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

Veda Microsystems, Bengaluru, created a layout-design for a sensor chip and began selling chips made with it in India. Fourteen months after the first sale, it filed an application for registration. Under Section 7 of the Semiconductor Integrated Circuits Layout-Design Act, 2000, what is the position on commercial exploitation?

Registration is not barred on this ground. The Act treats a layout-design exploited commercially for not more than two years before the application date as not exploited. Fourteen months is within that period, and the grace applies to exploitation in India as well as in a convention country.

  1. ARegistration is barred, because any commercial exploitation in India before filing disqualifies the layout-design
  2. BRegistration is not barred on this ground, because exploitation for not more than two years before the filing date is treated as no exploitationCorrect
  3. CRegistration is barred, because the grace period applies only to exploitation in a convention country
  4. DRegistration is not barred, because exploitation matters only if it occurred outside India

Explanation

Section 7(1)(b) bars layout-designs commercially exploited in India or a convention country. The proviso treats exploitation for not more than two years before the filing date, in India or a convention country, as not exploitation. Fourteen months is within two years. The grace period is not limited to convention countries.

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