Electronics
and Information Technology is one of the fastest growing sectors that has
played a significant role in the world economy. This was primarily due
to the advancement in the field of electronics, computers and telecommunications.
Microelectronics has rightly been recognized as a core strategic technology
world over, especially for the Information Technology (IT) based society.
To encourage continued investment in R&D leading to technological advancements
in the field of microelectronics, protection of Intellectual Property Rights
is of utmost importance.
2.Initially
the classification of Integrated Circuits (ICs) complexity was by gate
count only.Typically a gate is an
electronic circuit using transistors.This
type of classification led to Small Scale Integration (SSI - upto 30 gates),
Medium Scale Integration (MSI - upto 300 gates), Large Scale Integration
(LSI - upto 3,000 gates) and Very Large Scale Integration (VLSI - upto
30,000 gates).However, there are
other ways to classify levels of ICs, such as pin count, chip die size,
transistor geometry dimension, functionality etc. Irrespective of the scheme
of classification, a semiconductor integrated circuit is the process of
creating floor plan of transistors called the Layout-Design using set of
masks.Since Layout-Design could
be arrived in any manner, it is the Layout- Design which is an Intellectual
Property by itself.Hence, there
is a need to protect the Layout-Design of Integrated Circuits.
3.The
existing practices of providing protection through the methods of Copy
Right and Patents do not appropriately accommodate the requirements of
Intellectual Property Rights Protection for the Layout-Design of Integrated
Circuits. This is because in the context of Layout-Design of Integrated
Circuits the concept of "originality" is of utmost significance, whether
it is"novel or not";the
Patent Law requires that the idea should be original as well as novel.
The copyright law is too general to accommodate the original ideas of scientific
creation of Layout-Designs of Integrated Circuits. Hence, the requirement
of this Bill. Under the environment of guarantee of protection, the experience
world over shows that the creator of the Layout-Design is more confident
towards the transfer of technology by allowing its reproduction. The necessity
for providing protection for the Layout-Designs of Integrated Circuits
arises to reward and encourage an adequate level of investment of human,
financial and technological resources.
4.The
majority of countries that attach significance to protection of Intellectual
Property Rights in the Semiconductor Integrated Circuits provide for a
"sui generis" of its kind, unique protection of Layout-Designs of Integrated
Circuits which is usually contained in a separate Act. The World Trade
Organisation (WTO) agreement which was ratified by India has provisions
for Trade Related Intellectual Property Rights (TRIPS) with regard to setting
up of standards concerning availability, scope and use of Intellectual
Property Rights, Geographical Indications, Layout-Design of Integrated
Circuits etc. As one of the signatories of WTO, India is also expected
to align its laws in accordance with the TRIPS Agreement and formulate
suitable legislation.
5.The
salient features of the Bill are summarized below:
(i)The
Bill provides for protection of Semiconductor Integrated Circuits Layout-Designs
by process of registration.
(ii)The
Bill provides for mechanism for distinguishing Layout-Designs, which can
be protected.
(iii)The
Bill provides for rules to prohibit registration of Layout-Designs which
are not original and/or which have been commercially exploited.
(iv)The
Bill provides for a period of ten years as a term of protection of Layout-
Designs.
(v)The
Bill has provision with regard to infringement, evidence of validity including
power of registered proprietor for assignment and transmission.
(vi) The
Bill provides for payment of royalty for registered Layout-Design and also
has a provision for determination of royalty payment for innocent infringement.
(vii)The
Bill provides for dealing with willful infringement by way of punishment
with imprisonment for a term which may extend to three years, or with fine
which shall not be less than fifty thousand rupees but will not exceed
ten lakh rupees or with both.
(viii)The
Bill provides for appointing a Registrar for registering the layout-designs.
(ix)The
Bill provides for mechanism of Appellate Board consisting of Chairman,
Vice-Chairman and such other members as the Central Government may deem
fit.