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Sections 19–21 of the Semiconductor Integrated Circuits Layout-Design Act, 2000: registration as prima facie evidence of validity, the proprietor's power to assign, and assignment with or without goodwill

In legal proceedings about a registered layout-design, the original registration and all later assignments and transmissions are prima facie evidence of validity. A registered...

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Last updated: October 2026Verified against: Government sources

Section 19 treats registration, and later assignments and transmissions, as prima facie evidence of validity in legal proceedings. Chapter V opens with sections 20 and 21: the person on the register can assign the layout-design and give receipts for the price, and a registered layout-design can be assigned or transmitted with or without the goodwill of the business. If you are buying or selling a chip layout, these sections tell you what you can do and what the register supports, and an agreement drafting review before signing is sensible.

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 19 to 21 have been in force since 1 May 2011.

Section 19(1): prima facie evidence

"In all legal proceedings relating to a layout-design registered under this Act (including application under section 30), the original registration of the layout-design and all subsequent assignments and transmissions of layout-design shall be prima facie evidence of the validity thereof."

Prima facie evidence is evidence that stands until it is displaced. It does not make the registration unchallengeable. Three things are covered: the original registration, every later assignment and every later transmission. The reference to "application under section 30" brings rectification proceedings within the rule; see sections 30 and 31.

For a buyer, the point is that the chain of entries on the register supports the title. A buyer of a layout-design should check that each earlier assignment appears on the register, because section 23(2) says an unrecorded document is not admitted in evidence of title unless the forum directs otherwise (see sections 22 and 23).

Section 19(2): the limit on invalidity pleas

"In all legal proceedings as aforesaid, a registered layout-design shall not be held to be invalid on the ground that it was not a registerable layout-design under section 7 except upon evidence of originality and that such evidence was not submitted to the Registrar before registration."

The sentence is compressed. Read together, it limits attacks based on section 7: the design is not held invalid for being non-registrable under that section unless there is evidence of originality, and that evidence was not submitted to the Registrar before registration. The text is not clear on which side must bring the evidence. It reads as protecting the registration where the originality evidence was before the Registrar, and as allowing the challenge where it was not. The wording is awkward. Do not rely on a reading without legal advice on the actual proceedings.

ProvisionRuleEffect
19(1)Registration and later assignments and transmissions are prima facie evidence of validityA challenger must displace the evidence
19(2)No invalidity for failure of section 7 except on the evidence describedNarrows section 7 challenges after registration

Section 20: power to assign and give receipts

"The person for the time being included in the register as proprietor of a layout-design shall, subject to the provisions of this Act and to any right appearing from the register to be vested in any other person, have power to assign the layout-design, and to give effectual receipts for any consideration for such assignment."

Two limits are built in: the Act's own provisions, and "any right appearing from the register to be vested in any other person". A buyer should therefore read the register for entries such as registered users or other recorded rights before paying. The receipt power helps the buyer: the proprietor on the register can give a receipt that discharges the buyer for the price. Without the entry, there is no such power on the face of the Act.

Section 21: assignable and transmissible, with or without goodwill

"Notwithstanding anything in any other law to the contrary, a registered layout-design shall, subject to the provisions of this Chapter, be assignable and transmissible whether with or without the goodwill of the business concerned."

The phrase "notwithstanding anything in any other law to the contrary" removes any other law that would restrict transfer. The restriction that does apply is within Chapter V itself: an assignment without goodwill must follow the advertisement conditions in section 22, and any assignment or transmission must be applied for on the register under section 23. Our next article covers both: sections 22 and 23.

Section 2(b) defines assignment as "an assignment in writing by act of the parties concerned", so an oral transfer is not an assignment for this Act. Transmission under 2(t) covers operation of law, devolution on a deceased person's representative and other modes of transfer that are not assignment.

What the Rules add

The Rules deal with registering assignments and transmissions in Rules 47 to 54, including Forms LD-10 and LD-11 under rule 47; see Rules 47 to 54. Fees for those forms are in Schedule I.

A worked example

A fabless start-up sells the registered layout for a sensor chip to a larger electronics manufacturer, and the manufacturer wants to buy the design without the start-up's brand or other business. Section 21 allows assignment without goodwill, but section 22 then makes the assignment conditional on directions about advertisement. The manufacturer checks the register under section 20: the start-up is entered as proprietor, and no registered user appears. The start-up signs a written assignment, gives a receipt for the price, and the manufacturer applies to register its title. Later, if a rival challenges the registration, the original registration and the recorded assignment are prima facie evidence of validity under section 19(1).

Need help with an assignment?

A layout-design sale, a transfer within a group or a licence with an assignment element should be written carefully. Our agreement drafting team can prepare the assignment deed and the filing set for the register.

Key takeaways

  • Registration, and later assignments and transmissions, are prima facie evidence of validity.
  • Section 19(2) limits section 7 invalidity pleas to the case described.
  • The person on the register can assign and give effectual receipts, subject to the Act and to rights shown on the register.
  • Registered layout-designs are assignable and transmissible with or without goodwill.
  • Written assignments, and applications to register title, are the next steps.

Read next

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.

Quick recapKey facts & short answers

Key Facts About Sections 19

  • 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 registration prove my layout-design is valid?

It is prima facie evidence of validity in legal proceedings (section 19(1)). That is evidence that can be displaced.

Can a registered design be struck down for not being original?

Section 19(2) limits that ground to the case it describes, involving evidence of originality that was not submitted to the Registrar before registration.

Ask the question before you sign — it is always cheaper than asking it afterwards.

— TaxClue Compliance Desk

Sections 19: 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.

It is prima facie evidence of validity in legal proceedings (section 19(1)). That is evidence that can be displaced.

Section 19(2) limits that ground to the case it describes, involving evidence of originality that was not submitted to the Registrar before registration.

The person for the time being included in the register as proprietor, subject to the Act and to rights shown on the register.

Yes. Section 21 allows assignment with or without goodwill, but section 22 adds conditions for assignment without goodwill.

Section 2(b) defines assignment as one in writing by act of the parties.

It says "notwithstanding anything in any other law to the contrary", subject to the provisions of Chapter V.