Sections 16 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.
Chapter IV is short but decisive. Section 16 says nobody can start a proceeding to prevent, or to recover damages for, the infringement of an unregistered layout-design. Section 17 says that registration, if valid, gives the registered proprietor the exclusive right to use the layout-design and to obtain relief for infringement as the Act provides, whether or not the layout-design is incorporated in an article.
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. Sections 16 and 17 have been in force since 1 May 2011.
Section 16: "No person shall be entitled to institute any proceeding to prevent, or to recover damages for, the infringement of an unregistered layout-design." Section 17: registration, if valid, gives the registered proprietor "the exclusive right to the use of the layout-design" and to obtain relief "in the manner provided by this Act". The Explanation adds that the right is available whether or not the layout-design is incorporated in an article. A chip company that wants enforcement rights should register first; our IP watch and enforcement service can monitor for copying once it has.
Section 16: unregistered layout-designs
The section is a bar. It does not say that an unregistered layout-design has no value, or that copying it is lawful in every sense. It says no person "shall be entitled to institute any proceeding" for two things: to prevent infringement, or to recover damages for infringement, of an unregistered layout-design. The words "any proceeding" are wide. They cover an injunction-type remedy ("to prevent") and a money remedy ("to recover damages").
| What the proprietor seeks | Unregistered layout-design | Registered layout-design |
|---|---|---|
| A proceeding to prevent infringement | Barred by section 16 | Available as the Act provides (section 17) |
| A proceeding to recover damages for infringement | Barred by section 16 | Available as the Act provides (section 17) |
| Exclusive right to use | None under the Act | Given by section 17, if the registration is valid |
Section 16 is a reason to file early. Under section 13(1), the registration is dated back to the application date, but only once the Registrar has actually registered the layout-design. While an application is pending, the layout-design is on its face unregistered, and the text of section 16 does not carve out pending applications. A creator who has filed but not yet been registered should read the section with that in mind.
Section 17: the exclusive right
"Subject to the other provisions of this Act, the registration of a layout-design shall, if valid, give to the registered proprietor of layout-design the exclusive right to the use of the layout-design and to obtain relief in respect of infringement in the manner provided by this Act."
Four phrases carry the weight.
- "Subject to the other provisions of this Act." The exclusive right yields to the exceptions elsewhere, notably the limits in section 18(2) to (8) (research, independent creation, innocent buyers, consent and goods on the market) and Government use under section 51.
- "If valid." The right depends on a valid registration. Section 19 makes the registration prima facie evidence of validity; see sections 19 to 21.
- "Registered proprietor." Under section 2(o) this is the person entered in the register as proprietor. A licensee has no exclusive right unless the Act gives it; a registered user can complain under section 28 but has no assignable right under section 29.
- "In the manner provided by this Act." The Act does not say here what the manner is. It points to the Act's own provisions.
The Explanation
"For removal of doubts, it is hereby declared that the rights conferred by the registration of a layout-design shall be available to the registered proprietor of that layout-design irrespective of the fact as to whether the layout-design is incorporated in an article or not."
This matters because chips are usually sold inside products. A proprietor does not lose rights because the layout-design sits inside a phone, a controller board or a meter. Section 18(1)(b) covers articles incorporating a circuit that contains the registered layout-design; see section 18(1) to (4).
What "relief in the manner provided by this Act" can be read as
The Act has no section headed as a civil suit for infringement, in the way other IP statutes do. The remedies it does set out are these:
| Provision | What it provides |
|---|---|
| Section 18 | Defines infringement and its exceptions |
| Section 18(5) | Royalty from an innocent person on stock, by negotiation or by the Appellate Board |
| Section 28 | A registered user may complain before the competent criminal court |
| Sections 56 to 59 | Penalties for infringement and related false entries |
| Section 60 | Forfeiture of goods on conviction |
The Appellate Board items sit in Chapter VIII; no notification bringing sections 32 to 53 (and 55) into force was found in the India Code record or on the Registry's notifications page (checked 3 October 2026); check the current position before relying on them. This article does not read in a civil suit that the text does not contain. For a particular dispute, check the current law with a lawyer. The penal provisions are in our article on sections 56 to 59.
A worked example
A fabless start-up in Bengaluru has designed a layout for an energy-metering chip and begins selling it. A rival copies the layout. The start-up has not applied to register. Section 16 bars it from instituting a proceeding to prevent the copying or recover damages. Had it applied and obtained registration, section 17 would have given it the exclusive right to use the layout-design, and the Explanation would apply even though the rival sells meters with the chip inside, not loose chips.
Need help enforcing a layout-design?
Whether you are registering a layout to gain the exclusive right or watching the market for copies, our IP watch and enforcement team can help you set up monitoring and prepare the material for any complaint.
Key takeaways
- Section 16 bars any proceeding to prevent infringement, or recover damages, for an unregistered layout-design.
- Section 17 gives the registered proprietor the exclusive right to use the layout-design, if the registration is valid.
- The right applies whether or not the layout-design is incorporated in an article.
- The right is subject to the other provisions of the Act.
- The Act has no separate civil-suit section; relief is "in the manner provided by this Act".
Read next
- Sections 13 to 15: registration and the ten-year term
- Section 18(1) to (4): infringement
- Sections 24 and 25: registered users
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.