Section 18 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 18 is the core infringement provision. Sub-section (1) lists two kinds of infringing act: reproducing a registered layout-design, and importing, selling or otherwise distributing it, or a chip or article that incorporates it, for commercial purposes. Sub-sections (2) to (4) give room for scientific evaluation, analysis, research, teaching and the creation of a new original layout-design by analysing a registered one. Sub-sections (5) to (8) are covered in a separate article. Companies that import or sell chips can ask our IP watch and enforcement team to check exposure before a complaint arrives.
This article reflects the Act as amended up to 3 October 2026 (the Act has not been amended since it was enacted in 2000). Check sicldr.gov.in for later notifications. Section 18 has been in force since 1 May 2011.
A registered layout-design is infringed by a person who is neither the registered proprietor nor a registered user and who (a) reproduces it, in whole or in part, by incorporating it in a chip or otherwise, except for a part that is not original, or (b) imports, sells or otherwise distributes for commercial purposes the layout-design, a chip incorporating it, or an article incorporating that chip, without entitlement. Reproduction for scientific evaluation, analysis, research or teaching is not infringement, and a person who creates a new original layout-design by analysing a registered one may use it, subject to sub-section (4).
Section 18(1): two kinds of infringing act
The infringer is "a person who, not being the registered proprietor of the layout-design or a registered user thereof" does the acts below. The proprietor and registered users are therefore outside the section.
18(1)(a): reproducing
The act is "reproducing, whether by incorporating in a semiconductor integrated circuit or otherwise, a registered layout-design in its entirety or any part thereof". Reproducing a part is enough. The exception is "such act of reproducing any part thereof which is not original within the meaning" of section 7(2). So copying a part that was never original (for instance, a widely known block) is not infringement, though copying the original parts is. Originality is explained in section 7.
18(1)(b): importing, selling or distributing
Subject to sub-section (5), the act is "importing or selling or otherwise distributing for commercial purposes" any of three things: (i) a registered layout-design, (ii) a semiconductor integrated circuit incorporating it, or (iii) an article incorporating such a circuit, "for the use of which such person is not entitled under this Act". The third item shows the reach: a finished product containing the chip can be caught, not only the chip. A distributor or importer who is not the proprietor or a registered user and has no entitlement under the Act is within clause (b), unless sub-section (5), (6) or (7) protects them. Those are explained in the article on section 18(5) to (8).
Section 18(2): evaluation, analysis, research, teaching
"Notwithstanding anything contained in section 17, sub-section (1) or sub-section (5)", the act of reproduction referred to in clause (a) of sub-section (1), performed "for the limited purposes of scientific evaluation, analysis, research or teaching", does not constitute infringement of that clause. Three features are worth noting:
- It applies to the reproduction in clause (a), not to the import or sale in clause (b).
- The purposes are limited to the four named: evaluation, analysis, research or teaching. A commercial product is outside them.
- It overrides section 17, so the proprietor's exclusive right gives way here.
Section 18(3): the new original layout-design
A person who, "on the basis of scientific evaluation or analysis of a registered layout-design, creates another layout-design which is original within the meaning of sub-section (2) of section 7" has "the right to incorporate such another layout-design in a semiconductor integrated circuit or to perform any of the acts referred to in sub-section (1) or sub-section (5) in respect of such another layout-design", and this is not infringement. So reverse engineering with a genuinely original result is allowed. The result must meet the originality test in section 7(2), which asks for the creator's own intellectual efforts.
Section 18(4): the proprietor and the derived design
Where a layout-design is created by that process of evaluation or analysis, "the use of such layout-design by the proprietor of such registered layout-design shall be regarded as infringement within the meaning of sub-section (1) after the date of registration of such layout-design under this Act." Read plainly, once the derived design is itself registered, the original proprietor cannot use it without infringing. The sub-section does not say what happens before registration of the derived design.
An "infringes / does not infringe" table
| Act by a person who is not the proprietor or a registered user | Infringes? | Basis |
|---|---|---|
| Copying a registered layout into a new chip | Yes | 18(1)(a) |
| Copying only a part that is not original | No | Exception in 18(1)(a) |
| Reproducing for evaluation, analysis, research or teaching | No | 18(2) |
| Creating a new original layout from analysis, then using it | No | 18(3) |
| Importing chips that incorporate a registered layout for sale, without entitlement | Yes | 18(1)(b), subject to (5) to (7) |
| Selling a product that incorporates such a chip, without entitlement | Yes | 18(1)(b), subject to (5) to (7) |
| The original proprietor using the derived design after its registration | Treated as infringement | 18(4) |
The penalty side
The offence is in section 56: knowing and wilful infringement is punishable; see sections 56 to 59. Section 18 defines the act of infringement; the Act has no separate civil-suit section. A registered user may complain to the criminal court under section 28.
A worked example
An electronics importer brings in a lot of controller chips and sells them to board makers. A registered proprietor in Pune says the chips incorporate its registered layout. If the importer is not the proprietor or a registered user, and its only protection is that it is not entitled, clause (b) is engaged on the face of it. A university lab, separately, photographs and studies one of the chips for a teaching course. That is reproduction for teaching, and sub-section (2) says it is not infringement. A design house then studies the chip and draws a layout of its own that meets the originality test. Sub-section (3) allows it to make and sell that design.
Need help with an infringement concern?
If you suspect copying, or you have received a complaint about chips you import or sell, our IP watch and enforcement team can review the layout, the chips and the exceptions that may apply.
Key takeaways
- Infringers are persons who are neither the registered proprietor nor a registered user.
- Reproducing a registered layout in whole or part infringes, except for parts that are not original.
- Importing, selling or distributing the layout, a chip or an article incorporating it, for commercial purposes, infringes unless an exception applies.
- Reproduction for scientific evaluation, analysis, research or teaching is not infringement.
- A new original layout created from analysis can be used; the original proprietor's later use of it is infringement after its registration.
Read next
- Section 18(5) to (8): innocent buyers, royalty and independent creation
- Sections 56 to 59: penalties
- Section 7: originality
Disclaimer: Based on the Semiconductor Integrated Circuits Layout-Design Act, 2000 (never amended; commencement as notified in 2004, 2011 and 2014) and the Semiconductor Integrated Circuits Layout-Design Rules, 2001 as amended by G.S.R. 689(E) of 14 September 2012, as consulted on 3 October 2026. Check sicldr.gov.in for later notifications and current forms and fees. This article is general information, not legal advice; check the official text before acting.