Section 18 of SICLD Act : Section 18: Infringement Of Layout-Design

Explanation using Example

Imagine that TechChip Inc., a semiconductor company, has registered a layout-design for an innovative integrated circuit that is crucial for advanced smartphones. This layout-design is protected under The Semiconductor Integrated Circuits Layout-Design Act, 2000.

ElectroParts Corp., another company, without authorization, reproduces TechChip Inc.'s layout-design by incorporating it into their own semiconductor products. They begin selling these products, which infringes upon TechChip Inc.'s rights as per Section 18(1)(a) and (b).

However, a university research team uses TechChip Inc.'s registered layout-design solely for scientific evaluation and teaching, which is permissible under Section 18(2), and does not constitute infringement.

Moreover, if the university team, through their research, creates a new layout-design that is original, they are free to use this new design without infringing on TechChip Inc.'s rights, as per Section 18(3).

If a retailer unknowingly sells products with the infringing chips from ElectroParts Corp., they can continue to sell their existing stock after being notified, but must pay royalties to TechChip Inc. as described in Section 18(5).

Finally, if another individual, through their own research and creativity, independently develops a layout-design identical to TechChip Inc.'s, they can use it without infringing, as stated in Section 18(8).