AM-XI

Topic: Protection of Semi-Conductor Integrated Circuit Lay-out Design Act, 2000

Semiconductor Integrated Circuit is a highly technical field which is used especially for electronics and
information technology or used for the advancement of technology. The manufacturers who are in the
field of manufacturing computers, IC chips are used in computers, mobile phones, watches, radios, data
processing equipment. With the growing need with the advancement of technology, creation of layout
design which is used in all these devices. The smaller the circuit is, the less space is required and more
functions can be added. Creation of a new Layout design of an Integrated circuit involves enormous
investment, both in terms of money and the time of highly qualified experts. So, it is not possible for
anyone to create the Integrated Chip as it requires skill and knowledge to create the layout design.

What is semiconductor integrated circuit and why it requires IP Protection

A semiconductor layout design means a layout of transistors and other circuitry elements and includes
lead wires connecting such elements and expressed in any manner in semiconductor integrated circuits.

With the advancement in the field of information technology, a new branch in the field of intellectual
property flourished, called as the Layout-Design or the of the semiconductor integrated circuits.

Broadly, semiconductor is a material having conductivity in-between conductor and insulator. These are
building blocks for all electronic Ics, including processors, transmitters, receivers, Satellite systems
[Example: If you visit the website of government, sicldr.gov.in, ISRO has been granted registration for
the Integrated Circuit Layout Design. The design is in the form of a chip which is used inside the
computer or any electronic devices.] and advanced digital designs. The semiconductor materials also
find application in solar cells/panels and all kinds of sensors.

Modern technology heavily depends on semiconductor ICs.

Introduction
Before this Act came into force, before 1984, the companies which used to design the chip- now anyone
can copy that, no need to take any legal permission from the owner. It is now easily available and you can
now easily copy the chip.

But this led to huge losses for the companies who were designing the chips with a lot of efforts, both on
economic front and labour front, led to huge losses. INTEL along with Semi-Conductor Industry
Association (SIA) took the lead in seeking remedial legislation against the piracy.

As a result, the manufacturers of ICs sought some way out to protect the layout design IC chip as it was
the backbone of modern technology.

There was a treaty which was passed, popularly known as IPIC Treaty to protect the layout design of
integrated circuit and by virtue of this Treaty, it was discussed at TRIPS Agreement and the members of
the WTO also passed in conformity with the TRIPS Agreement and accordingly, in conformity with the
TRIPS Agreement, the Semiconductor Integrated Circuit Layout Design Act (SICLDA) was passed in
India also in the year 2000.

Need to protect Semi-conductor Integrated Circuits lay-out designs

It plays a significant role in technological development and lots of efforts- both economic and labour
efforts are involved. Technical expertise is also required to make this layout design. If it is not protected
and not rewarded, the people who are technically sound in this field will not get encouraged to make and
manufacture this chip.

It cannot be protected under the traditional IP System, that is, the Patent, Copyright and designs because
they have their own criteria for the protection which the layout design does not fulfill. Thus, we have a sui
generis form to protect the layout design which is the Protection of Semi-Conductor Integrated Circuit
Lay-out Design Act, 2000.

What is protected?
The layout design which is protected is called the layout design which is made up of the Integrated
Circuit- IC Chips, that is protected. A layout design expressed in any manner, which is original, which
has not been commercially exploited for more than 2 years from the date of application for the
registration, which is inherently distinctive and capable of being distinguishable from any other registered
layout design, is protected or registered under the Act.

SICLD Act, 2000

SICLD Act defines the following as:
● "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. [Section 2(r)]
● "Layout-design" means a layout of transistors, and other circuitry elements and includes lead
wires connecting such elements and expressed in any manner in a semiconductor integrated
circuit. [Section 2(h)]
● "Commercial exploitation" in relation to the SICLD means to sell, lease, offer or exhibit for sale
or otherwise distribute such semiconductor integrated circuit for any commercial purpose.
[Section 2(e)]

Who can Apply?

● The application for the protection of layout design can be made by the person who claims to be
the creator of the layout design, his legal representative, a person registered in the prescribed
manner as a layout design agent or a person in the sole and regular employment of the principal,
in writing to the registrar in the prescribed manner.
● The application can be filed either alone or jointly. The application has to be filed within the
territorial limits that is a principal place of business in India of the applicant.

Absolute Grounds for Prohibition of Registration

Section 7 lays down grounds for prohibition of registration of layout design.
Three criteria for registration of layout design - i) It has to be original, ii) Not commercially exploited
anywhere in India or in the convention country, iii) they are inherently distinctive.
If it fulfills these 3 criteria, the layout design is protectable under the Act.

In the same way, if we reverse the above criteria,

It provides that a layout-design shall not be registered-
(1) which is not original; or
(2) which has been commercially exploited anywhere in India or in a convention country; or
(3) which is not inherently distinctive; or
Which is not inherently capable of being distinguishable from any other registered lay-out design.

A lay-out design is said to be original if it is the result of its creator’s own intellectual efforts and is not
commonly known to the creators of lay-out designs and manufactures at the time of its creation.
In order to be registrable, a lay-out design needs to be inherently distinctive. The term inherently
distinctive is not defined under the Act. But we can say that where the function performed by the lay-out
designs is new and different from that performed by other lay-out designs. This would make the design
distinct in itself even if it happens to contain some well-known design elements.
Where the elements and substance used in the manufacture of the layout are novel in the industry, they
are in some way new- like certain new alloys used, it will make the layout design inherently distinctive.
And can be registered under the act.

Procedure for registration

Each layout design for semiconductor chips is a unique combination of transistors and they can use the
combinations which are the property of the company or the person. And the company or the person who
has put resources, both at economic and labour front for the development and has manufactured and
illegal copying of an Integrated Circuit Design costs the company heavy loss in the market- that is the
reason why it needs protection.

Administrative Procedure for registration

● Filing of application in writing to the registrar in the office of SICLD registry in a prescribed
form along with 3 sets of drawings produced to the plotter which describes the layout design and
3 sets of photograph of masks used for the fabrication of the semiconductor integrated circuits by
using of the layout design or drawings which describes the pattern of such masks.
● Acceptance of the application with acknowledgement by way of returning one copy of the
application. The registrar can also withdraw the acceptance if the application is found to be
prohibited for registration.
● The application is advertised in a prescribed manner within 14 days of acceptance of layout
design application. If any opposition is found to the registration, then a notice is sent to the
registrar in the prescribed manner within 3 months from the date of advertisement. The registrar
can call for evidences to be produced by both the parties and finally give his decision.
● If the application is not opposed or the opposition has been decided in favor of the applicant, the
registrar shall register the said layout design in the register of layout design and also issue a
certificate sealed with the seal of the SICLD Registry.
[If the layout design is in the public domain and if anyone is using it, it may be opposed. If not opposed,
then it is registered the Registry and the certificate of seal is issued.]

Registration Process
Duration of Registration
The registration of the layout design shall be only for the period of 10 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. And 2 years from the commercial exploitation, whichever is earlier.

Exclusive Right to the Registered Proprietor

The registration of the layout design gives to the registered proprietor of the layout design the exclusive
right to the use of the layout design and to obtain relief in respect of infringement. This right 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.

Registered User
A person may be registered as a registered user of the layout design when the registered proprietor and
the proposed registered user apply jointly in writing to the Registrar. The application shall accompany the
agreement in writing or its authenticated copy, entered between the registered proprietor and registered
user. The registered proprietor also has to submit an affidavit to the satisfaction of the Registrar.

Assignment and Transmission

A person who becomes entitled by assignment or transmission to a registered layout design shall apply to
the Registrar in the prescribed manner to registered title. The Registrar on the proof of his title to his
satisfaction register him as the proprietor of the layout design.

Protection against Infringement

The act of reproducing, selling, importing and distributing of integrated circuit layout design for
commercial purposes constitutes infringement. Where such act is performed for the purposes of scientific
evaluation, analysis, research or teaching shall not constitute the act of infringement. [this is same as
under Patents Act, 1970]
Any person who commits infringement shall be punishable with imprisonment for a term, which may
extend to 3 years, or with fine which shall not be less than fifty thousand rupees but which may extend to
ten lakh rupees, or with both. [Section 56]