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

Nimbus Semicon, an Indian firm, commissioned freelancer Rhea to create a layout-design under a contract that was silent on who may register it. Rhea completed an original design. Rhea then filed an application in her own name, while Nimbus also wants to register. Which statement is correct under Section 7?

The right of registration belongs to Nimbus. Under Section 7(3), where an original layout-design is created under a commission or employment contract, the right goes to the commissioner or employer unless the contract says otherwise. Here the contract is silent, so Rhea's being the creator does not give her the right.

  1. ARhea holds the right of registration, because she is the actual creator
  2. BThe right of registration belongs to Nimbus, since the design was created on commission and the contract has no contrary provisionCorrect
  3. CThe right belongs to whichever of the two files first, regardless of the commission
  4. DThe right is shared equally, because the contract was silent

Explanation

Section 7(3) provides that where an original layout-design is created under a commission or contract of employment, the right of registration belongs, absent a contrary contractual provision, to the person who commissioned the work or the employer. The contract is silent, so Nimbus holds the right. Being the creator or filing first does not change this.

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