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CS Professional · Intellectual Property Rights - Law and Practice · Layout-Designs of Integrated Circuits

Kiran, a designer in Hyderabad, independently creates a layout-design that happens to be identical to a design registered by Zenith Fabless Ltd. He had no access to Zenith's design. He begins fabricating chips with it. What is the legal consequence?

His acts are not infringement. The Act provides that a layout-design created by independent intellect, even if identical to a registered layout-design, does not infringe it. Independent creation is a defence, and no royalty is required, unlike in the innocent dealing situation.

  1. AHe infringes, because identity with a registered design is conclusive
  2. BHe infringes unless he pays royalty to Zenith
  3. CHis acts are not infringement, because a layout-design created by application of independent intellect is not an infringement even if identicalCorrect
  4. DHe infringes only if he sells the chips in India

Explanation

Section 18(8) provides that where a person by application of independent intellect creates a layout-design identical to a registered one, his acts in respect of it are not infringement. The Act does not require royalty in this situation; royalty arises only in the innocent importer or seller case.

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