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Section 16 of the Designs Act, 2000: Effect of Confidential Disclosure on Copyright

Three things "shall not be deemed to be a publication of the design sufficient to invalidate the copyright thereof": (1) a disclosure by the proprietor to another person in...

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Design Registration
Published
October 1, 2026
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Oct 1, 2026
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Last updated: October 2026Verified against: Government sources

A design must be new, and showing it to the public before filing can destroy that newness. Section 16 carves out three situations that are not to be treated as a publication: a disclosure in circumstances where it would be contrary to good faith for the other person to use or publish the design, a disclosure in breach of good faith by someone other than the proprietor, and the acceptance of a first and confidential order for articles bearing a new or original textile design intended for registration. If your design has been shown to a supplier or a buyer, a legal consultation can help you test the facts against this section.

The text

"The disclosure of a design by the proprietor to any other person, in such circumstances as would make it contrary to good faith for that other person to use or publish the design, and the disclosure of a design in breach of good faith by any person, other than the proprietor of the design, and the acceptance of a first and confidential order for articles bearing a new or original textile design intended for registration, shall not be deemed to be a publication of the design sufficient to invalidate the copyright thereof if registration thereof is obtained subsequently to the disclosure or acceptance."

The section is one long sentence. Pulling it apart gives three limbs and one condition.

LimbWho disclosesWhat makes it protected
1The proprietor, to any other personCircumstances that make it contrary to good faith for that person to use or publish the design
2Any person other than the proprietorThe disclosure is in breach of good faith
3Not a disclosure but an acceptance of an orderA first and confidential order for articles bearing a new or original textile design intended for registration
ConditionAll threeRegistration is obtained subsequently to the disclosure or acceptance

Limb 1: the proprietor's confidential disclosure

The proprietor may show a design to a manufacturer, a mould-maker, an investor or a printer. The section says such a disclosure is not a publication "sufficient to invalidate the copyright" if the circumstances were such that it would be "contrary to good faith" for the recipient to use or publish the design. The key is the circumstances. The text does not say that a written confidentiality agreement is required, and does not list the circumstances. It speaks of good faith, not of any particular document. A signed non-disclosure agreement, or a clear statement made when the design is shown, will be the practical way to prove the circumstances; the text does not demand it.

This limb links to section 4(b), which bars registration of a design that "has been disclosed to the public anywhere in India or in any other country by publication in tangible form or by use or in any other way prior to the filing date". Limb 1 says a confidential disclosure of this kind is not a publication "sufficient to invalidate the copyright". See our article on section 4.

Limb 2: disclosure in breach of good faith by someone else

"The disclosure of a design in breach of good faith by any person, other than the proprietor of the design". Suppose an employee of a supplier leaks the drawings, or a trade-show visitor photographs a prototype in breach of an understanding and posts the photographs online. The proprietor did not make that disclosure and it was in breach of good faith. The section says it is not deemed a publication sufficient to invalidate the copyright.

Notice how the text is framed. The protection is for the proprietor's position; it does not say what remedy the proprietor has against the person who breached good faith, and it does not make the leaker liable under the Act. That is outside this section.

Limb 3: the first and confidential textile order

"The acceptance of a first and confidential order for articles bearing a new or original textile design intended for registration." This limb applies only to textile designs. A weaving mill or printer who accepts a first order that is confidential, for articles bearing a new or original textile design that the owner intends to register, does not thereby publish the design.

Each word narrows it:

  • "first": the first order, not later ones.
  • "confidential": the order must be confidential.
  • "textile design": not other kinds of design.
  • "intended for registration": the design must be one the proprietor intends to register.

The text does not define "textile design". Whether a similar design on a ceramic tile counts is not answered; limb 3 is, on its words, confined to textile designs. For sector background, see our post on industrial design protection for fashion and textiles.

The condition: registration obtained afterwards

All three limbs end with "if registration thereof is obtained subsequently to the disclosure or acceptance". So the design must be registered after the event. The section does not extend the filing date and does not say how long the proprietor may wait. It simply says the disclosure is not "a publication sufficient to invalidate the copyright" if registration is obtained afterwards. The time to apply and the effect on the application date are matters for section 5 and the Rules.

What section 16 does not do

  • It does not allow a proprietor to rely on an open disclosure. A trade-fair display or a sale is outside it.
  • It does not protect limb 3 for a non-textile design.
  • It does not state any time within which the design must be filed.
  • It does not give a remedy against a person who broke confidence.
  • It does not interact expressly with section 21 (exhibitions); that is a separate route with its own six-month period. See our article on sections 20 and 21.

Illustration (invented)

Kavya Textiles designs a block-printed border pattern for a bedsheet. Before filing, she gives the artwork to Bright Dye Works, a printing unit, and the two agree in writing that the artwork is confidential. Bright Dye Works accepts a first confidential order for 500 metres of cloth carrying the pattern. Under limb 3 (and limb 1), that disclosure and acceptance is not a publication sufficient to invalidate the copyright if she later obtains registration.

But if a cousin of Kavya's photographs the cloth hung at a stall and posts it online, that is a different matter. If the cousin did so in breach of good faith, limb 2 may apply; if the post was an open display that Kavya herself authorised, section 16 does not help her.

Do not treat this section as permission to launch before filing; get a written confidentiality undertaking and keep dated records of every disclosure.

Need help with design secrecy and filing order?

If you have already shown your design to a supplier or buyer, the order of events matters. Our legal consultation team can review what was disclosed, how, and when, and advise how section 16 and section 4 apply before you file.

Key takeaways

  • Section 16 says three kinds of disclosure or acceptance are not a publication sufficient to invalidate the copyright.
  • They are the proprietor's disclosure in circumstances contrary to good faith for the recipient to use or publish, a disclosure in breach of good faith by someone else, and acceptance of a first confidential order for a new or original textile design intended for registration.
  • The protection depends on registration being obtained afterwards.
  • The text sets no time limit and gives no remedy against the person who breached good faith.

Read next

Disclaimer: Based on the Designs Act, 2000 as enacted, as consulted on 1 October 2026. Forms, fees and procedure are set by the Designs Rules, 2001 as amended from time to time. This article is general information, not legal advice; check the official text before acting.

Quick recapKey facts & short answers

Key Facts About Section 16

  • 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 the entire process end to end for you.

Does showing my design to a manufacturer in confidence destroy novelty?

Under section 16, a disclosure by the proprietor in circumstances that make it contrary to good faith for the other person to use or publish it is not a publication sufficient to invalidate the copyright.

Do I need a written non-disclosure agreement?

The text speaks of circumstances and good faith and does not demand a document; a written undertaking is the practical way to show the circumstances.

Keep the acknowledgement. A filing you cannot prove is a filing you may have to defend.

— TaxClue Compliance Desk

Section 16: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain 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.

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Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

Under section 16, a disclosure by the proprietor in circumstances that make it contrary to good faith for the other person to use or publish it is not a publication sufficient to invalidate the copyright.

The text speaks of circumstances and good faith and does not demand a document; a written undertaking is the practical way to show the circumstances.

Limbs 1 and 2 are not limited to textiles; limb 3, the first confidential order, is confined to textile designs.

Limb 2: a disclosure in breach of good faith by a person other than the proprietor is not deemed a publication sufficient to invalidate the copyright.

The text states none. The only condition is that registration is obtained subsequently.

Not by section 16. Section 21 deals with notified exhibitions, with a six-month period.