Sections 68 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.
Chapter X opens with four sections of general effect. Section 68 limits what the Registrar discloses and lets the Central Government direct action, including cancellation, in the interest of the security of India. Section 69 bars suits for things done in good faith under the Act. Section 70 makes officers and Board Members public servants. Section 71 puts a warranty into every sale of a registered layout-design, a chip incorporating one or an article with such a chip: that the registration is genuine, unless the seller says otherwise in signed writing.
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 68 to 71 have been in force since 1 May 2011. If you sell chips under supply contracts, a contract review and vetting check against section 71 is worthwhile.
The Registrar must not disclose information about a registration or application that the Central Government considers prejudicial to the security of India, and must take any action, including cancellation, that the Government specifies by notification in that interest. No suit lies for things done in good faith under the Act. Persons appointed under the Act and Members of the Board are public servants. On sale of a registered layout-design, a chip or an article containing one, the seller is deemed to warrant that the registration is genuine, unless the contrary is expressed in writing signed by or for the seller and delivered and accepted at the time.
Section 68: security of India
"Notwithstanding anything contained in this Act, the Registrar shall":
- (a) not disclose any information relating to the registration of a layout-design, or any application relating to registration, "which the Central Government considers prejudicial to the interest of the security of India"; and
- (b) "take any action, including the cancellation of registration of a layout-design registered under this Act, which the Central Government may, by notification in the Official Gazette, specify in the interest of security of India".
The Explanation
For this section, "the interest of the security of India" means any action necessary for the security of India which relates to the use of a layout-design, a circuit incorporating it or an article incorporating such a circuit and which:
| Clause | Subject |
|---|---|
| (a) | Relates to fissionable materials or the materials from which they are derived |
| (b) | Relates to the traffic in arms, ammunition and implements of war and to such traffic in other goods and materials as is carried on directly or indirectly for the purpose of supplying a military establishment |
| (c) | Is taken in time of war or other emergency in international relations |
The power operates by Government notification. The Act does not say that the proprietor is heard before a security action. It also overrides the Act ("notwithstanding anything contained in this Act"), including the public inspection provisions. A company supplying defence electronics should know that a layout-design registration can be affected by this section.
Section 69: protection of good faith
"No suit or other legal proceedings shall lie against any person in respect of anything which is in good faith done or intended to be done in pursuance of this Act." The words "or intended to be done" extend the protection to acts planned but not yet carried out. The test is good faith and pursuance of the Act. The section does not name the Registrar or the Government; it covers "any person". The text does not say whether it bars a challenge to the order itself, only proceedings in respect of the thing done.
Section 70: public servants
"Every person appointed, under this Act and every Member of the Appellate Board shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860)." The Indian Penal Code is an older enactment; check the current law on how the reference is read today. For readers, the practical meaning is that officers of the Registry are treated as public servants for the purposes of that Code's definition. The Board mention follows the same commencement note as the Board sections: 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.
Section 71: implied warranty on sale
"Where a registered layout-design, or a semiconductor integrated circuit in which a registered layout-design is incorporated, or an article incorporating such a semiconductor integrated circuit is sold or has been contracted for sale, the seller shall be deemed to warrant that the registration, of such layout-design or the layout-design so incorporated is genuine within the meaning of this Act unless the contrary is expressed in writing signed by or on behalf of the seller and delivered at the time of the sale or contract to sell of such layout-design, or semiconductor integrated circuit or article, as the case may be, and accepted by the buyer."
Reading the section
| Element | What the text requires |
|---|---|
| What is sold | A registered layout-design, a chip incorporating one, or an article incorporating such a chip, sold or contracted for sale |
| Warranty deemed | That the registration is genuine within the meaning of the Act |
| How to exclude | The contrary is expressed in writing, signed by or on behalf of the seller, delivered at the time of sale or contract to sell, and accepted by the buyer |
Three points follow. First, the warranty is about the genuineness of the registration, not about validity or non-infringement; the text does not warrant those. Second, it applies on sale or contract for sale, so it can arise before delivery. Third, to opt out, the seller needs a signed writing delivered at the time of the sale or contract and accepted by the buyer; a clause buried in a catalogue is not on its face enough.
For sellers who describe chips as "registered", this section links to section 57, where the word "registered" is deemed to refer to the Indian register unless the foreign registration is made clear: see sections 56 to 59. For a buyer, the deemed warranty sits alongside the protection for innocent buyers in section 18(5) to (8).
A worked example
An electronics importer buys chips from an overseas supplier and sells them to a board maker, with the purchase order stating that the chips incorporate a layout-design registered in India. Under section 71 the importer is deemed to warrant that the registration is genuine. If the importer does not want to give that warranty, it must put the contrary in a signed writing delivered at the time of the contract and accepted by the board maker. In a separate case, a defence supplier finds that the Government has notified an action under section 68(b) affecting a layout-design it licenses; the Registrar must take the specified action, whatever the Act otherwise says.
Need help with supply terms and warranties?
If you sell chips or articles that incorporate a registered layout-design, our contract review and vetting team can check your supply terms against section 71 and your disclosure duties.
Key takeaways
- The Registrar must withhold information and take action the Government specifies in the interest of the security of India, including cancellation.
- No suit lies for acts done in good faith in pursuance of the Act.
- Persons appointed under the Act and Board Members are deemed public servants under the Indian Penal Code, section 21.
- A seller of a registered layout-design, chip or article is deemed to warrant that the registration is genuine.
- The warranty is displaced only by a signed writing delivered at the time of sale or contract and accepted by the buyer.
Read next
- Sections 72 to 77: the Registrar's powers
- Sections 16 and 17: rights of the proprietor
- 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.