Looking at the growth of mobile phones and other electronic devices in Indian market an Indian firm interested to make investment to market integrated circuits in India. The problem is the firm does not have the technolo

CS Professional · Intellectual Property Rights - Laws and Practices · PYQS · June 2019
Looking at the growth of mobile phones and other electronic devices in Indian market an Indian firm interested to make investment to market integrated circuits in India. The problem is the firm does not have the technology to manufacture IC (Integrated Circuits) therefore the Indian firm is negotiating with an American technology company for signing the technology agreement for IC. Advise the American company how the agreement can be signed between the American company and Indian firm and can American company apply to cancel the registration of Indian firm as a registered user of layout design in future if the American Company is dissatisfied with Indian firm.

Answer & Explanation:

When registered layout-design is intended to be allowed to be used by some other person, then such person is required to be registered with the Registrar as registered user. Registered proprietor and the proposed registered user shall have to make a joint application in writing to the Registrar in a prescribed manner along with agreement in writing (or a authenticated copy), entered into between them with regard to use of layout design showing particulars of the relationship, existing or proposed, including the degree of control by the proprietor over the permitted use which this relationship will confer. The particulars should also clarify whether the proposed registered user shall be sole registered user and mention the place and duration of permitted use. After getting the compliance of requirements under the Act, the Registrar registers the proposed registered user. The Registrar has the powers under the Act to cancel the registration as a registered user of layout design on any of the following grounds: Registered user has not used the layout-design in accordance with the agreement; The proprietor or the registered user misrepresented, or failed to disclose some material facts at the time of application which would have an adverse bearing on the registration of the registered user; 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; That the registration ought not to have been effected having regard to right vested in the applicant by a contract in the performance of which he is interested; Registration may be cancelled by the Registrar of his motion or on the application in writing 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; Registration may be cancelled by the Registrar if the layout-design is no longer registered. The Registrar is required to issue notice in respect of every application received for cancellation of registration of registered user to the registered proprietor and each registered user (not being the applicant) of the layout-design. However, before cancelling of registration, the registered proprietor shall be given a reasonable opportunity of being heard.

Topics: Semiconductor Integrated Circuits Layout-Design Act

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