Sections 24 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.
A registered proprietor who lets another company use a registered layout-design can have that company entered on the register as a "registered user". Section 24 says that is possible. Section 25 sets out how: a joint written application, the licence agreement, an affidavit about control and restrictions, any further documents, registration by the Registrar, notice to other registered users and, on request, confidentiality for the information supplied.
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 24 and 25 have been in force since 1 May 2011. A licence that is meant to be registered should be prepared by an agreement drafting team with section 25 in mind.
A person other than the registered proprietor may be registered as a registered user (section 24). The proprietor and the proposed user jointly apply in writing to the Registrar, with the agreement between them on the permitted use and an affidavit giving the relationship, the degree of control by the proprietor, any sole-user or other restriction, conditions on place or other matters, and whether the use is for a period or without limit. When the requirements are met, the Registrar shall register the user. On request, he takes steps so that the information is not disclosed to rivals in trade.
Section 24: who may be registered
"Subject to the provisions of section 25, a person other than the registered proprietor of a layout-design may be registered as a registered user thereof." The section is permissive: "may be". It does not require the proprietor to register a licensee. But a licensee who is not registered is outside the benefits the Act gives to a "registered user", for example the right to complain under section 28. The meaning of "registered user" is in section 2(p): a person for the time being registered as such under section 25.
Section 25(1): the joint application and its attachments
"The registered proprietor and the proposed registered user shall jointly apply in writing to the Registrar in the prescribed manner." Both sign the application. The proprietor alone cannot register a licensee, and a licensee alone cannot register itself.
The application must be accompanied by the following.
| Item | Section | What it must contain |
|---|---|---|
| The agreement | 25(1)(a) | The agreement in writing, or a duly authenticated copy, between the registered proprietor and the proposed user "with respect to the permitted use of the layout-design" |
| An affidavit by the proprietor, or a person authorised to the satisfaction of the Registrar | 25(1)(b) | Particulars as set out in (i) to (iii) below |
| Further documents or evidence | 25(1)(c) | Whatever the Registrar requires or is prescribed |
The three heads of the affidavit
(i) Relationship and control. Particulars of the relationship, existing or proposed, between the proprietor and the proposed user, "including particulars showing the degree of control by the proprietor over the permitted use which the relationship will confer". It must also say whether it is a term that the proposed user is the sole registered user, or that there is any other restriction as to the persons for whose registration an application may be made.
(ii) Conditions and restrictions. The conditions or restrictions, if any, proposed "with respect to the place of permitted use or any other matter".
(iii) Duration. Whether the permitted use is for a period or without limit of period, and if for a period, how long.
The affidavit is the key document for the Registrar. A licence between a design owner and a foundry might say the foundry may fabricate the layout only at one fab. That is a condition on "the place of permitted use" and belongs in the affidavit.
Section 25(2) to (4): registration, notice and confidentiality
- Registration (25(2)). "Where the requirement of sub-section (1) have been complied with, the Registrar shall register the proposed registered user." The word "shall" removes his discretion when the requirements are met.
- Notice (25(3)). The Registrar issues notice, in the prescribed manner, of the registration to other registered users of the layout-design, if any.
- Confidentiality (25(4)). "The Registrar shall, if so requested by the applicant, take steps of securing that information given for the purposes of an application under this section (other than matters entered in the register) is not disclosed to rivals in trade." The request must come from the applicant. Matters entered in the register are not covered by this protection, so the entries themselves can be seen.
The Rules prescribe the manner, Form LD-13 and the entry in the register; see Rules 55 to 58. Fees are in Schedule I of the Rules and are not repeated here.
What registration changes
| Position | Unregistered licensee | Registered user |
|---|---|---|
| Entered on the register | No | Yes |
| May complain to the criminal court for infringement under section 28 | Not as a registered user | Yes, subject to agreement with the proprietor |
| Can assign or transmit the right | Not under the Act | No: section 29 gives no assignable or transmissible right |
| Can be cancelled | Not applicable | Yes, under section 26 |
The cancellation grounds are in the next group of sections: see sections 26 to 29. A registered user has no assignable right, so a licensee cannot hand its licence to a third party under the Act. A registered proprietor should think about who the user is before registering.
A worked example
A Hyderabad design company registered as proprietor of a layout for a sensor chip licenses a manufacturer in Gujarat to use it. The two sign a written licence for a fixed period. They jointly apply to the Registrar. The proprietor's affidavit says the proprietor will approve each production run, which shows the degree of control; that the manufacturer is the sole registered user; that use is limited to one plant; and that the licence runs for a stated number of years. The Registrar asks for one further document under 25(1)(c). Once it is given, he registers the manufacturer. The applicants asked for confidentiality, so the Registrar takes steps to keep the licence terms from rivals in trade, except for the entries on the register.
Need help with a layout-design licence?
If you want a licence that can be registered, or you are a licensee who needs to show you are a registered user, our agreement drafting team can prepare the agreement, the affidavit and the joint application.
Key takeaways
- Any person other than the registered proprietor may be registered as a registered user.
- The proprietor and the proposed user must apply jointly in writing.
- The agreement and the affidavit on control, restrictions and duration must accompany the application.
- The Registrar shall register the user when the requirements are met, and gives notice to other registered users.
- On request, the Registrar secures the information (other than register entries) from rivals in trade.
Read next
- Sections 26 to 29: cancelling registered users
- Rules 55 to 58: Form LD-13
- Sections 19 to 21: assignment
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.