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

Meera Electronics created a layout-design while employed by Arjun Chips Ltd under a contract of employment that has no clause on registration rights. Arjun Chips wants to be entered in the Register of Layout-Designs as proprietor. Who holds the right of registration?

Arjun Chips Ltd holds the right of registration. Under Section 7(3), where an original layout-design is created under an employment contract or commission, the right belongs to the employer or commissioner unless the contract provides otherwise, and here the contract is silent.

  1. AArjun Chips Ltd, the employer, because in the absence of a contrary contractual provision the right belongs to the employerCorrect
  2. BMeera, the creator, because creators always hold the right of registration
  3. CThe Registrar, until the Central Government decides
  4. DMeera and Arjun Chips jointly in equal shares

Explanation

Section 7(3) provides that where an original layout-design is created under a commission or employment contract, the right of registration belongs, absent a contrary provision, to the commissioner or employer. As the contract is silent, Arjun Chips holds the right and can be entered as proprietor. Registration still requires satisfying Section 7(1).

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