such under section 25; (q) "registrar" means the registrar of semiconductor integrated circuits layout- design referred to in section 3; (r) "semiconductor integrated circuit" means a product having transistors or other circuitry elements which are inseparably formed on a semiconductor material or an insulating material or inside the semiconductor material and designed to perform an electronic circuitry function; (s) "technical member" means a member of the appellate board who is not a judicial member and includes the chairman or such vice-chairman who possesses any of the qualifications specified in sub-section (4) of section 34; (t) "transmission" means transmission by operation of law, devolution on the personal representation of a deceased person or any other mode of transfer not being assignment, (u) any reference to the semiconductor integrated circuits layout-design registry shall be construed as including a reference to any office of the semiconductor integrated circuits layout-design registry  chapter ii the register and conditions of registration3 (1) the central government may, by notification in the official gazette, registrar of appoint a person to be known as the registrar of semiconductor integrated semicon- circuits layout-design for the purposes of this act ductor ~ integrated (2) the central government may appoint such other officers with such circuits designation as it thinks fit for the purpose of discharging, under the layoutsuperintendence and direction of the registrar, such functions of the registrar design under this act as he may from time to time authorise them to discharge 4 without prejudice to the generality of the provisions of sub-section (2) of section power of 3, the registrar may, by order in writing and for reasons to be recorded therein, registrar to withdraw any matter pending before an officer appointed under the said sub-section (2) _ transfer and deal with such matter himself either de novo or from the stage it was so pending withdrawn or transfer the same to another officer so appointed who may subject to the _metters special direction in the order of transfer deal with the matter either de novo or from the stage it was so transferred 5 (1) for the purposes of this act, there shall be established a registry which shall registry be known as the semiconductor integrated circuits layout-design registry (2) the head office of the semiconductor integrated circuits layout-design registry shall be at such place as the central government may specify and for the purposes of facilitating the registration of layout-designs, there may be established, on such places as the central government may think fit, branch offices of the semiconductor integrated circuits layout-designs registry (3) the central government may, by notification in the official gazette, define territorial limits within which an office of the semiconductor integrated circuits layout- designs registry may exercise its functions (4) there shall be seal of the semiconductor integrated circuits layout-design registry register of layout- designs 6 (/) for the purposes of this act, a record called register of layout-designs shall be kept at the head office of the semiconductor integrated circuits layout-design registry wherein shall be entered all registered layout-designs with the names, addresses and descriptions of the proprietor and such other matters related to the registered layout-designs as may be prescribed (2) subject to the superintendence and direction of the central government, the register shall be kept under the control and management of the registrar (3) there shall be kept at each branch office of the semiconductor integrated circuits layout-designs registry a copy of the register and other documents as the central government may, by notification, in the official gazette, direct  7 (1) a layout-design—prohibition (a) which is not original; or | of       | regis-    ||----------|-----------|| tration  | of        || certain  |           || layout-  |           || designs |           |(b) which has been commercially exploited anywhere in india or in a convention country; or (c) which is not inherently distinctive; or (d) which is not inherently capable of being distinguishable from the other registered lay-out design, shall not be registered as a layout-design: provided that a layout-design which has been commercially exploited for not more than two years from the date on which an application for its registration has been filed either in india or in a convention country shall be treated as not having been commercially exploited for the purposes of this sub-section (2) a layout-design shall be considered to be original if it is the result of its creator's own intellectual efforts and is not commonly known to the creators of layout-designs and manufacturers of semiconductor integrated circuits at the time of its creation: provided that a layout-design consisting of such combination of elements and interconnections that are commonly known among creators of layout-designs and manufacturers of semiconductor integrated circuits shall be considered as original if such combination taken as a whole is the result of its creator's own intellectual efforts (3) where an original layout-design has been created in execution of a commission or a contract of employment, the right of registration to such layout-design under this act shall belong, in the absence of any contractual provision to the contrary, to the person who commissioned the work or to the employer chapter iii procedure for and duration of registrationapplication 8 (1) any person claiming to be the creator of a layout-design, who is desirous of registering it, shall apply in writing to the registrar in the prescribed manner for the registration of his layout-design for registration (2) every application under sub-section (7) shall be filed in the office of the semiconductor integrated circuits layout-design registry within whose territorial limits the principal place of business in india ofthe applicant or in the case of joint application the principal place of business in india of the applicant whose name is first mentioned in the application, as having a place of business in india, is situate: provided that, where the applicant or any of the joint applicant does not carry on business in india, the application shall be filed in the office of the semiconductor integrated circuits layout-design registry within whose territorial limits the place mentioned in the address for service in india as disclosed in the application is situate (3) subject to the provisions of this act, the registrar may refuse the application or may accept it absolutely or subject to such amendments or modifications, as he may think fit withdrawal of acceptance, 9 where after the acceptance of an application for registration of layout-design, but before its registration, the registrar is satisfied that the layout-design is prohibited of registration under section 7, the registrar may, after hearing the applicant if he so desires, withdraw the acceptance and proceed as if the application had not been accepted 10 (1) when an application for registration of a layout-design has been accepted, the registrar shall, as soon as may be after acceptance, cause the application as accepted to be advertised in the prescribed manner advertisement of application (2) where after advertisement of an application— (a) an error in the application has been corrected; (b) the application has been permitted to be amended under section 12, the registrar may in his discretion cause the application to be advertised again or, in any case falling under clause (b), may, instead of causing the application to be advertised again, notify in the prescribed manner the correction or amendment made in the application opposition to registration11 (j) any person may, within three months from the date of the advertisement or re-advertisement of an application for registration or within such further period, not exceeding one month in the aggregate, as the registrar, on application made to him in the prescribed manner and on payment of the prescribed fee, allows, give notice in writing in the prescribed manner to the registrar of opposition to the registration (2) the registrar shall serve a copy of the notice on the applicant for registration and, within two months from the receipt by the applicant of such copy of the notice of opposition, the applicant shall send to the registrar in the prescribed manner a counterstatement of the grounds on which he relies for his application and if he does not do so, he shall be deemed to have abandoned his application (3) if the applicant sends such counter-statement, the registrar shall serve a copy thereof on the person giving notice of opposition (4) any evidence upon which the opponent and the applicant may rely shall be submitted in the prescribed manner and within the prescribed time to the registrar, the registrar shall give an opportunity to them to be heard if they so desire (5) the registrar shall, after hearing the parties, if so required, and considering the evidence, decide after taking into account any ground of objection whether relied upon by the opponent or not (6) when a person giving notice of opposition or an applicant sending a counter- statement after receipt of a copy of such notice neither resides nor carries on business in india, the registrar may require him to give security for the costs of proceedings before him and, in default of such security being duly given, may treat the opposition or application, as the case may, as abandoned 12 the registrar may on such terms as he thinks just— correction and amendment (a) at any time, whether before or after acceptance of an application for registration under section 8, permit the correction of any error in or in connection with the application or permit an amendment of the application; or (b) permit correction of any error in, or an amendment of, a notice of opposition or a counter-statement under section 11 registration 13 (1) subject to the provisions of section 9, when an application for the registration of the layout-design has been accepted and either— (a) the application has not been opposed and time for notice of opposition has expired, or (b) the application has been opposed and the opposition has been decided in favour of the applicant, the registrar shall register the said layout-design in the register and the layout-design shall be registered as of the date of the making of the said application and that date shall be deemed to be the date of registration (2) in the registration of the layout-designs, the registrar shall issue to the applicant a certificate in the prescribed form of the registration thereof sealed with the seal of the semiconductor integrated circuits layout-designs registry (3) where registration of a layout-design is not completed within twelve months from the date of the application by reason of default on the part of the applicant, the registrar may, after giving notice to the applicant in the prescribed manner, treat the application as abandoned unless it is completed within the time specified in that behalf in the notice (4) the registrar may amend the register or a certificate of registration for the purpose of correcting a clerical error or an obvious mistake 14 (j) save as provided in sub-section (2), nothing in this act shall authorise the registration of two or more persons who claim to be the creator of a layout-design jointly owned layout design (2) where the relation between two or more persons claiming to be the creator of layout-design are such that—(a) both of them or all of them have put the combined intellectual effort in creating such design; or (b) in relation to the creation of such layout-design both of them or all of them are connected in such manner that intellectual effort of each of them are not distinguishable in creation of such layout-design, those persons may be registered as joint proprietor of the layout design and this act shall have effect in relation to any right to the use of the layout-design vested in those persons as if in those rights vested in a single person 15 the registration of a layout-design shall be only for a period of ten years counted from the date of filing an application for registration or from the date of first commercial exploitation anywhere in any country whichever is earlier duration of registration  chapter iv effect of registration16 no person shall be entitled to institute any proceeding to prevent, or to recover damages for, the infringement of an unregistered layout-design | no       | action    ||----------|-----------|| of       | infrin-   || gement   | of        || unregis- |           || tered    |           || layout   |           || design  |           |17 subject to the other provisions of this act, the registration of a layout-design shall, if valid, give to the registered proprietor of layout-design the exclusive right to the use of the layout-design and to obtain relief in respect of infringement in the manner provided by this act rights conferred by registration explanation—for removal of doubts, it is hereby declared that the right conferred by the registration of a layout-design shall be available to the registered proprietor of that layout-design irrespective of the fact as to whether the layout design is incorporated in an article or not 18 (j) a registered layout-design is infringed by a person who, not being the registered proprietor of the layout-design or a registered user thereof,— infringement of layoutdesign(a) does any act of reproducing, whether by incorporating in a semiconductor integrated circuit or otherwise, a registered layout-design in its entirety or any part thereof, except such act of reproducing any part thereof which is not original within the meaning of sub-section (2) of section 7; (b) subject to the provisions of sub-section (5), does any act of importing or selling or otherwise distributing for commercial purposes a registered layout-design or a semiconductor integrated circuit incorporating such registered layout-design or an article incorporating such a semiconductor integrated circuit containing such registered layout-design for the use of which such person is not entitled under this act (2) notwithstanding any thing contained in section 17, sub-section (/) or sub-section (5), the performance of the act of reproduction referred to in clause (a) of sub-section (j), where such act is performed for the purposes of scientific evaluation, analysis, research or teaching shall not constitute the act of infringement within the meaning of that clause (3) where a person, on the basis of scientific evaluation or analysis of a registered layout-design, creates another layout-design which is original within the meaning of sub-section (2) of section 7, that person shall have the right to incorporate such another layout-design in a semiconductor integrated circuit or to perform any of the acts referred to in sub-section (/) or sub-section (5) in respect of such another layout-design and such incorporation or performance of any act shall not be regarded as infringement within the meaning of sub-section (j) (4) where a layout-design is created by the process of scientific evaluation or analysis of the registered layout-design as referred to in sub-section (3), the use of such layoutdesign by the proprietor of such registered layout-design shall be regarded as infringement within the meaning of sub-section (/) after the date of registration of such layout-design under this act (5) notwithstanding any thing contained in clause (6) of sub-section (/), the performance of any of the acts referred to in that clause by a person shall not be regarded as infringement within the meaning of that clause if such act is performed or directed to be performed in respect of a semiconductor integrated circuit incorporating a registered layout-design or any article incorporating such a semiconductor integrated circuit where such person does not possess any knowledge or has no reasonable ground to know while performing or directing to be performed such act in respect of such semiconductor integrated circuit or article that it incorporated a registered layout-design but after the time when such person has received notice of such knowledge, he may continue to perform or directing to be performed such act in respect of the stock on hand or ordered before such time and, then, he shall be liable to pay the proprietor of the registered layout-design a sum by way of royalty to be determined by negotiation between registered proprietor of the registered layout-design and that person or by the appellate board having regard to the benefit accrued to such person by performing or directing to be performed such act in respect of such semiconductor integrated circuit or article, as the case may be (6) where any other person purchases a semiconductor integrated circuit incorporating a registered layout-design or any article incorporating such a semiconductor integrated circuit referred to in sub-section (5) from a person referred to in that sub-section, then, such other person shall be entitled to the immunity from infringment in respect of that semiconductor integrated circuit or article, as the case may be, to the extent and in the manner as if the word "person" referred in that sub-section includes the word any other person referred in this sub-section (7) nothing contained in clause (b) of sub-section (/) shall be construed to constitute an act of infringement where any person performs any of the acts specified in that clause with the written consent of the registered proprietor of a registered layout-design or within the control of the person obtaining such consent, or in respect of a semiconductor integrated circuit incorporating a registered layout-design or any article incorporating such a semiconductor integrated circuit, that has been put on the market by or with the consent of the registered proprietor of such registered layout-design (8) notwithstanding anything contained in this act, where any person by application of independent intellect has created a layout-design which is similar to a registered layout-design and claim to be so created before the date of registration of the registered layout-design, then, any act of such person in respect of the layout-design so created shall not be the infringment of the registered layout-design registration 19 (j) in all legal proceedings relating to a layout-design registered under this act (including application under section 30), the original registration of the layout-design and all subsequent assignments and transmissions of layout-design shall be prima facie evidence of the validity thereof | to          | be    ||-------------|-------|| prima-facie |       || evidence    | of    || validity   |       |(2) in all legal proceedings as aforesaid, a registered layout-design shall not be held to be invalid on the ground that it was not a registrable layout-design under section 7 except upon evidence of originality and that such evidence was not submitted to the registrar before registration  chapter v assignment and transmission20 the person for the time being included in the register as proprietor of a layoutdesign shall, subject to the provisions of this act and to any right appearing from the register to be vested in any other person, have power to assign the layout-design, and | power      ||------------|| registered || proprietor |to give effectual receipts for any consideration for such assignment | to        | assign    ||-----------|-----------|| and       | give      || receipts |           |21 notwithstanding any thing in any other law to the contrary, a registered layoutdesign shall, subject to the provisions of this chapter, be assignable and transmissible whether with or without the goodwill of the business concerned assignability and transmissibility of registered layoutdesign conditions for assignment otherwise than in connection with the goodwill 22 where an assignment of a registered layout-design is made otherwise than in connection with the goodwill of business in which such layout-design has been or is used, the assignment shall not take effect unless the assignee, not later than the expiration of six months from the date on which the assignment is made or within such extended period, if any, not exceeding three months in the aggregate, as the registrar may allow, apply to the registrar for directions with respect to the advertisement of the assignment, and advertises it in such form and manner and within such period as the registrar may direct of a business 23 (1) where a person becomes entitled by assignment or transmission to a registered layout-design, he shall apply in the prescribed manner to the registrar to register his title, and the registrar shall, on receipt of the application and on proof of his title to registration of assignments and transmissionshis satisfaction, register him as the proprietor of the layout-design and shall cause particulars of the assignment or transmission to be entered on the register: provided that where the validity of an assignment or transmission is in dispute between the parties, the registrar may refuse to register the assignment or transmission until the rights of the party have been determined by a competent court (2) except for the purpose of an application before the registrar under sub-section (j) or an appeal from an order thereon, or an application under section 30 or an appeal from an order thereon, a document or instrument in respect of which no entry has been made in the register in accordance with sub-section (j), shall not be admitted in evidence by the registrar or the appellate board or any court in proof of title to the layout-design by assignment or transmission unless the registrar or the appellate board or the court, as the case may be, otherwise directs  chapter vi use of layout-design and registered usersregistered users 24, subject to the provisions of section 25, a person other than the registered proprietor of a layout-design may be registered as a registered user thereof 25 (1) where it is proposed that a person should be registered as a registered user of a layout-design, the registered proprietor and the proposed registered user shall jointly apply in writing to the registrar in the prescribed manner and every such application shall be accompanied by— registration as registered user (a) the agreement in writing or a duly authenticated copy thereof, entered into between the registered proprietor and the proposed registered user with respect to the permitted use of the layout-design; and (b) an affidavit made by the registered proprietor or by some person authorised to the satisfaction of registrar to act on his behalf— ft (i) giving particulars of the relationship, existing or proposed, between the registered proprietor and the proposed registered user, including particulars showing the degree of control by the proprietor over the permitted use which the relationship will confer and whether it is a term of their relationship that the proposed registered user shall be sole registered user or that there shall be any other restriction as to persons for whose registration as registered user application may be made; (ii) stating the conditions or restrictions, if any, proposed with respect to the place of permitted use or any other matter; ' (iii) stating whether the permitted use to be for a period or without limit of period, and, if for a period, the duration thereof; and (c) such further documents or other evidence as may be required by the registrar or as may be prescribed (2) where the requirement of sub-section (/) have been complied with, the registrar shall register the proposed registered user (3) the registrar shall issue notice in the prescribed manner of the registration of a person as a registered user to other registered users of the layout-design, if any(4) the registrar shall, if so requested by the applicant, take steps of securing that information given for the purposes of an application under this section (other than matters entered in the register) is not disclosed to rivals in trade 26 (1) without prejudice to the provisions of section 30, the registration of a person as registered user— power of registrar for cancellation of registration (a) may be cancelled by the registrar on application in writing in the prescribed manner of the registered proprietor or of the registered user or of any other registered user of the layout-design; as registered user, (b) may be cancelled by the registrar on the application in writing in the prescribed manner of any person on any of the following grounds, namely:— (i) that the registered user has used the layout-design otherwise than in accordance with the agreement under clause (a) of sub-section (j) of section 25; (ii) that the proprietor or the registered user misrepresented, or failed to disclose, some fact material to the application for registration which if accurately represented or disclosed would not have justified the registration of the registered user; (iii) that the circumstances have changed since the date of registration in such a way that at the date of such application for cancellation they would not have justified registration of the registered user; (iv) that the registration ought not to have been effected having regard to right vested in the applicant by virtue of a contract in the performance of which he is interested; (c) may be cancelled by the registrar on his own motion or on the application in writing in the prescribed manner by any person on the ground that any stipulation in the agreement between the registered proprietor and the registered user regarding the topographical dimensions of the layout-design is either not being enforced or is not being complied with; (d) may be cancelled by the registrar if the layout-design is no longer registered (2) the registrar shall issue notice in the prescribed manner in respect of every application under this section to the registered proprietor'and each registered user (not being the applicant) of the layout-design (3) the procedure for cancelling a registration shall be such as may be prescribed: provided that before cancelling of registration, the registered proprietor shall be given a reasonable opportunity of being heard power of registrar 27 (1) the registrar may, at any time during the continuance of the registration of the registered user, by notice in writing, require the registered proprietor to confirm to him within one month that the agreement filed under clause (a) of sub-section (j) of section 25 continues to be in force | to          | call    ||-------------|---------|| information |         || relating    | to      || agreement   |         || in          | respect || of          | regis-  || tered       | users  |(2) if the registered proprietor fails to furnish the confirmation within one month as required under sub-section (j), the registered user shall cease to be the registered user on the day immediately after the expiry of said period and the registrar shall notify the same 28 subject to any agreement subsisting between the parties, a registered user may make complaint before the competent criminal court for the infringement in his own name as if he were the registered proprietor right of registered user to take proceedings against infringement 29 nothing in this act shall confer on a registered user of a layout-design any assignable or transmissible right to the use thereof registered user not to have right of assignment or transmiss- explanation 1—the right of a registered user of a layout-design shall not deemed to have been assigned or transmitted within the meaning of this section in the following cases, namely:— ion (a) where the registered user being an individual enters into a partnership with any other person for carrying on the business concerned; but in any such case the firm may use the layout-design, if otherwise in force, only for so long as the registered user is a member of the firm; (b) where the registered user being a firm subsequently undergoes a change in its constitution; but in any such case the reconstituted firm may use the layout-design, if otherwise in force, only for so long as any partner of the original firm at the time of its registration as registered user, continues to be a partner of the reconstituted firm explanation il—for the purposes of explanation i, 'firm' has the same meaning as in the indian partnership act, 1932 9 of 1932 chapter vii rectification and correction of the registerpower to rectify the register 30 (1) any person aggrieved by the absence or omission from the register of any entry, or by any entry made in the register without sufficient cause, or by any entry wrongly remaining on the register, or by any error or defect in any entry in the register, may apply in the prescribed manner to the appellate board or to the registrar, and the appellate board or the registrar, as the case may be, may make such order for making, expunging or varying the entry as it may think fit (2) the appellate board or the registrar may in any proceedings under this section decide any question that may be necessary or expedient to decide in connection with the rectification of the register (3) the appellate board or the registrar, of its own motion, may , after giving notice in the prescribed manner to the parties concerned and after giving them an opportunity of being heard, make any order referred to in sub-section (/) (4) any order of the appellate board rectifying the register shall direct that notice of the rectification shall be served upon the registrar in the prescribed manner who shall upon receipt of such notice rectify the register accordingly 31 (1) the registrar may, on application made in the prescribed manner by the registered proprietor,— correction of register (a) correct any error in the name, address or description of the registered proprietor of a layout-design, or any other entry relating to the layout-design; (b) enter any change in the name, address or description of the person who is registered as proprietor of a layout-design; (c) cancel the entry of a layout-design on the register, and may make any consequential amendment or alteration in the certificate of registration, and for that purpose, may require the certificate of registration to be produced to him (2) the registrar may, on application made in the- prescribed manner by a registered yser of a layout-design, and after notice to the registered proprietor, correct any error, or enter any change, in the name, address or description of the registered user  chapter viii appellate board32 the central government shall, by notification in the official gazette, establish an appellate board to be known as the layout-design appellate board to exercise the jurisdiction, powers and authority conferred on it by or under this act establishment of layout- design appellate board composition of appellate board,33 (/) the appellate board shall consist of a chairman, vice-chairman, and such other members as the central government may deem fit and, subject to the other provisions of this act, the jurisdiction, powers and authority of the appellate board may be exercised by a bench thereof (2) subject to the other provisions of this act, a bench shall consist of one judicial member and one technical member and shall sit at such place as the central government may, by notification in the official gazette, specify (3) notwithstanding anything contained in sub-section (2), the chairman— (a) may, in addition to discharging the functions of the judicial member or technical member of the bench to which he is appointed, discharge the function of the judicial member or, as the case may be, the technical member, of any other bench; (b) may transfer a member from one bench to another bench; '() may authorise vice-chairman, the judicial member or the technical member appointed to one bench to discharge also the functions of the judicial member or the technical member, as the case may be, of another bench (4) where any benches are constituted, the central government may, from time to time, by notification, make provisions as to the distribution of the business of the appellate board amongst the benches and specify the matters which may be dealt by each bench explanation- for the removal of doubts, it is hereby declared that the expression "matter" includes an application or appeal under section 40, or section 42 (5) if the members of a bench differ in opinion on any point, they shall state the point or points on which they differ, and make a reference to the chairman who shall either hear the point or points himself or refer the case for hearing on such point or points by one or more of the other members and such point or points shall be decided according to the opinion of the majority of the members who have heard the case including those who first heard it 34 (1) a person shall not be qualified for appointment as chairman unless he— qualifications for appointment (a) is, or has been, a judge of a high court; or (b) is, for at least two years, held the office of a vice-chairman as chair man, vice- chairman, (2) a person shall not be qualified for appointment as a vice-chairman, unless he— or other members (a) has, for atleast two years, held the office of a judicial member or a technical member; or (b) has been a member of the indian legal service and has held a post in grade i of that service or any higher post for at least five years (3) a person shall not be qualified for appointment as a judicial member unless he— (a) has been a member of the indian legal service and has held the post in grade 1 of that service for atleast three years; or (b) has, for atleast ten years, held a civil judicial office (4) a person shall not be qualified for appointment as a technical member, unless he possesses a master's degree in physics or bachelor's degree in electronics engineering or electrical engineering or computer engineering from an university or institution established under law for the time being in force and has held a post equivalent to the the post of joint secretary to the government of india or any higher post for at least five years and possesses at least five years' experience in the area of semiconductors (5) subject to the provisions of sub-section (6), the chairman, vice-chairman and every other member shall be appointed by the president of india (6) no appointment of a person as the chairman shall be made except after consultation with the chief justice of india 35 the chairman, vice-chairman or other members shall hold office as such 'for a term of five years from the date on which he enters upon his office or until he attains,— (a) in the case of chairman and vice-chairman, the age of sixty-five years; and (b) in the case of member, the age of sixty-two years, term of office of chairman, vice- chairman and members 'whichever, is earlier 36 (1) in the event of occurrence of any vacancy in the office of the chaifman by vice-chairman reasons of his death, resignation or otherwise, the vice-chairman and in his absence the senior-most member shall act as chairman until the date on which a new chairman, appointed in accordance with the provisions of this act to fill such vacancy, enters upon his office or seniormost member to act as chairman or discharge his function (2) when the chairman is unable to discharge his functions owing to his absence, illness or any other cause, the vice-chairman and in his absence the senior-most member shall discharge the functions of the chairman until the date on which the chairman resumes his duty in certain circumstances 37 (1) the salaries and allowances payable to, and other terms and conditions of service (including pension, gratuity and other retirement benefits) of, the chairman, vice-chairman and other members shall be such as may be prescribed salaries, allowances and other terms and conditions (2) notwithstanding anything contained in sub-section (/), a person who, immediately before the date of assuming office as the chairman, vice-chairman or other member, was in service of government shall be deemed to have retired from service on the date on which he enters upon as the chairman, vice-chairman or other member of service of chairman, vice- chairman and other members 38 (j) the chairman, vice-chairman and any other member may, by notice in writing under his hand addressed to the president of india, resign his office: resignation and removal provided that the chairman, vice-chairman or any other member shall, unless he is permitted by the president of india to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is earlier (2) the chairman, vice-chairman or any other member shall not be removed from his office except by an order by the president of india on the ground of proved misbehaviour or incapacity after an enquiry made by a judge of the supreme court in which the chairman, vice-chairman or other member has been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges (3) the central government may, by rules, regulate the procedure for the investigation of misbehaviour or incapacity of the chairman, vice-chairman or other member referred to in sub-section (2) staff of appellate board39, (1) the central government shall determine the nature and categories of the offices and other employees required to assist the appellate board in the discharge of its functions and provide the appellate board with such officers and other employees as it may think fit (2) the salaries and allowances and conditions of service of the officers and other employees of the appellate board shall be such as may be prescribed (3) the officers and other employees of the appellate board shall discharge their functions under the general superintendence of the chairman in the manner as may be prescribed 40 (1) a registered proprietor of the registered layout-design may make an application application to the appellate board for determination of royalty under sub-section (5) of section 18 to the appellate board to determine royalty (2) every application under sub-section (/) shall be in such form and be accompanied by such affidavits, documents or any other evidence and by such fee in respect of the filing of such application and by such other fees for the service or execution of processes as may be prescribed (3) on receipt of an application under sub-section (/), the appellate board shall, after giving notice to the opposite party to file opposition within the prescribed time and manner and after giving opportunity of being heard to the applicant and the opposite party, dispose of the application (4) an order or decision made by the appellate board in disposing of the application under sub-section (3) shall be executable by a civil court having local jurisdiction as if it were a decree made by that court power of the board to cancel registration 41 (1) any person may make an application, in the prescribed form accompanied with prescribed fee, to the appellete board for cancellation of the registration of a layout-design registered under this act or registration of assignment or transmission relating thereto, as the case may be, on the ground that— (a) in the case of the registration of a layout-design, the layout-design is prohibited for being registered under section 7 ; or (b) in case of the registration of assignment or transmission relating to a registered layout-design, such assignment or transmission is contrary to any provision of the law for the time being in force (2) the appellete board shall, on receipt of an application under sub-section (1), give notice to the opposite parties in the prescribed manner and after giving them an opportunity of being heard, make such order as it may deem fit regarding cancellation of registration: provided that where the ground of cancellation has been established with respect only to a part of a layout-design, the board shall cancel only such part and the remaining part of the layout-design if capable of performing as a semiconductor integrated circuit shall be retained as registered on the register in the name of the registered proprietor of such layout-design (3) any cancellation of the registration of a layout-design either in whole or in part under sub-section (2) shall be deemed to be effective on the date from which the period of ten years referred to in section 15 is countable in respect of that layout-design (4) the appellete board shall, without delay after making any order of cancellation under sub-section (2), send a copy of such order to the registrar who shall correct the register to give effect to such order 42 (1) any person aggrieved by an order or decision of the registrar under this act, | appeal    ||-----------|| appeltate || board    |or the rules made thereunder may prefer an appeal to the appellate board within three months from the date on which the order or decision sought to be appealed against is communicated to such person preferring the appeal (2) no appeal shall be admitted if it is preferred after the expiry of the period specified under sub-section (/): provided that an appeal may be admitted after the expiry of the period specified therefor, if the appellant satisfies the appellate board that he had sufficient cause for not preferring the appeal within the specified period (3) an appeal to the appellate board shall be in the prescribed form and shall be verified in the prescribed manner and shall be accompanied by a copy of the order or decision appealed against and by such fees as may be prescribed 5 of 1908 43 (1) the appellate board shall not be bound by the procedure laid down in the procedure code of civil procedure, 1908 but shall be guided by principles of natural justice and, and powers subject to the provisions of this act and the rules made thereunder, the appellate board of appellate shall have powers to regulate its own procedure including the fixing of places and times board of its hearing (2) the appellate board shall have, for the purpose of discharging its functions under 5 of 1908 this act, the same powers as are vested in a civil court under the code of civil procedure, 1908 while trying a suit in respect of the following matters, namely:— (a) receiving evidence; (b) issuing commissions for examination of witnesses; (c) requisitioning any public record; and (d) any other matter which may be prescribed 43 of 1860 (3) any proceeding before the appellate board shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purpose of section 196 of the indian penal code, and the appellate board shall be deemed to be a civil court for all the purposes of section 195 and chapter xxvi of the code of criminal procedure, 1973 2 of 1974 44, no court or other authority shall have or, be entitled to, exercise any jurisdiction, bar of powers or authority in relation to the matters referred to in sub-section (j) of section jurisdic- 40 or sub-section (/) of section 42 tion of / courts, etc 45 on ceasing to hold office, the chairman, vice-chairman or other members shall bar to not appear before the appellate board or the registrar appear before appellate board 46 notwithstanding anything contained in any other provisions of this act or in any conditions other law for the time being in force, no interim order (whether by way of injunction as to or stay or any other manner) shall be made on, or in any proceedings relating to, an making of appeal unless— 'interim order (a) copies of such appeal and of all documents in support of the plea for such interim order are furnished to the party against whom such appeal is made or proposed to be made; and (b) opportunity is given to such party to be heard in the matter 47, on the application of any of the parties and after notice to the parties, and after chairman hearing such of them as he may desire to be heard, or on his own motion without such notice, the chairman may transfer any case pending before one bench, for disposal, to any other bench to transfer cases from one bench to another 48 (/) an application for rectification of the register made to the appellate board under section 30 shall be in such form as may be prescribed procedure for application for rectifica- (2) a certified copy of every order or judgement of the appellate board relating to a registered layout-design under this act shall be communicated to the registrar by the board and the registrar shall give effect to the order of the board and shall, when so directed, amend the entries in, or rectify, the register in accordance with such order tion, etc before appellate board 49, (1) the registrar shall have the right to appear and be heard— appearance of registrar in legal proceedings, (a) in any legal proceedings before the appellate board in which the relief sought includes alteration or rectification of the register or in which any question relating to the practice of the semiconductor integrated circuit layout-design registry is raised; (b) in any appeal to the board from an order of the registrar on an application for registration of a layout-design— (i) which is not opposed, and the application is either refused by the registrar or is accepted by him subject to any amendments or modifications, or (ii) which has been opposed and the registrar considers that his appearance is necessary in the public interest, and the registrar shall appear in any case if so directed by the board (2) unless the appellate board otherwise directs, ihe registrar may, in lieu of appearing, submit a statement in writing signed by him, giving such particulars as he thinks proper of the proceedings before him relating to the matter in issue or of the grounds of any decision given by him affecting it, or of the practice of the semiconductor integrated circuits layout-design registry in like cases, or of other matters relevant to the issues and within his knowledge as registrar, and such statement shall be evidence in the proceeding registrar | to       | refer    ||----------|----------|| certain  |          || dispmtes | to       |50 if any question arises in any proceedings before registrar, whether a layoutdesign has been commercially exploited for more than two years anywhere in a convention country for the purpose of registration of such layout-design under this act, the registrar shall refer such question to the appellate board, and the decision of the board thereon shall be final | the    | board    ||--------|-----------|| power  | of        || the    | board     |51 (/) notwithstanding anything contained in this act, the appellate board may on an application made in the prescribed manner before it on behalf of the government or by any person authorised by the government and after giving notice of such application | to      ||---------|| certain || uses   |to the registered proprietor of a layout-design and providing the opportunity of being heard to the parties concerned permit the use of such registered layout-design by the government or by such person so authorised, as the case may be, subject to any or all of the following conditions as the board deems fit under the circumstances of such use, namely:—(a) that the use of the layout-design shall be for non-commercial public purposes or for the purposes relating to national emergency or of extreme public urgency; (6) that the duration of the use of the layout-design shall be limited for a period specified by the board; (c) that the use of the layout-design shall be non-assignable and non-transmissible; (d) that the use of the layout-design shall be to the extent which the board deems necessary to remedy the anti-competitive practice ; (e) that the use of the layout-design shall be predominantly for the supply of semiconductor integrated circuits or articles incorporating semiconductor integrated circuits in domestic market of india: provided that the board shall not permit the use of a registered layout-design, by any such person authorised by the government, under this sub-section unless the board is satisfied that such person so authorised has made efforts to enter into agreement with the registered proprietor of such layout-design on reasonable commercial terms and conditions for permitted use of such layout-design and such efforts had not been successful within the prescribed period: provided further that the first proviso shall not be applicable in a case where the person so authorised produces to the board a certificate issued by the government to the effect that such use is required due to national emergency or any other circumstances which the government considers to be of extreme urgency or of public non-commercial use (2) the appellate board shall, while granting the permission for the use of a registered layout-design under sub-section (j), determine the amount of royalty to be paid by the government or the person authorised by the government, as the case may be, to the registered proprietor of such layout-design for such permitted use (3) the appellate board may, on the application of the registered proprietor of a layout-design referred to in sub-section (/), may review the permission granted under that sub-section and, after giving notice and opportunity of hearing to the parties concerned in the prescribed manner, cancel or amend such permission if the board is satisfied that any of the conditions subject to which the permission was granted has not been observed or the circumstances which led to the granting of such permission has ceased to exist or substantially altered 52 in all proceedings under this act before the appellate board the costs of the costs of registrar registrar shall be in the discretion of the board, but the registrar shall not be ordered : to pay the costs of any of the parties in proceedings before appellate board appeal,53 (1) any person aggrieved by any decision or order of the appellate board under this act may, within the prescribed period appeal to the high court within whose jurisdiction head office or the branch office of the semiconductor integrated circuits layout-design registry against the decision or order of which the appeal arises is situated (2) every such appeal shall be preferred by petition in writing and shall be in such form and shall contain such particulars as may be prescribed (3) subject to the provisions of this act and the rules made thereunder, the provisions 5 of 1908of the code of civil procedure, 1908 shall apply to appeals before a high court under this act powers of high courts 54 the high court may make rules consistent with this act as to the conduct and procedure of al] proceedings under this act before 1t to make rules transitional provisions 55 notwithstanding anything contained in this act, till the establishment of the appellate board under section 32, the intellectual property appellate board establishment under section 83 of the trade marks act, 1999 shall exercise the jurisdiction, powers and authority conferred on the appellate board under this act subject to the modification that in any bench of such intellectual property appellate board constituted for the purposes of this section, for the technical member referred to in sub-section (2) of section 84 of the trade marks act, 1999, the technical member shall be appointed under this act and he shall be deemed to be the technical member for constituting the bench under said sub-section (2) of section 84 for the purposes of this act  chapter ix offences, penalties and procedure56 any person who contravenes any of the provisions of section 18 shall be punishable with imprisonment for a term which may extend to three years, or with fine which shall not be less than fifty-thousand rupees but may extends to ten lakhs rupees, or with both | penalty      | for     ||--------------|---------|| infringement |         || of           | layout- || design      |         |57 (1) no person shall make any representation with respect to a layout-design not being a registered layout-design, to the effect that it is a registered layout-design | penalty      ||--------------|| falsely      || representing |(2) if any person contravenes any of the provision of sub-section (/), he shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to fifty thousand rupees, or with both | a           | layout-    ||-------------|------------|| design      | as         || registered |            |(3) for the purposes of this section, the use in india in relation to a layout-design of the word "registered", or of any other expression referring whether expressly or impliedly to registration, shall be deemed to import a reference to registration in the register, except— (a) where that word or other expression, is used in direct association with other words delineated in characters at least as large as those in which that word or other expression is delineated and indicating that the reference is to registration as a layoutdesign under the law of a country outside india being a country under the law of which the registration referred to is in fact in force; or (b) where that other expression is of itself such as to indicate that the reference is to such registration as is mentioned in clause (a); or (c) where that word is used in relation to a layout-design registered as a layout design under the law of a country outside india and in relation solely to such layoutdesign 58 if any person uses on his place of business, or on any document issued by him, or otherwise, words which would reasonably lead to the belief that his place of business | penalty    ||------------|| improperly || describing |is, or is officially connected with, the semiconductor integrated circuits layout-design registry, he shali be punishable with imprisonment for a term which may extends to six months, or with fine, or with both | a             | place     | of    ||---------------|-----------|-------|| business      | as        |       || connected     |           |       || with          | the       |       || semicon-      |           |       || ductor        |           |       || integrated    |           |       || circuits      |           |       || layout-       |           |       || design        |           |       || registry     |           |       || penalty       | for       |       || falsification |           |       || of            | entries   | in    || the           | register |       |59 if any person makes, or causes to be made, a false entry in the register, or a writing falsely purporting to be a copy of an entry in the register, or produces or tenders, or causes to be produced or tendered, in evidence any such writing, knowing the entry or writing to be false, he shall be punishable with imprisonment for a term which may extend to two years, or with fine, or with both forfeiture of goods 60 (1) where a person is convicted of an offence under section 56, the court convicting him may direct the forfeiture to government of all goods and things by means of, or in relation to, which the offence has been committed (2) when a forfeiture is directed on a conviction and an appeal lies against the conviction, an appeal shall lie against the forfeiture also (3) when a forfeiture is directed on a conviction, the court, before whom the person is convicted, may order any forfeited articles to be destroyed or otherwise disposed of as the court thinks fit 61 where a person accused of an offence under section 56 proves— (a) that in the case which is the subject of the charge he was so employed that it relates to the duty of his employment, and was not interested in the profit accruing from such commission of offence except the duty of his employment; and exemption of certain persons employed in ordinary course of business (b) that, having taken all reasonable precautions against committing the offence charged, he had, at the time of commission of the alleged office, no reason to suspect the genuineness of the registered layout-design or a semiconductor integrated circuit in which such layout-design is incorporated; and (c) that, on demand made by or on behalf of the prosecutor, he gave all the information in his power with respect to the commission of such offence, he shall be acquitted 62 (1) where the offence charged under section 56 is in relation to a registered layout-design and the accused pleads that the registration of the layout-design is invalid, the following procedure shall be followed:— procedure where invalidity of registration is pleaded by the accused(a) if the court is satisfied that such defence is prima facie tenable, it shall not proceed with the charge but shall adjourn the proceeding for three months from the date on which the plea of accused is recorded to enable the accused to file an application before the appellate board under this act, for the rectification of the register on the ground that the registration is invalid; (b) if the accused proves to the court that he has made such application within the time so limited or within such further time as the time court may for sufficient cause may allow, the further proceedings in the prosecution shall stand stayed till the disposal of such application for rectification; (c) if within a period of three months or within such extended time as may be allowed by the court the accused fails to apply to the appellate board for rectification of the register, the court shall proceed with the case as if the registration were valid (2) where before the institution of a complaint of an offence referred to in subsection (1), any application for the rectification of the register concerning the layoutdesign in question on the ground of invalidity of the registration thereof has already been properly made to and is pending before the appellate board or the registrar, the court shall stay the further proceedings in the prosecution pending the disposal of the application aforesaid and shall determine the charge against the accused in conformity with the result of the application for rectification in so far as the complainant relies upon the registration of his layout-design offences by companies, 63 (j) if the person committing an offence under this act is a company, the company as well as every person in charge of, and responsible to, the company for the conduct of its business at the time of the commission of the offence shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly; provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence (2) notwithstanding anything contained in sub-section (j), where an offence under this act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or that the commission of the offence is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly explanation—for the purposes of this section— (a) "company" means any body corporate and includes a firm or other association or individuals; and (b) "director", in relation to a firm, means a partner in the firm 64 no court shall take cognizance— cognizance of certain offences (a) of an offence under section 56 or section 57 except on the complaint in writing made by the registered proprietor or the registered user of a layout-design in respect of which the offence has been committed; (b) of an offence under section 58 or section 59 except on complaint in writing made by the registrar or any officer authorised by him in writing 65 in any prosecution under this act, the court may order such costs to be paid by the accused to the complainant, or by the complainant to the accused, as the court deemed reasonable having regard to all the circumstances of the case and the conduct | costs        | of    ||--------------|-------|| defence      | or    || prosecution |       || of           |       || the          |       || parties     |       || costs        |       || so           |       || awarded      |       || shall be     |       || recoverable  |       || as           |       || if           |       || they         |       || were         |       || a            |       || fine        |       |information 66 an officer of the government whose duty it is to take part in the enforcement of the provisions of this chapter, shall not be compelled in any court to say whence he got any information as to the commission of any offence against this act | as         | to       ||------------|----------|| commission |          || of         | offence || punishment |          || of         | abetment || in         | india    |67 if any person, being within india, abets the commission, without india, of any act which, if committed in india, would, under this act, be an offence, he may be tried for such abetment in any place in india in which he may be found, and be punished therefor with the punishment to which he would be liable if he had himself committed in that place the act which he abetted | acts    | done    ||---------|---------|| out     | of      || india  |         | chapter x miscellaneous68 notwithstanding anything contained in this act, the registrar shall— protection of security in india (a) not discharge any information relating to the registration of a layout-design or any application relating to the registration of a layout-design under this act which he considers prejudicial to the interest of the security of india; and (b) take action for the cancellation of registration of a layout-design registered under this act which the central government may, by notification in the offical gazette, specify in the interest of the security of india explanation—for the purposes of this section, the expression "security of india" means any action necessary for the security of india which relates to the use, of a layout-design or a semiconductor integrated cicuit incorporating a layout-design or an article incorporating such semiconductor integrated circuit, directly or indirectly for the purposes of war or military establishment or for the purposes of war or other emergency in international relations: protection 69 no suit or other legal proceedings shall lie against any person in respect of anything which is in good faith done or intended to be done in pursuance of this act | of    | action    ||-------|-----------|| taken | in        || good  | faith    |70 every person appointed under this act and every member of the appellate board shall be deemed to be a public servant within the meaning of section 21 of the indian penal code 45 of 1860 certain persons to be public servants 71 where a registered layout-design, or a semiconductor integrated circuit in which a registered layout-design is incorporated, or an article incorporating such a semiconductor integrated circuit is sold or has been contracted for sale, the seller shall be deemed to warrant that the registration, of such layout-design or the layout-design so incorporated is genuine within the meaning of this act unless the contrary is expressed implied warranty on sale of layoutdesign, etcin writing signed by or on behalf of the seller and delivered at the time of the sale or contract to sell of such layout-design, or semiconductor integrated circuit or article, as the case may be, and accepted by the buyer ' 72 in all proceedings under this act before the registrar,— powers of registrar (a) the registrar shall have all the powers of a civil court for the purposes of receiving evidence, administering oaths, enforcing the attendance of witnesses, compelling the discovery and production of documents and issuing commissions for the examination of witnesses; (b) the registrar may, subject to any rules in this behalf made under section 96 make such orders as to costs as he considers reasonable, and any such order shall be executable as a decree of a civil court: (c) the registrar may, on an application made in the prescribed manner, review his own decision | exercise    | of    ||-------------|-------|| discretion- |       || ary         | power || by          |       || registrar  |       |73 subject to the provisions of section 76, the registrar shall not exercise any discretionary or other power vested in him by this act or the rules made thereunder adversely to a person applying for the exercise of that power without (if so required by that person within the prescribed time) giving to the person an opportunity of being heard 74, in any proceeding under this act before the registrar, evidence shall be given by affidavit: evidence before registrar provided that the registrar may, if he thinks fit, take oral evidence in lieu of, or in addition to, such evidence by affidavit |             | death    | of    ||-------------|----------|-------|| party       | to       | a     || proceeding |          |       |75 if a person who is a party to a proceeding under this act (not being a proceeding before the appellate board or a court) dies pending the proceeding, the registrar may, on request, and on proof to his satisfaction of the transmission of the interest of the deceased person, substitute in the proceeding his successor in interest«in his place, or, if the registrar is of opinion that the interest of the deceased person is sufficiently represented by the surviving parties, permit the proceeding to continue without the substitution of his successor in interest extension of time 76 (1) if the registrar is satisfied, on application made to him in the prescribed manner and accompanied by the prescribed fee, that there is sufficient cause for extending the time for doing any act (not being a time expressly provided in the act), whether the time so specified has expired or not, he may, subject to such conditions as he may think fit to impose, extend the time and inform the parties accordingly (2) nothing in sub-section (7) shall be deemed to require the registrar to hear the parties before disposing of an application for extension of time and no appeal shall lie from any order of the registrar under this section abandonment 77 where, in the opinion of the registrar, an applicant is in default in the prosecution of an application filed under this act, the registrar may, by notice require the applicant to remedy the default within a time is specified and after giving him, if so, desired, an opportunity of being heard, treat the application as abandoned, unless the default is remedied within the time specified in the notice 78 (1) the registrar may, on application made to him in the prescribed manner by any person who proposes to apply for the registration of a layout-design, give advice as preliminary advise by to whether the layout-design appears to him prima facie to be originalthe registrar (2) if, on an application for the registration of a layout-design as to which the registrar has given advice as aforesaid in the affirmative made within three months after the advice was given, the registrar, after further investigation or consideration, gives notice, to the applicant of objection on the ground that the layout-design is not original, the applicant shall be entitled, on giving notice of withdrawal of the application within the prescribed period, to have repaid to him any fee paid on the filing of the application 79 (1) in every proceeding under chapter vii or under section 42, every registered user of a layout-design, who is not himself an applicant in respect of any proceeding under that chapter or section shall be made a party to the proceeding registered user to be impleaded (2) notwithstanding anything contained in any other law, a registered user so made | in      ||---------|| procee- || dings  |a party to the proceeding shall not be liable for any costs unless he enters an appearance and takes part in the proceeding, 80 (1) a copy of any entry in the register or of any document referred to in subsection (/) of section 87 purporting to be certified by the registrar and sealed with the seal of the semiconductor integrated circuit layout-design registry shall be admitted | evidence    | of    ||-------------|-------|| entries     | in    || register,   |       |in evidence in all courts and in all proceedings without further proof or production of the original | etc,      | and    ||------------|--------|| things     | done   || by         | the    || registrar |        |(2) a certificate purporting to be under the hand of the registrar as to any entry, matter or thing that he is authorised by this act or the rules to make or do shall bé prima facie evidence of the entry having been made, and of the contents thereof, or of the matter or things having been done or not done registrar and other officers not compellable to produce register, etc 81 the registrar or any other officer of the semiconductor integrated circuits layout-design registry shall not, in any legal proceedings to which he is not a party, be compellable to produce the register or any other document in his custody, the contents of which can be proved by the production of a certified copy issued under this act or to appear as a witness to prove the matters therein recorded unless by order of the court made for special cause certificate of validity 82 if in any jegal proceeding for rectification of the register before the appellate board a decision is on contest given in favour of the registered proprietor of the layoutdesign on the issue as to the validity of the registration of the layout-design, the appellate board may grant a certificate to that effect, and if such a certificate is granted, then, in any subsequent legal proceedings in which the said validity comes into question, the said proprietor on obtaining a final order or judgment in his favour affirming validity of the registration of the layout-design shall, unless the said final order or judgment for sufficient reason directs otherwise, be entitled to his full cost, charges and expenses as between legal practitioner and client 83 an address for service stated in an application or notice of opposition shall, for address for service the purposes of the application or notice of opposition, be deemed to be the address of the applicant or opponent, as the case may be, and all documents in relation to the application or notice of opposition may be served by leaving them at or sending them by post to the address for service of the applicant or opponent, as the case may be agents84 where, by or under this act, any act, other than the making of an affidavit, is required to be done before the registrar by any person, the act may, subject to the rules made in this behalf, be done, instead of by that person himself, by a person duly authorised in the prescribed manner, who is— (a) a legal practitioner, or (b) a person registered in the prescribed manner as a layout-design agent, or (c) a person in the sole and regular employment of the principal 85 if an agent or a representative of the proprietor of a registered layout- -design, without authority uses or attempts to register or registers the layout-design in his own name, the proprietor shall be entitled to oppose the registration applied for or secure its cancellation or rectification of the register so as to bring him as the registered proprietor of the said layout-design by assignment in his favour: layoutdesign registered by an agent or representative without authority provided that such action shall be taken within three years of the registered proprietor of the layout-design becoming aware of the conduct of the agent or representative indexes 86 there shall be kept under the direction and supervision of the registrar— (a) an index of registered layout-designs, (b) an index of layout-designs in respect of which applications for registration are pending, (c) an index of the names of the proprietors of registered layout-designs, and (d) an index of the names of registered users 87 (7) save as otherwise provided in sub-section (4) of section 25,— (a) the register and any document upon which any entry in the register is based; documents open to public inspection (b) every notice of opposition to the registration of a layout-design application for rectification before the registrar, counter-statement thereto, and any affidavit or document filed by the parties in any proceedings before the registrar; (c) the indexes mentioned in section 86 and such other documents as the central government may, by notification in the official gazette, specify; shall, subject to such conditions as may be prescribed, be open to public inspection at the semiconductor integrated circuits layout-design registry (2) any person may, on an application to the registrar and on payment of such fees as may be prescribed, obtain a certified copy of any entry in the register or any document referred to in sub-section (/) 88 the central government shall cause to be placed before both houses of parliament once a year a report respecting the execution by or under the registrar of reports of registrar this act to be placed before parliament fees and surcharge 89 (1) there shall be paid in respect of applications and registration and other matters under this act such fees and surcharge as may be prescribed by the central government (2) where a fee is payable in respect of the doing of an act by the registrar, the registrar shall not do that act until the fee has been paid(3) where a fee is payable in respect of the filing of a document at the semiconductor integrated circuits layout-design registry, the document shall be deemed not to have been filed at the registry until the fee has been paid | savings    | in    ||------------|-------|| respect    | of    || chapter    | ix,   |90, nothing in chapter ix shall be construed so as to render liable to any prosecution or punishment any servant of a master resident in india who in good faith acts in obedience to the instructions of such master, and, on demand made by or on behalf of prosecutor, has given full information as to-his master and as to the instructions which he has received from his master 16 of 1908 declaration 91 notwithstanding anything contained in the registration act, 1908, no document declaring or purporting to declare the ownership or title of a person to a layout-design other than a registered layout-design shall be registered under that act as to ownership | of           | layout-    ||--------------|------------|| design       | not        || registerable |            || wader        | the        || registration |            || act,         | 1908      |92, the provisions of this act shall be binding on the government government to be bound convention countries 93 with a view to the fulfilment of a treaty, convention or arrangement with any country outside india which affords to citizens of india similar privileges as granted to its own citizens, the central government may,,by notification in the official gazette, specify such country to be a convention country for providing the citizens of such convention country the similar privileges as granted to the citizens of india under this act explanation—for the purposes of this section "couatry" includes any group of countries or union of countries or inter-governmental organisation and the expression "convention country" shall be construed accordingly provision 94, where any country specified by the central government in this behalf by notification in the official gazette under section 93 does not accord to citizens of india the same rights in respect of registration and protection of layout-design as it accords as to reciprocity to its own nationals, no national of such country shall be entitled, either solely or jointly with any other person,— (a) to apply for the registration of, or be registered as the proprietor of, a layoutdesign; (b) to be registered as the assignee of the proprietor of a registered layout-design; or (c) to apply for registration or be registered as a registered user of a layout-design under section 25 power of central government 95 (1) if any difficulty arises in giving effect to the provisions of this act, the central government may, by order published in the official gazette, make such provisions not inconsistent with the provisions of this act as may appear to be necessary for removing the difficulty: to remove difficultiesprovided that no order shall be made under this section after the expiry of five years from the commencement of this act (2) every order made under this section shall, as soon as may be after it is made, be laid before each house of parliament power to make rules 96 (1) the central government may, by notification in the official gazette, make rules to carry out the provisions of this act (2) in particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the other matters relating to the registered layout-designs to be entered in the register under sub-section (1) of section 6; (b) the manner of applying to the registrar for registration under sub-section 91) of section 8; (c) the manner of advertising the application under sub-section (1) of section 10; (d) the manner of notifying the correction or amendment in application under subsection (2) of section 10; (e) the manner of making application, the fee to be paid and the manner of giving notice under sub-section (/) of section 11; (f) the manner of sending counter statement under sub-section (/) of section 11; (g) the manner of submitting evidence under sub-section (4) of section 11; (h) the form of issuing certificate under sub-section (2) of section 13; (i) the manner of giving notice under sub-section (3) of section 13; (j) the manner to apply to register the title under sub-section (1) of section 23; (k) the manner of applying to registrar under sub-section (1) of section 25; (1) the document to be prescribed under clause (c) of sub-section (1) of section 25; (m) the manner of issuing notice under sub-section (3) of section 25; (n) the manner of application under clause (a) of sub-section (1) of section 26; (o) the manner of application under clause (b) of sub-section (1) of section 26; (p) the manner of application under clause (c) of sub-section (1) of section 26; (q) the manner of issuing notice under sub-section (2) of section 26; (r) the procedure of cancelling registration under sub-section (3) of section 26; (s) the manner of applying to the appellate board under sub-section (1) of section 30; (t) the manner of giving notice under sub-section (3) of section 30; -(u) the manner of serving notice under sub-section (4) of section 30; (v) the manner of making application under sub-section (1) of section 31; (w) the manner of making application under sub-section (2) of section 31: (x) the salaries and allowances payable and other terms and conditions of service of the chairman, vice-chairmen and other members under sub-section (1) of section 37; (y) the procedure for investigation of misbehaviour or incapacity of the chairman, vice-chairman and other members under sub-section (3) of section 38; (z) the salaries and allowances and other conditions of service of the officer and other employees of the appellate board under sub-section (2) of section 39; (za) the manner of general superintendence by the chairman under sub-section (3) of section 39; (zb) the form of application, the affidavit documents, other evidence, fee in respect of the filing of such application and other fees for the services or execution of process to be accompanied therewith under sub-section (2) of section 40; (zc) the time limit for filing the opposition under sub-section (3) of section 40; (zd) the form of making application and the fee to be accompanied therewith under sub-section (1) of section 41; (ze) the manner of giving notice under sub-section (2) of section 41, (zf) the form of appeal, the manner of such verification of such appeal and the fee to be accompanied therewith under sub-section (3) of section 42; (zg) any other matter to be prescribed under clause (d) of sub-section (2) of section 43; (zh) the form of application under sub-section (1) of section 48; (zi) the manner of making application under sub-section (1) of section $1; (zj) the period to be prescribed under first proviso to sub-section (1) of section 51; (zk) the manner of giving notice and opportunities of hearing to the parties hearing under sub-section (3) of section 51; (zl) the period to be prescribed under sub-section (1) of section 53; (zm) the form of petition and particular to be contained therein under sub-section (2) of section 53; (zn) the time to be prescribed under section 73; (zo) the manner of making application and the fee to be accompanied therewith under sub-section (1) section 76; (zp) the manner of making application under sub-section (1) section 78;(zq) the period to be prescribed under sub-section (2) section 78; (zr) the manner of authorising a person under section 84; (zs) the manner of registering a person as a layout-design under clause (d) of under section 84; (zt) the conditions to be prescribed under sub-section (1) of section 87; (zu) the fee payable under sub-section (2) of section 87; (zv) the fees and the surcharge to be paid under sub-section (1) of section 89; (3) every rule made by the central government under this act shall be laid, as soon as may be after it is made, before each house of parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both houses agree in making any modification in the rule or both houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of any thing previously done under that rule statement of objects and reasonselectronics and information technology ts one of the fastest growing sectors that has played a significant role in world economy this 1s primarily due to the advancements in the field of electronics, computers and telecommunicaton microelectronics- which primarily tefers to integrated circuits (ics) ranging from small scale integration (ssi) to very large scale integration (vlsi) on a semconductor chip - has nghtly been recognized as a core, strategic technology world-over, especially for information technology (it) based society design of ics requires considerable expertise and several hundreds of man years of effort depending on the complexity such efforts culminate into the lay-outs for ics which are used for fabricating the ics in the fabncation plants to encourage continued mvestments in r & d to result in technological advancements in the field of microelectronics protection of intellectual property rights (ipr) embedded in the layout designs 1s of utmost mmportance 2 the existing practices of providing protection through the methods of copy right, patents do not appropnately accommodate the requirements of intellectual property rights protection for the layout-designs of integrated circuits this 1s because in the context of layout designs the concept of "onginality" 1s of utmost significance, whether it 1s a "novelty or not" while the patent law requires that the idea should be onginal as well as novel, the copynght law 1s too general to accommodate the onginal ideas of scientific creation of layout-designs of integrated circuits hence the requirement of this bill the necessity for providing protection for layout-designs of integrated circuits arises to reward and encourage an adequate level of mvestment of human financial and technological resources 3 the majonty of the countnes that attach sigmficance to protection of intellectual property rights im the semiconductor integrated circuits provides for a sur generis (of tts kind, unique) protection of layout-designs of integrated circuits which 1s usually contamed 1 a separate act the world trade organisation (wto) agreement which was rahfied by india has_ provisions for trade related intellectual property rughts (trips) with regard to seting up of standards concermng avatlability, scope and use of intellectual property rughts geographical indications layout-design of integrated cucuits etc developing nations have a transition penod of 5 years with effect from 1-1-1995 to align then laws in accoidance with the provisions of trips agreement as one of the signatories of wto, india 1s also expected to align its laws in accordance with the trips agreement and formulate suitable legislation 4 the semiconductor integrated circuit layout-design bill provides, inter-alia, for protection of semiconductor integrated circuits layout-designs by process of registration, mechamsm for distinguishing layout-designs which can be protected, rules to prohubit registration of layout-designs which are not onginal and/or which have been commercially exploited, period for protection, provision with regard to infringement, payment of royalty for registered layout-design, provisions for dealing with willful infimmgement by way of puushment, appointing a registrar for registering the layout designs and mechamsin of appellate boaid 5 the bill seeks to acmeve the above objectives pramod mahajan, new delhi; the 15" december, 1999  notes on clausesclause 1—this clause provides for appointment of different dates for commencement for different provisions of the act because some of the provisions like setting up of appellate board and necessary mechanism will have to be provided and therefore necessary steps will have to be taken for administering these provisions,which may take some time necessary provision is, therefore, proposed to be added to sub-clause (3) for this purpose clause 2-~ this clause contains definitions and interpretations these include appellate board, commercial exploitation, layout-design, semiconductor integrated circuit, registered layout-design, bench, chairman, judicial member, member, registered proprietor, register, registrar etc clause 3—this clause provides for the appointment of the registrar and other officers clause 4— this clause seeks to empower the registrar to withdraw any matter pending before an officer and deal with such matter himself or transfer the same to another officer for reasons to be recorded therein the purpose of this is to ensure better management of the work in semiconductor integrated layout-design registry and in the administration of the act clause 5— this clause deals with the establishment of the semiconductor integrated layout-design registry and branch offices clause 6— this clause contains provisions regarding maintenance of a single register of layout-designs at head office wherein particulars of the layout-designs with the names, addresses and description of the proprietor and other prescribed shall be recorded a copy of the register is to be kept at each branch office clause 7—- sub-clause (1) stipulates what constitutes absolute grounds for prohibition of registration of layout-designs it is proposed to explicitly stipulate that layout- designs which are not original or which have been commercially exploited for more than two years or which are not inherently distinctive or which are not inherently capable of being distinguished from the registered layout-design shall not be registered under the act sub-clause (2) defines an original layout-design which can be registered under the act sub clause (3) provides that in case the original layout- design is created as a result of a commission or employment the right shall, in the absence of any contractual provisions to the contrary, belong to the person who commissioned the work or the employer clause 8— sub-clause (1) deals with the procedure for making an application for registration of a layout-design sub-clause (2) provides for the place where application for registration of a layout-design is to be filed sub-clause (3) provides the provisions to the registrar to refuse the application or accept it absolutely or subject to amendrhents or modifications clause 9— this clause provides for withdrawal of acceptance of an application, before its registration, when the acceptance of layout-design is in error etc, after hearing the applicant clause 10— this clause provides for advertisement of an application, either after acceptance or before acceptance, so as to afford the public an opportunity to oppose the registration of layout-design clause 11 this clause deals with the procedure for opposition to registration to registration of a layout-design, sub-clause (6) provides for payment of security for costs in the case of persons who do not reside or carry on business in india clause 12— this clause provides for correction any error in or in connection with the application or amendment of the application either before or after acceptance of the application clause 13— this clause makes it mandatory on the registrar to register the layout- design where the procedure for registration of the layout-design has been completed viz the application has been accepted and either the application has not been opposed or the opposition has been dismissed clause 14— this clause provides for registration of jointly owned layout-designs clause 15— the duration of registration of a layout-design shall be for a period of ten years counted from the date of application for registration or from the date of first commercial exploitation clause 16— this clause provides that no infringement action will lie in respect of an unregistered layout-design, clause 17— this clause deals with the exclusive rights conferred by registration of a layout-design whether or not the layout-design is incorporated in an article or not clause 18— this clause deals with the infringement of layout-design and explicitly states as to various acts which constitute infringement sub-clause (1) provides that any act of reproducing a registered layout-design partly or entirely in a integrated circuit, act of importing or selling or otherwise distributing for commercial purposes an integrated circuit or an article incorporating such an integrated circuit sub-clause (2) provides that the acts contained in sub-clause (1) and (5) will not be infringement if these acts are performed for the purpose of scientific evaluation, analysis, research or teaching sub-clause (3) provides that it will not be a infringement if a person on the basis of scientific evaluation or analysis of a registered layout-design creates another layout- design which is original and performs any of the acts contained in sub-clause (1) and (5) on this so created layout-design sub-clause (4) prevents the proprietor of a registered design to use a layout-design which is created by another person on the basis of scientific evaluation or analysis of a registered layout-design referred to in sub-clause 3 sub-clause (5) provides that it will be not an infringement to perform or directing to be performed any of the acts referred to in sub-clause (1) if the person does not know or has no reasonable ground to know that the integrated circuit or an article incorporated a registered layout-design but after the time when such person has received notice of such knowledge, he may continue to perform or directing to be pérformed acts referred to in sub-clause (1) on the stock on hand or ordered before such time by paying royalty to the registered proprietor determined by negotiations between the registered proprietor and the person or by the appellate board based on the benefit accrued by the person sub-clause (6) provides for the immunity from infringement referred to in sub-clause (5) to a person who purchases an integrated circuit incorporating a registered layout- design or an article incorporating such an integrated circuit sub-clause (7) provides that acts referred to in sub-clause (b) of (1) shall not be infringement if they are performed with the written consent of the proprietor of a registered layout-design or within the control of the person obtaining such consent sub-clause (8) provides that if a person by the application of independent intellect creates a layout-design which is similar to the registered layout-design and claims that the layout-design so created was before the date of registration of the registered layout-design then any act of this person in respect of the layout-design shall not be the infringement of the registered layout-design clause 19— this clause states that registration including subsequent assignment and transmission, is prima facie evidence of validity clause 20— this clause recognises the right of registered proprietor to assign the layout-design for any consideration and give receipts clause 21— this clause deals with the assignability and transmissibility of a registered layout-design whether with or without the good will of the business clause 22— this clause seeks to stipulate conditions for assignment of a layout- design without goodwill of business such an assignment will not take effect unless the assignor obtains directions of the registrar and advertises the assignment as per the registrar's directions and as per the procedure to be prescribed the purpose of this advertisement is to notice of the assignment without goodwill of the business to the public clause 23— this clause deals with the procedure for registration of assignment and transmission where the validity of an assignment is in dispute between the parties, the registrar may refuse to register such transmission unless the rights of the parties are determined by the competent court , clause 24— this clause deals with the registretion of registered users clause 25—- this clause provides for registration as a registered user the clause sets out the procedure for making application and such registration, on completion of which the registrar may register the proposed user clause 26— this clause deals with the power of the registrar to cancel registration as registered user registration of registered user may be cancelled on the ground that the registered user has used the layout-design not in atcordance with the agreement or the proprietor/user has failed to disclose any material facts for such registration or that the circumstances have changed since the date of registration etc notice and opportunity of hearing is provided before cancellation of the registration clause 27— it is necessary to keep the register of the layout-designs up-to-date accordingly, to ascertain whether the registered user agreement is in force, the registrar is, proposed to be empowered to require the proprietor to confirm, at any time whether the agreement, on the basis of which registered user was registered is still in force, and if such confirmation is not received within the prescribed time the registrar shall remove the entry thereof from the register in the prescribed manner clause 28—- this clause recognises the right of registered user to take proceeding against infringement clause 29— this clause provides that a registered user will not have a right of assignment or transmission it is clarified that where the individual registered user enters into partnership or remaining in a reconstituted firm, the use of the layout- design by the firm would not amount to assignment or transmission clause 30— sub-clause (1) enable a person aggrieved by the absence or omission of any entry from the register or entry wrongly remaining or without sufficient cause to the appellate board or registrar sub-clause (2) empowers the appellate board or registrar to decide any question as may be necessary in connection with the rectification sub-clause (3) empowers the appellate board or the registrar to rectify the register on the grounds specified above on its own motion after giving an opportunity of being heard to the parties concerned sub-clause (4) enables registrar to rectify the register pursuant to an order of the board to rectify the register clause 31— sub-clause (1) empowers the registrar to correct the register in respect of the errors relating to particulars of the registered proprietor or the entries relating to the registered layout-design and also to make consequential amendments, and alterations in the certificate of registration sub-clause (2) empowers the registrar to rectify the register to correct any error or change of name etc on an application by the registered user after giving notice to the registered proprietor clause 32— this clause provides for the constitution of the appellate board to hear appeals against the decisions of the registrar clause 33— this clause deals with the composition of the appellate board the board will consist of a chairman, vice chairman and such other members the central government deem fit the place where the board may sit will be notified by the central government clause 34— this clause deals with the requisite qualifications for appointments as chairman, vice-chairman and members of the board clause 35— this clause deals wih the term of office of the chairman, vice- chairman and other members of the soard and their conditions of service clause 36— 'this clause sets out the circumstances where the vice chairman or the senior most member will act as chairman and discharge his function clause 37— this clause enables the central government to prescribe the salaries and allowances of the chairman, vice chairman and other members and other terms and conditions of their service viz, pension, gratuity, retirement benefits etc clause 38— this clause makes provision for the resignation of the chairman, vice chairman or any other members of the board and various grounds for their removal from office clause 39— this clause provides for the appointment and functioning of the staff of the appellate board, terms and conditions of service and the administrative powers of the chairman over themclause 40— this clause provides for determination of royalty by the appellate board by submitting an application in the prescribed form the appellate board shall dispose of the application after giving opportunities to the applicant and the opposing party decision of the appellate board shall be executable by a civil court clause 41— this clause empowers board to cancel the registration of the registered layout-design or registration of assignment or transmission related to the registered layout-design on receipt of an application and after giving the opportunity to the opposite party of being heard cancellation of the registered layout-design either in whole or in part shall be deemed to be effective on the date from which the period of ten years --------  clause 42 this clause makes provision for appeals to the appellate board from the decisions of the registrar and the period within which they are to be preferred clause 43— this clause empowers the appellate board to regulate its own procedure the appellate board will have the powers of a civil court trying a suit under the code of civil procedure, 1908 in respect of the matters set out in the clause to facilitate speed disposal of cases, the clause lays down that the board shall not be bound by the procedure laid down in the code of civil procedure, 1908 but be guided by the principles of natural justice clause 44— this clause bars any court or other authority from exercising jurisdiction, powers or authority in relation to the appeals clause 45— this clause prohibits the chairman, vice chairman or other members of the board from appearing before the appellate board or the registrar after they cease to hold office clause 46—- this clause provides that no interim order shall be made in any proceeding relating to an application unless copies of the appeal are furnished to the party against whom the appeal is made and an opportunity of hearing is given to such parties clause 47— the clause seeks to empower the chairman to transfer any cases pending before one bench for disposal to any other bench either on his own motion or on the application made by any of the parties the purpose of this is to secure proper management of work clause 48 this clause deals with the procedure for application for rectification made to the appellate board this also provides that certified copy of the order or judgement of the board will be communicated to the registrar for taking appropriate action, including amending entries in the register accordingly clause 49— this clause empowers the registrar to appear before the appellate board in certain cases or in lieu of appearance, to file the statement in writing which shall constitute evidence of the proceeding clause 50—- this clause empowers registrar to refer disputes to the appellate board whether the layout-design has been commercially exploited for more than two years and the decision of the board shall be final clause 51—this clause empowers the appellate board to permit the use of registered layout-design by the government or the person authorised by the government subject to any or all of the conditions enumerated in items (a) to (e) of sub-clause (1) of that clause these conditions are inter alia relates to the noncommercial pubic purposes, extreme public urgency and anti competitive practise the appellate board also empower to determine royalty in lieu of such use and to review the permission granted under this clause clause 52—in all proceedings before appellate board, the registrar will not be ordered to pay the costs to any party, but the costs of the registrar shall be in discretion of the appellate board clause 53-—-this clause makes provisions for appeals to the high court from the decision or order of the appellate board and the period within which they are to be preferred sub-clause (2) of this clause provides that such appeal shall be preferred by petition in writing and sub-clause (3) applies the provisions of code of civil procedure, 1908 to such appeals clause 54—this clause empowers the high court to make rules which are consistent with this act this is required to conduct and proceed of all proceedings under this act clause 55— this clause makes transitional provisions conferring powers on the intellectual property appellate board established under the trade marks act, 1999 to act as appellate board under the proposed legislation till the appellate board is constituted under that legislation clause 56— this clause provides for the infringement of layout-design which may extend to three years imprisonment or with fine which shall not be less than fifty thousand rupees but may extend to ten lakhs rupees or with both clause 57—this clause makes flase representation of a layout-design as registered as an offence the punishment for the offence is imprisonment for a term which may extend to six months or with fine which may extend to fifty thousand rupees or with both it is also cerify that where the layout-design in question is registered under the law of the country outside india, the use of word or other expression to denote such registration in foreign country is permissible clause 58—- the use of any words which would lead to the belief that a person's place of business is officially connected with the semiconductor integrated circuits layout-design registry is made a punishable offence with imprisonment for a term which may extend to six months or fine or with both clause 59— this clause contains provisions for penalty for falsification of entries in the register the offence is punishable wish imprisonment extending to two years or fine or with both clause 60— this clause empowers the court to direct the forfeiture to government of all the goods relating to which an offence has been committed the court may either order the forfieted goods to be destroyed or otherwise disposed of where an appeal against conviction lies, the appeal will also lie against the forfeiture clause 61—this clause contains provision for exemption of certain persons employed in ordinary course of business from liability if the person accused of an offence proofs, inter alia that he had at the time of commission alleged offence no reason of suspect the genuineness of the registered layout-design, he shall not be liable clause 62— this clause prescribes the procedure where invalidity of registration is pleaded by the accused, and makes provisions for stay of proceeding in certain circustances if the court is satisfied with the defence of invalidity of the registration, it may adjourn the proceedings for three months to enable an application for rectification of the register to be filed before the appellate board if the accused proves that he has made such applications, further procceings shall stand stayed till the disposal of rectification application on the other hand if within the period allowed by the court, the accused fails to apply for the rectification before the appellate board, the court is bound to proceed with the case as if registration is valid clause 63—- the clause contains provisions for the offences by companies this provision seeks to provide that where a person commits an offence as a company, every person responsible in the company for the conduct of its will be liable where a person accused proves that the offence was committed without his knowledge he will not be liable however, where it is proved that an offence has been committed with the consent or connivance or is attributed to the neglect of any director, manager, secretary or any other officer of the company, he shall be deemed to be guilty of the offence clause 64— this clause provides that court shall take cognizance of an offence under clause 56 or clause 57 only on the written complaint of the registered proprietor or registered user the-clause also provides that court shall take cognizance of an offence under clause 58 or 59 only on the complaint by the registrar or any officer officer authorised by the registrar clause 65— this clause empowers the court to order payment of reasonable costs by the accused to the complainant or by the complainant to the accused clause 66— this clause provides that an officer of the government who is required to enforce the provisions of this chapter should not be compelledd to say as to when and where he got any information in respect of the alleged offence clause 67— this clause provides that any person in india abetting the commission of any offence which, if committed in india would be an offence kshall be tried for such abetment and shall be punished clause 68—-this clause prohitbits the registrar to disclose any information relating to registration of a layout-design or any application relating to such a registration in the interest of security of india this clause also empowers the registrar to take action for the cancellation of the registration of the layout-design in the interest of the security of india clause 69— the clause seeks to protect anything done or intended to be done by any person in persuance of this act in good faith clause 70—this clause is states that every persons appoint under the proposed legislation and every member of the appellate board shall be public servant clause 71—this clause provides that where a registered layout-design, or a semiconductor integrated circuit in which a registered layout-design is incorporated, or an article incorporating such a semiconductor integrated circuit is sold or has been contracted for sale, there is implied warranty that the registration of the layout-design is genuine clause 72— this clause seeks to empower the registrar with the power of a civil court, including award of reasonable costs, subject to rules to be made to this behalf clause 73— this clause provides that the registrar has to give an opportunity of being heard to the person/persons before exercising his discretionary powers adverse to himclause 74,— this clause says that evidence before the registrar should be normally in form of affidavit only and in addition or in lieu thereof the registrar may take oral evidence clause 75— this clause provides that in case of death of a party to a proceeding during the course of proceedings, the registrar, on proof to his satisfaction may allow substitution of his successor or may allow the proceeding to continue with the surviving parties clause 76— this clause empowers the registrar to extend the time for doing any act, not being a time expressly provided in the act clause 77,— if the registrar is of the opinion that the applicant has defaulted in the prosecution of his application, he may by a notice required him to remedy the default after giving him an opportunity to be heard he may treat the application as abandoned unless the defaulot is remedied within the time specified by him clause 78—this clause states that any person proposing to apply for registration of a layout-design may request the registrar to obtain preliminary advice as to the distinctiveness of the layout-design clause 79—this clause provides that in every proceeding the registered user shall be made party to the same clause 80—this clause states that certificate issued by the registrar shall be prima facie evidence without further proof or production of the original clause 81—this clause states that registrar and other officers shall not be compelled to produce the registrar and other documents if the contents can be proved by p:roduction of a certified copy they shall not be compelled to appear as witness to prove the matter therein unless for spcial cause it is ordered-by the court clause 82—this clause states that whre in any legal proceeding for rectification of registrar a decision is given in favour of the registered proprietor the appellate board may grant a certificate of validity clause 83—this clause deals with address for service given by the applicant or popponent by stating that this address shall be deemed to be address of the applcant or opponent and all correspondence shall be sent to them on this address only clause 84—this clause deals with agents and provides that if any act is required to be done before the registrar by any person, this may be done by him or a legal practiner, a layout-design agent by his employee if he is duly authorised by him clause 85—this clasue seeks to protect the rights of the proprietor of a registered layout-design if his agent or representative to register or registers the layour-design in his own name, without authority, the proprietor is entitledto oppsoe the application or to apply forrectification so as to being him as the registered proprietor the time within which such action has to be taken is three years from the date he is aware of the conduct of the agent clause 86—this clause provides for keeping indexes at the layout-design registry, viz indexes of registered and pending layout-designs, registered proprietor's index and index of registered users clause 87—this clause provides for the inspection of the documents by the public any number of public may inspect these documents on payment of the fees to be prescribed and also obtina certifed copy of the entry from the registrar clause 88—this clause provides for placement before the parliament by the registrar annual reports on the execution of this act clause 89— this clause provides for prescribing fees for various acts to be done under this act clause 90— tis clause provides for protecting the person in respect of offences in chapter ix clause 91—this clause deals with the declarartion of ownership of layout-design (other than a registered layout-design) not registerable under the registration act, 1908 clause 92— this clause states that the provisons of this act shall be binding on the governemnt clause 93—this clause empowers the cental government, by notification in the official gazette, to specify convention countries for providing the citizens of those countries the similar privileges as granted to the citizens of india under the proposed legislation clause 94—this clause contains provisons as to reciprocity if any contry does not accord to citizens of india the same rights as to registration and protection of layout- design as it accords to its own national, no national of that country is entitled to apply for registration of a layout-design, to apply for registration as a registered user of a layout-design or to be registered as the assignee of the registered proprietor of a layout-design in india clause 95—this clause empowers the central government for removing difficulties which may arise in giving effect to the provisons of the act every order of the central government under this clause is to be laid before house of-palriament this power is exercisable only for five years from the commencement of the new act clause 96—this clause empowers the central government to make rules to carry out the purposes of the new act on the various matters specified therein memorandum regarding delegated legislationclause 96 of the bill empowers the central government to make rules to carry out the pravisions of the proposed legislation sub-clause (2) of that clause enumerates the matters with respect to which rules may be made under this clause these matters relate to, inter alia, the manner of making of applications and fee payable for such applications under this bill; the manner of advertising of application for registration; form of certificate of registration; manner of making an application for assignment or transmission of a registered of layout-design; the manner of authorising any person to act and to registered him as a layout-design agent; form and manner of making appeal to the appellate board and salaries and allowances payable and the other terms and conditions of service of the chairman, vice-chairman and other members, officers and other employees of the appellate board  2 the aforesaid matters relate to procedure and administrative details and it is not practicable to provide for them in the bill itself the delegation of legislative power is, therefore, of a normal character  financial memorandumclause 32 of the bill relates to the establishment of layout-design appellate board and clause 39 relates to the salaries and allowances payable to and other terms and conditions of service of officers and other employees to assist the board clause 3 of the bill relates to the establishment of the office of registrar of semiconductor integrated circuits layout-design it is estimated that the bill, when enacted will involve a non-recurring expenditure of rupees fifty lakhs and recurring expenditure of rupees one hundred seventy five lakhs during every financial year 