Layout Design 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.
Sections 40 to 44 are the working core of Chapter VIII: the Appellate Board's power to fix royalty, cancel a registration, hear appeals from the Registrar, follow its own procedure and keep other courts out. They are set out below as enacted.
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.
Commencement: 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. As enacted, the registered proprietor may apply to the Board to fix royalty under section 18(5); any person may apply to cancel a registration (wholly or in part) on a section 7 ground, or an assignment contrary to law; and any person aggrieved by a Registrar's order may appeal within three months of its communication. The Act names no other forum for these matters, and section 44 bars other courts.
Why the commencement line comes first
Everything in this article depends on a Board that the Central Government must establish by notification under section 32. No such notification was found, and this article does not say the Board exists or sits. If you hold a Registrar's order against which you want to appeal, a legal dispute resolution adviser should check the current position before any period is relied on. See the background in our article on sections 32 to 39.
Section 40: royalty
Section 40(1): the registered proprietor "may make an application to the Appellate Board for determination of royalty under sub-section (5) of section 18". Section 18(5) is the innocent-dealer provision; see section 18(5) to (8).
- 40(2). The application is in the prescribed form, with affidavits, documents or other evidence and the prescribed fees, including fees for service or execution of processes.
- 40(3). On receipt, the Board gives notice to the opposite party to file opposition within the prescribed time and manner, gives the applicant and the opposite party an opportunity of being heard, and disposes of the application.
- 40(4). The order or decision "shall be executable by a civil court having local jurisdiction as if it were a decree made by that court".
Section 41: cancellation of registration
| Item | Content |
|---|---|
| 41(1) | "Any person" may apply in the prescribed form with the prescribed fee for cancellation of (a) the registration of a layout-design, on the ground that it is prohibited for registration under section 7; or (b) the registration of an assignment or transmission, on the ground that it is contrary to any provision of the law for the time being in force |
| 41(2) | The Board gives notice to the opposite parties, hears them and makes the order it deems fit |
| Proviso | If the ground is established only for a part of the layout-design, only that part is cancelled, and the remaining part, if capable of performing as a semiconductor integrated circuit, stays registered in the proprietor's name |
| 41(3) | Cancellation, whole or partial, is "deemed to be effective on the date from which the period of ten years referred to in section 15 is countable" |
| 41(4) | The Board sends a copy of the cancellation order to the Registrar without delay, and the Registrar corrects the register |
Two points. The partial-cancellation proviso lets a proprietor keep what survives, but only if the surviving part can still perform as a circuit. And sub-section (3) makes cancellation effective from the date the ten-year term under section 15 starts, which can be a date earlier than the date of the order. The Act gives no further explanation of the effect on past dealings.
Section 42: appeals from the Registrar
- Who and when (42(1)). "Any person aggrieved by an order or decision of the Registrar under this Act, or the rules made thereunder may prefer an appeal to the Appellate Board within three months from the date on which the order or decision sought to be appealed against is communicated to such person".
- Late appeals (42(2)). No appeal is admitted after the three months, except that it may be admitted if the appellant satisfies the Board that he had sufficient cause for not preferring it within the period.
- Form (42(3)). The appeal is in the prescribed form, verified in the prescribed manner, with a copy of the order appealed against and the prescribed fees.
The period runs from communication of the order. The text does not define how an order is communicated; the Rules deal with notification of decisions. The Act gives no other forum for an appeal from the Registrar. See the Rules on the Board's procedure in Rules 69 to 74, which carry the Forms (for example Form LD-33 for cancellation under rule 69).
Section 43: procedure and powers
- 43(1). The Board "shall not be bound by the procedure laid down in the Code of Civil Procedure, 1908" but is guided by principles of natural justice and, subject to the Act and Rules, may regulate its own procedure, including places and times of hearing.
- 43(2). For its functions it has the same powers as a civil court under the Code of Civil Procedure, 1908 when trying a suit in respect of receiving evidence, issuing commissions for examination of witnesses, requisitioning any public record, and any other matter prescribed.
- 43(3). A proceeding before the Board is deemed a judicial proceeding within the meaning of sections 193 and 228, and for the purpose of section 196, of the Indian Penal Code (45 of 1860), and the Board is deemed a civil court for all purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974).
The Act cites the Code of Civil Procedure, the Indian Penal Code and the Code of Criminal Procedure by these names and numbers. Those statutes are older enactments; check the current law that applies to them before relying on the references.
Section 44: bar on other courts
"No court or other authority shall have or, be entitled to, exercise any jurisdiction, powers or authority in relation to the matters referred to in sub-section (1) of section 40 or sub-section (1) of section 42." So royalty applications and appeals from the Registrar belong to the Board alone, in the text. Because no commencement notification was found for sections 32 to 53, the working effect of this bar should be taken from legal advice on the current position, not from the printed text.
A worked example
A fabless start-up's application is refused by the Registrar, and the order is communicated to it. As enacted, section 42 would let it appeal to the Board within three months of communication, with the order attached and the prescribed fee; after three months only on proof of sufficient cause. Because the Board's commencement is not shown, the start-up first checks with a lawyer what route is available today.
Need help with an appeal or cancellation?
When a Registrar's order, a royalty claim or a cancellation application is in play, the forum question and the time limit decide the outcome. Our legal dispute resolution team can review the order and set out the options.
Key takeaways
- The commencement of Chapter VIII is not shown: no notification was found.
- As enacted, the proprietor may apply to the Board for royalty under section 18(5); any person may apply for cancellation.
- Partial cancellation leaves a surviving part registered if it can perform as a circuit.
- Appeals from the Registrar lie within three months of communication, with late appeals on sufficient cause.
- Section 44 bars other courts and authorities from these matters.
Read next
- Sections 32 to 39: the Board
- Sections 45 to 49: interim orders and the Registrar's appearance
- Rules 69 to 74: Board procedure under the Rules
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.