Sections 50 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.
The last four sections of the Board's working chapter cover a reference on a two-year question (section 50), the Board's power to permit the Government or its authorised person to use a registered layout-design (section 51), the Registrar's costs (section 52) and appeals from the Board to the High Court (section 53). Each is described here 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 Board may permit use of a registered layout-design by the Government or a person it authorises, on conditions such as non-commercial public purposes, national emergency or extreme public urgency, limited duration, no assignment, remedying anti-competitive practice and supply mainly to the Indian market, and it fixes the royalty. The Registrar refers the two-year exploitation question to the Board. An aggrieved person may appeal the Board's decision to the High Court.
Commencement first
The text below depends on an Appellate Board that the Central Government is to establish under section 32. No notification was found for sections 32 to 53, and this article does not say the Board exists. The Act gives no other forum for these powers. Because section 51 concerns the Government and a proprietor's exclusive right, a company that holds a registered layout-design should take legal dispute resolution advice before relying on any reading of it. See sections 32 to 39.
Section 50: the two-year question
"If any question arises in any proceedings before Registrar, whether a layout-design has been commercially exploited for more than two years anywhere in a convention country for the purpose of registration of such layout-design under this Act, the Registrar shall refer such question to the Appellate Board, and the decision of the Board thereon shall be final." This links to the two-year allowance in section 7. The reference is mandatory ("shall refer") and the Board's decision is "final". The Registrar cannot decide that question himself, on the text.
Section 51: permitted use by the Government
51(1): who may apply and on what conditions
"Notwithstanding anything contained in this Act", the Board "may on an application made in the prescribed manner before it on behalf of the Government or by any person authorised by the Government", after giving notice to the registered proprietor and an opportunity of being heard to the parties, permit the use of a registered layout-design by the Government or by the authorised person, subject to any or all of these conditions as the Board deems fit:
| Clause | Condition |
|---|---|
| (a) | Use is for non-commercial public purposes or for purposes relating to national emergency or of extreme public urgency |
| (b) | The duration of use is limited to a period the Board specifies |
| (c) | The use is non-assignable and non-transmissible |
| (d) | The use is to the extent the Board deems necessary to remedy the anti-competitive practice |
| (e) | The use is predominantly for supply of semiconductor integrated circuits or articles incorporating them in the domestic market of India |
The Board picks the conditions that fit the circumstances: "any or all" of them.
The two provisos
- Efforts to agree. The Board shall not permit use by a person authorised by the Government "unless the Board is satisfied that such person so authorised has made efforts to enter into agreement with the registered proprietor of such layout-design on reasonable commercial terms and conditions", and such efforts had not been successful within the prescribed period. Rule 71 prescribes the period as six months, so the Board must be satisfied that efforts failed within six months.
- Exemption. The first proviso does not apply if the authorised person produces a certificate issued by the Government to the effect that the use is required due to national emergency or any other circumstances the Government considers to be of extreme urgency or of public non-commercial use.
51(2) and (3): royalty and review
While granting the permission, the Board determines "the amount of royalty to be paid by the Government or the person authorised by the Government" to the registered proprietor. The registered proprietor may apply for review. After notice and a hearing in the prescribed manner, the Board may cancel or amend the permission if satisfied that a condition has not been observed or the circumstances which led to the permission have ceased to exist or substantially altered.
| Step | Who | Rule and form |
|---|---|---|
| Application for permission | Government or authorised person | Rule 70, Form LD-34, with prescribed fee |
| Efforts period | Authorised person (unless certificate) | Rule 71: six months |
| Review request | Registered proprietor | Rule 72, Form LD-29, with prescribed fee; notice on Form OLD-9; hearing date at least one month after the notice unless the parties consent to shorter notice |
The Rules are explained in Rules 69 to 74.
Section 52: costs of the Registrar
"In all proceedings under this Act before the Appellate Board the costs of the Registrar shall be in the discretion of the Board, but the Registrar shall not be ordered to pay the costs of any of the parties." So the Registrar can be awarded costs but never ordered to pay them.
Section 53: appeal to the High Court
- 53(1). "Any person aggrieved by any decision or order of the Appellate Board under this Act may, within the prescribed period appeal to the High Court" within whose jurisdiction the head office or the branch office of the Registry (against whose decision or order the appeal arises) is situated. Rule 91 prescribes three months from the date of the Board's decision or order, or such further time as the High Court may allow, on Form LD-35 with the prescribed fee.
- 53(2). The appeal is by petition in writing in the prescribed form with the prescribed particulars.
- 53(3). Subject to the Act and Rules, the Code of Civil Procedure, 1908 applies to appeals before a High Court under the Act. The Code is an older statute; check the current law before relying on the reference.
Section 54 lets High Courts make rules on the conduct of these proceedings; see sections 54 and 55. The Rules on High Court appeals are in Rules 86 to 92.
A worked example
A State agency needs access to a registered layout for a metering chip needed for a public health programme. As enacted, it would apply to the Board with the Government's authorisation. The Board would give notice to the proprietor and hear both sides, permit use on conditions such as limited duration and non-assignability, and fix the royalty. Unless the agency holds a Government certificate of extreme urgency, the Board would first need to be satisfied that the agency tried for six months to agree terms with the proprietor. Either side could, if aggrieved by the Board's decision, appeal to the High Court. All of this assumes the Board is in force, for which no notification was found.
Need help with Government use or an appeal?
Whether you hold a layout-design that the Government may want to use, or you need to understand how an appeal would travel, our legal dispute resolution team can map the provisions to your facts.
Key takeaways
- No commencement notification was found for sections 32 to 53 and 55.
- Section 50 sends the two-year commercial exploitation question to the Board and its decision is final.
- Section 51 lets the Board permit Government use on listed conditions and fixes the royalty.
- The first proviso needs efforts to agree for six months (rule 71) unless a Government certificate of urgency is produced.
- Section 53 provides an appeal to the High Court; rule 91 prescribes three months.
Read next
- Sections 45 to 49: procedure before the Board
- Sections 54 and 55: High Court rules and the transitional provision
- Rules 69 to 74: Board forms
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.