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Design License Agreement — Draft Template

Complete guide to design license under Indian IP law. Process, documents, fees, enforcement, latest amendments. Updated March 2026.

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Design Registration
Published
March 23, 2026
Last updated
Oct 3, 2026
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7 min
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Last updated: October 2026Verified against: Government sources

Overview

This article provides a comprehensive, plain-language explanation of Design License Agreement under the Designs Act, 2000 and the Rules made thereunder. Whether you are a business owner, startup founder, IP professional, or creator, understanding these provisions is essential for protecting your intellectual property rights in India.

The relevant provisions are found in Section 30, read with applicable Rules, Notifications, and Practice Directions issued by the Controller General of Patents, Designs and Trade Marks (CGPDTM) and the Indian IP Office. This article incorporates all amendments up to March 2026.

Why This Matters
Failure to protect your intellectual property can result in loss of exclusive rights, inability to prevent competitors from copying your work, and significant financial losses. Conversely, infringing someone else's IP can lead to injunctions, damages of lakhs to crores, criminal prosecution, and imprisonment. Understanding design license is crucial for every business operating in India.

What the Law Requires

Key Legal Framework

Section 30 of the Designs Act, 2000 establishes the framework for design license. The provisions cover: (a) what can be protected, (b) who can apply, (c) the application and examination process, (d) rights granted upon registration, (e) term and renewal, (f) enforcement against infringement, and (g) penalties for violations.

The corresponding Rules provide detailed procedural requirements including prescribed forms, fees, timelines, and documentation.

Who Can Apply / Who Is Affected?

Applicant TypeEligible?Special Provisions
Individual / Sole ProprietorYesCan apply personally or through an agent
Partnership Firm / LLPYesApply in the name of the firm/LLP
Company (Pvt/Public)YesBoard resolution authorizing the application recommended
Startup (DPIIT Recognized)YesFee concessions, expedited examination available
Small Entity / MSMEYesReduced fees under applicable rules
Foreign ApplicantYesMust apply through an agent registered in India; convention/PCT priority available
Government / Educational InstitutionYesFee concessions in some cases
Fee Concessions for Startups
DPIIT-recognized startups get significant fee concessions on IP filings -- up to 80% reduction on patent filing fees and 50% on trademark fees. Additionally, startups can avail expedited examination for patents. for DPIIT recognition assistance.

Detailed Explanation with Practical Examples

Example 1: Amit from Faridabad has developed a unique brand name for his clothing line. He wants to prevent others from using the same or similar name. He needs to file a trademark application to secure exclusive rights over the brand name across India.

Example 2: A tech startup in Gurugram has developed a novel algorithm for logistics optimization. They need to evaluate whether this qualifies for patent protection, copyright protection, or trade secret protection -- and take steps accordingly before disclosing it publicly.

Example 3: A designer has created a unique pattern for textile products. She can protect this through design registration (if it is a new and original design applied to an article) or copyright registration (if it qualifies as an artistic work). The choice depends on the nature of the work and the protection needed.

Practical Advice
For design license, always conduct a thorough search of existing registrations before filing. This helps avoid objections, oppositions, and wasted filing fees. our IP team conducts comprehensive searches and advises on the best protection strategy.
Quick recapKey facts & short answers

Key Facts About Design License Agreement --

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes Design License Agreement -- end to end for you.

What is design license?

Section 30 of the Designs Act, 2000 governs design license. It covers eligibility, process, rights, and enforcement.

How long does the process take?

Timelines vary: Trademark registration typically 8-24 months, Patent grant 2-5 years, Copyright registration 2-6 months, Design registration 6-12 months.

An assignment is complete when it is in writing and on record, not when the fee is paid.

— TaxClue IP Desk

Design License Agreement --: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

READY DRAFTDesign License Agreement — Draft Template

A licence permitting another party to apply a registered design to articles without transferring proprietorship, recorded with the Controller under Section 30 of the Designs Act, 2000.

DESIGN LICENCE AGREEMENT

(Under Section 30 of the Designs Act, 2000)

THIS LICENCE AGREEMENT is made at [City] on this [Day] day of [Month, Year] BETWEEN [Name of Licensor], of [Address] (the "LICENSOR", registered proprietor of the Design) AND [Name of Licensee], of [Address] (the "LICENSEE").

WHEREAS the Licensor is the registered proprietor of the design bearing Registration No. [______], Locarno Class [__], in respect of the article "[Name of Article]" (the "Design"), and the Licensee wishes to apply the Design to articles it manufactures/sells on the terms below.

NOW IT IS AGREED as follows:

1. Grant of Licence. The Licensor grants to the Licensee a [exclusive / non-exclusive / sole] licence to apply the Design to the article "[Article]" and to make, use, sell and offer for sale articles bearing the Design, within the Territory and Term below.

2. Design & Registration. The licensed Design is Registration No. [______], Class [__], as illustrated in the registered representation, valid and subsisting under Section 11.

3. Territory. India [or specify States / channels].

4. Term. [__] years from [Start Date], not exceeding the subsisting term of the Design registration (including any extension), renewable by mutual written agreement.

5. Royalty & Payment. The Licensee shall pay a royalty of [__]% of the [net ex-factory sale price] of each article bearing the Design [and/or a lump-sum licence fee of ₹[Amount]], payable [quarterly] with a statement of sales, plus GST as applicable. Minimum guaranteed royalty: ₹[Amount] per [year].

6. Quality Control. The Licensee shall apply the Design faithfully to the registered representation and maintain quality standards prescribed by the Licensor, who may inspect samples and production.

7. Marking. The Licensee shall mark the articles/packaging with the words "REGISTERED" / "Regd. Design No. [____]" as required by Section 15 to preserve the right to recover damages for piracy.

8. No Transfer of Proprietorship. Nothing herein transfers proprietorship of the Design; the Licensor remains the registered proprietor and the Licensee acquires only the licensed rights.

9. Infringement/Piracy. The Licensee shall promptly notify the Licensor of any piracy under Section 22; enforcement shall be [by the Licensor / jointly], with costs and recoveries shared as agreed.

10. Recordal. The parties shall apply to record this licence with the Controller of Designs in the prescribed form so that the Licensee's title is entered in the register (Section 30).

11. Termination. Either party may terminate on [30] days' notice for uncured material breach or on the Licensee's insolvency; on termination the Licensee shall cease applying the Design and sell off existing stock within [__] days.

12. Warranties & Indemnity. The Licensor warrants proprietorship and validity of the registration; each party indemnifies the other for losses from its breach.

13. Governing Law & Dispute Resolution. Indian law; arbitration (sole arbitrator, seat [City]) under the Arbitration and Conciliation Act, 1996, or the Commercial Court / High Court at [City].

IN WITNESS WHEREOF the parties have executed this Agreement on the date first above written.

____________________
LICENSOR
[Name / Authorised Signatory]
____________________
LICENSEE
[Name / Authorised Signatory]

Witnesses: 1. ______________    2. ______________

▸ How to use & important notes
  • A design licence should be in writing and, to be effective as against third parties, recorded with the Controller under Section 30; an unrecorded licence may not be admitted in evidence of title.
  • Mark articles/packaging as "REGISTERED / Regd. Design No. ___" (Section 15) — failure to mark can bar recovery of damages/penalty for piracy under Section 22.
  • The licence cannot outlast the registration; a design lasts 10 years, extendable by 5 years (Form 3, before expiry) under Section 11 — track renewals.
  • Execute on stamp paper under the applicable State Stamp Act and pay the recordal fee to the Patent Office (Designs Wing, Kolkata).
  • Specify royalty base, minimum guarantee, quality control and audit rights clearly to avoid disputes.

Disclaimer: This is a general-purpose template for reference only. Facts, figures, stamp duty and clauses vary with your situation and state law — have it reviewed before use. Need this professionally drafted, stamped and filed? Talk to a TaxClue expert.

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Vikas Sharma Verified expert Tax & Compliance Expert

Experienced in company registration, GST, trademark, and compliance. Helping Indian businesses stay compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

People also ask

Questions, answered

Short, direct answers to the 4 questions readers ask most on this topic.

Section 30 of the Designs Act, 2000 governs design license. It covers eligibility, process, rights, and enforcement.

Timelines vary: Trademark registration typically 8-24 months, Patent grant 2-5 years, Copyright registration 2-6 months, Design registration 6-12 months.

Fees depend on applicant category (individual/startup/MSME/company) and whether filing is online or physical. Startups get significant concessions.

Complete IP services including search, filing, prosecution, and enforcement. .