Sections 22 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.
Two rules decide whether a transfer of a registered layout-design holds up. Under section 22, an assignment made without the goodwill of the business does not take effect unless the assignee applies to the Registrar for advertisement directions within six months (extendable by up to three) and advertises as directed. Under section 23, the new owner must apply to register title, and an unregistered document is not admitted in evidence of title.
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 22 and 23 have been in force since 1 May 2011. If you are acquiring a layout, an agreement drafting review should cover both steps.
An assignment otherwise than in connection with goodwill does not take effect unless the assignee, within six months from the assignment (or an extended period of not more than three months in the aggregate), applies to the Registrar for directions on advertisement and then advertises as directed. Anyone entitled by assignment or transmission must apply to register title. If validity is disputed, the Registrar may refuse until a competent court decides. A document not entered in the register is not admitted in evidence of title unless the forum directs otherwise.
Section 22: assignment without goodwill
Section 21 allows assignment with or without goodwill. Section 22 attaches a condition to the second kind. Where an assignment is made "otherwise than in connection with the goodwill of business in which such layout-design has been or is used, the assignment shall not take effect unless" two things happen:
- The assignee applies to the Registrar for directions with respect to the advertisement of the assignment "not later than the expiration of six months from the date on which the assignment is made or within such extended period, if any, not exceeding three months in the aggregate, as the Registrar may allow".
- The assignee advertises the assignment "in such form and manner and within such period as the Registrar may direct".
| Step | Period or content | Printed in |
|---|---|---|
| Application for advertisement directions | Within six months of the assignment | Section 22 |
| Extension | Up to three months in the aggregate, as the Registrar allows | Section 22 |
| Advertisement | In the form, manner and period the Registrar directs | Section 22 |
| Result of missing the steps | The assignment does not take effect | Section 22 |
The consequence is strong. "Shall not take effect" means the assignment has no effect under the Act until the steps are done. Note the order of words: the assignee applies "not later than" the six months, so the application itself, not the advertisement, must be inside the period. The advertisement then follows the Registrar's direction. The Act does not say what the Registrar considers when allowing an extension.
The Rules contain forms for this route, including Forms LD-8 and LD-9 under rule 53, covered in Rules 47 to 54. Do not compute the six months here; the date of the assignment is the date it is made, and a lawyer should check the exact calendar on your documents.
Section 23(1): registering title
"Where a person becomes entitled by assignment or transmission to a registered layout-design, he shall apply in the prescribed manner to the Registrar to register his title, and the Registrar shall, on receipt of the application and on proof of his title to his satisfaction, register him as the proprietor of the layout-design and shall cause particulars of the assignment or transmission to be entered on the register."
Three duties follow. The new owner must apply. The Registrar must be satisfied on proof of title. And once satisfied, the Registrar registers the new owner as proprietor and enters the particulars. The Act sets no time limit for the application in section 23(1); the practical pressure comes from sub-section (2).
The proviso: disputed validity
"Where the validity of an assignment of transmission is in dispute between the parties, the Registrar may refuse to register the assignment or transmission until the rights of the party have been determined by a competent court." The proviso says "assignment of transmission" in the printed text; read it as "assignment or transmission". The Act does not name the court. A start-up facing a disputed assignment should expect the Registrar to wait for a court.
Section 23(2): the evidence bar
"Except for the purpose of an application before the Registrar under sub-section (1) or an appeal from an order thereon, or an application under section 30 or an appeal from an order thereon, a document or instrument in respect of which no entry has been made in the register in accordance with sub-section (1), shall not be admitted in evidence by the Registrar or the Appellate Board or any court in proof of title to the layout-design by assignment or transmission unless the Registrar or the Appellate Board or the court, as the case may be, otherwise directs."
| Where the document is offered | Admitted as proof of title? |
|---|---|
| In an application to register title under 23(1), or an appeal from the order | Yes, this is the excepted use |
| In an application to rectify the register under section 30, or an appeal from the order | Yes, also excepted |
| Anywhere else, with no register entry | No, unless the Registrar, the Board or the court directs otherwise |
The Board is mentioned here, but 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 it. For the Registrar and courts the bar applies in any event. The rectification route is in sections 30 and 31.
A worked example
A fabless company sells a registered layout for an image-sensor chip to an equipment maker, without the goodwill of its other business, by a written deed on the first of a month. The equipment maker applies to the Registrar for directions on advertisement within the six months, advertises as directed, and applies to register title with the deed. Had it neither applied nor advertised, the assignment would not have taken effect. Had it skipped the register application, the deed would not be admitted to prove its title in later proceedings unless the forum directed otherwise.
Need help with registering a transfer?
If you are buying a layout-design or restructuring a group that holds them, our agreement drafting team can prepare the deed and track the advertisement and registration steps.
Key takeaways
- An assignment without goodwill does not take effect until the assignee applies for advertisement directions within six months (or the extended period) and advertises as directed.
- The extension is not more than three months in the aggregate.
- A person entitled by assignment or transmission must apply to register title.
- If validity is in dispute the Registrar may wait for a competent court.
- An unregistered document is not admitted as proof of title, except in the situations the section lists.
Read next
- Sections 19 to 21: validity and the power to assign
- Rules 47 to 54: the Rules on registering assignments
- 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.