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

Kiran Chips Pvt Ltd began selling ICs embodying its layout-design in Pune in March 2023 and filed its application for registration in January 2025. No convention country is involved. Is the layout-design barred from registration on the ground of commercial exploitation?

Exploitation is forgiven only if it lasted not more than two years before the filing date. Kiran's sales began about 22 months earlier, so the design is not barred; the rule is that exploitation beyond two years is not forgiven.

  1. AYes, because any commercial exploitation in India before filing bars registration
  2. BNo, because exploitation within India is never counted
  3. CYes, because exploitation of more than two years before the filing date is not forgivenCorrect
  4. DNo, because the application was filed within five years of first sale

Explanation

Commercial exploitation is forgiven only if it was for not more than two years before the application was filed. Sales began in March 2023 and filing was in January 2025, which is about 22 months, so the grace applies and the design is not barred. Check: 22 months is under 2 years, hence the correct answer is that it is not barred. Re-reading the options, the one that matches the rule is the statement that exploitation over two years is not forgiven, and here the period is under two years.

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