Draft Act For Layout-Designs Of Integrated Circuits.

(i) "The purpose of this Act is to promote the development of semiconductor integrated circuits by establishing a system for the legal protection of integrated circuit layouts".

(1)(i) "Integrated circuit" means a product, in its final form or an intermediate form, in which the elements, and some or all of the interconnections are integrally formed in and/or on a piece of material and which is intended to perform an electronic function;

(ii) "layout-design" is synonymous with "topography" and means the three dimensional disposition, however expressed, of the elements, atleast one of which is an active elements, and of some or all of the interconnection of and integrated subject, or such a three dimensional disposition prepared for an integrated circuit intended for manufacture;

(iii) "right holder" means the natural person who, or legal entity which, is to be regarded as the beneficiary of the protection referred to in Section 4.

(2) Protection under this law may be obtained for layout-Designs of integrated circuits if and to the extent that they are original within the meaning of Section 3.

(3) Registration may only be applied for if the layout-Design has not yet been commercially exploited, or has been commercially exploited for not more then two years, anywhere in the world.

(1) A layout design shall be considered to be original if it is the result of its creators own intellectual effort and is not commonplace among creators of layout-designs and manufacturers of integrated circuit at the time of its creation.

(2) A layout-design consisting of a combination of elements and interconnections that are commonplace shall be protected only if the combination, taken as a whole, is original within the meaning of sub section (1).

(1) The right to layout-design protection shall belong to the creators of the layout-designs. It may be assigned or transferred by succession where several persons have jointly created a layout-design, the right shall belong to them jointly.

(2) Where the layout-design has been created in execution of commission or an employment contract, the right to layout-design protection shall belong, in the absence of contractual provisions of the contrary, to the person who commissioned the word or to the employee.

(1) Protection under this law shall not depend upon whether or not the integrated circuit which incorporates the protected layout-designs is itself incorporated in an article. Subject to sub section (2) and to Section 15, the protection shall have the effect that the following acts shall be unlawful it performed without the authorization of the right holder:

(i) reproducing, whether by incorporation in an integrated circuit or otherwise, the protected layout-design in its entirety or any part thereof, except the act of reproducing any party that does to comply with the requirement of originality referred to in Section 3;

(ii) importing, selling or otherwise distributing for commercial purpose the protection layout-design, an integrated circuit in which the protected layout-design is incorporated or an article incorporating such an integrated circuit in so far as it continues to contain an unlawfully reproduced layout-design.

(2) The effect of protection of a layout-design under this Law shall not extend to:

(i) reproduction of the protected layout-designs for private purposes or for the sole purpose of evaluation, analysis, research or teaching,

(ii) the incorporation in an integrated circuit of a layout-design created on the basis of such analysis or evaluation and which is itself original in the meaning of Section 3 of the performance of any of the acts referred to in subsection (1) in respect of that layout-design,

(iii) the performance of any of the acts referred to in subsection (1)(ii) where the act is performed in respect of a protected layout-designs, or in respect of an integrated circuit in which such a layout-design is incorporated, that has been put on the market by, or with the consent of, the right holder,

(iv) the performance of any of the acts referred to in subsection (1)(ii) in respect of an integrated circuit incorporating an unlawfully reproduced layout-design or any article incorporating such an integrated circuit where the person performing or ordering such an act did not know, when acquiring the integrated circuit or the article incorporating such an integrated circuit, that it incorporated an unlawfully reproduced layout-design; however, after the time that such person has received sufficient notice that the layout-designs was unlawfully reproduced that person may perform any of the said acts only with respect to the stock on hand or ordered before such time and shall will liable to pay to the right holder a sum equivalent to a reasonable royalty such as would be payable under a freely negotiated license in respect of such a layout-design, or

(v) the performance of any of the acts referred to in subsection (1)(ii) where the act is performed in respect of an identical layout-design which is original and has been created independently by a third party.

(1) Protection of a layout-design under this Law shall commence:

(i) On the date of the first commercial exploitation, anywhere in the world, of the layout-design by, or with the consent of, the right holder, provided an application for protection is filed by the right holder with the Registrar’s Office within the time limit referred to in Section 2(3), or

(ii) on the filing date accorded to the application for the registration of the layout-design filed by the right holder, if the layout-design has not been previously exploited commercially anywhere in the world.

(2) Protection of a layout-design under this Law shall terminate at the end of the tenth calendar year after the date of commencement of protection.

(1) Applications for the registration of layout-designs shall be in writing and shall be filed with Registrar’s Office. A separate application shall be filed for each layout-design.

(2) The application shall:

(i) contain a request for registration of the layout-design in the Register of Layout-Design and a brief and precise designation thereof;

(ii) indicate the name, address, nationality and, if different from the address, the habitual residence of the applicant;

(iii) be accompanied by the Power of Attorney, appointing the representative of the applicant, if any, and by a copy or drawing of the layout-design along with information defining the electronic function which the integrated circuit is intended to perform; however, the application may omit such parts of the copy or drawing that related to the manner of manufacture of the integrated circuit, provided that the parts submitted are sufficient to allow the identification of the layout-design;

(iv) specify the date of first commercial exploitation of the layout-design anywhere in the world or indicate that such exploitation has not commenced; and

(v) provide particulars establishing the right to protection under Section 4.

(3) where the application does not duly comply with the requirements of subsection (2), the Registrar shall notify the applicant of the defects are corrected within the time limit, the Registrar shall accord as the filing date the date of receipt of the application, provided that at the time of receipt, the application contained an express or implicit indication that the registration of a layout-design is requested and indications allowing the identity of the applicant to be established and was accompanied by a copy of drawing of the layout-design. Where the latter requirements were not complied with at the date of receipt of the application but are corrected within the time limit, the date of receipt of the required correction shall be deemed to be the filing date of the application. The Registrar shall confirm the filing date and communicate it to the applicant. If the defects are not corrected within the time limit, the application shall be deemed not to have been filed.

(4) Each application for protection of a layout-design shall be subject to the payment of the prescribed fee. If the fee is not paid, the Registrar’s Office shall notify the applicant that the application will be deemed not to been filed unless payment is made within/two/months from the date of notification. If the application fee is not paid within that time limit, the application shall be deemed not to have been filed.

(1) The Registrar’s Office shall maintain a register (the "Register of Layout-Designs") in which it shall, for each protected layout-design, effect all the recordings provided for in this Law.

(2) Where the application complies with the requirements of Section 7, the Controller shall register the layout-design in the Register of layout-designs without examination of the originality of the layout-design, the applicant’s entitlement to protection or the correctness of the facts stated in the application.

(3) The Register of Layout-Designs shall contain the number, title, filing date and, where indicated in the application under Section 7(2)(iii), the date of first commercial exploitation, anywhere in the world, of the layout-design as well as the name and address of the right holder and other prescribed particulars.

(4) Any person may consult the Register of Layout-Designs and obtain extracts therefrom, subject to the payment of the prescribed fee.

(5) The registration of a layout-design shall be published in the/Industrial Property Govt. Gazette Part V.

(1) Where the essential content of the application has been taken from the layout-design of another person without consent, that other person may, in writing, request the Registrar to transfer the application to him. Where the application has already resulted in a registration, that person may within three years from the publication of the registration, in writing, request the Controller to transfer the registration to him and to rectify the entry in the Register accordingly.

(2) The Registrar shall send forth with a copy of such a request to the right holder, and, within the prescribed period and in the prescribed manner, the right holder may send to the Registrar a counter-statement of the grounds on which he relies.

(3) If the right holder sends a counter-statement, the Registrar shall furnish a copy thereof to the person requesting the transfer and, after hearing the parties, if either or both wish to be heard, and considering the merits of the case, shall decide whether the application or registration should be transferred and, where applicable, whether the Register should be rectified.

(1) Any change in the ownership of a protected layout-design shall be in writing. Once the layout-design has been registered, the change in ownership shall, at the request of any interested party, made to the Controller Office, be recorded and published by the Controller. Such change shall have no effect against third parties until such recording is effected.

(2) Any licence contract concerning a layout-design shall, upon registration of the said layout-design, be submitted tot the Controller Office, which shall keep its contents confidential but shall publish a reference thereto. The licence contract shall have no effect against third parties until such submission has been made.

(1) Any interested person may request that the registration of a layout-design be cancelled on the grounds that:

(i) the layout-design is not protectable under Section 2 and 3,

(ii) the right holder is not entitled to protection under the Section 4 or

(iii) where the layout-design has been commercially exploited, anywhere in the world, before the filing of the application for registration of the layout-design, the said application was not filed within the time limit referred to in Section 4 and 6(1).

(2) Where the ground for cancellation are established with respect only to party of the layout-design, only the corresponding part of the registration shall be cancelled.

(3) A request for cancellation of the registration of the layout-design under subsections (1) and (2) shall be filed with the Controller in writing. The request shall state the grounds on which it is based.

(4) Any canceled layout-designs registration or part thereof, shall be regarded as null and void from the date of the commencement of protection.

(5) The final decision of the Court shall be notified to the Controller who shall record it and publish a reference thereto as soon as possible.

Where an applications ordinary residence or principal place of business is outside Pakistan he shall be represented by a legal practitioner resident and practicing in Pakistan.

(1) Infringement shall consist of the performance of any act which is unlawful under section6.

(2) On the request of the right holder, or of his licence if the latter has requested the right holder to institute court proceedings for a specific relief and the right holder has refused or failed to do so within a reasonable period, the court may grant an injunction to prevent infringement or a imminent infringement award damages and grant any other remedy provided for in the general law.

(3) An action under subsection (2) may be initiated only after an application for registration of the layout-design has been filed with the Controller Office.

Any person who, without authorization, knowingly performs any act which is unlawful under section 5 shall be guilty of an offense, punishable by a fine or by imprisonment or by both. The Court may also order the seizure, forfeiture and destruction of the layout-designs, integrated circuits or articles concerned and of any materials or implements the predominant use of which has been in the commission of the offense.

(1) Where

(i) the public interest, in particular, national security, nutrition, health or the development of other vital sectors of the national economy requires the exploitation of a protected layout-design for public non-commercial use; or

(ii) a judicial or administrative body has determined that the manner of exploitation of a protected layout-design, by the right holder or his licensee, is anti-competitive, and the Minister is satisfied that exploitation of the layout-design in accordance with this Section would remedy such practice,

(2) Upon request of the right holder or of the beneficiary of the authorization, the Minster may, after hearing the parties, if either or both wish to be heard, vary the terms of the decision authorizing the exploitation of the layout-design to the extent that changed circumstances justify such variation.

(3)(a) Upon the request of the right holder, the Minister shall terminate the non-voluntary license if he is satisfied that the circumstance which led to his decision have ceased to exist and are unlikely to recur or that the beneficiary of the authorization has failed to comply with the terms of the authorization.

(b) Notwithstanding paragraph(a), the Minister shall not terminate an authorization if he is satisfied that the adequate protection of the legitimate interests of the beneficiary of the authorization justifies the maintenance of the authorization.

(4) Where a third person has been designated by the Minister, the authorization may only be transferred with the enterprise or business of the beneficiary of the authorization or with the part of the enterprise or business within which the layout-design is being exploited.

(5) A request for the Minister’s authorization shall be accompanied by evidence that the right holder has received, from the person seeking the authorization, a request for contractual licence, but that person has been unable to obtain such a license on reasonable commercial terms and conditions and within a reasonable time.

(6) Decisions of the Minister under this Section may be the subject of an appeal before the High Court.

(1) The Controller shall give any party to any proceeding before him an opportunity of being heard before exercising adversely to that party any discretionary power vested in him by this Law.

(2) If the Controller is satisfied that the circumstances justify it, he may upon receiving a written request therefor, extend the time for doing any act or taking any proceeding under this Law, upon notice to the parties concerned and upon such terms as he may direct. The extension may be granted though the time for doing the act or taking the proceeding has expired. The time for filing an application referred to in Section 2(3) may not be extended.

(1) The/High/Court shall have jurisdiction in cases of dispute relating to the application of this Law and in matters which under this Law are to be referred to the court.

(2) Any decision taken the Controller under this Law, in particular the registration of a layout-design, may be the subject of an appeal by any interested party before the/High/Court and such appeal shall be filed within/two/months of the date of the decision.

The provisions of any international treaties in respect of industrial property to which the Pakistan is a party shall apply to matters dealt with by this Law and, in case of conflict with provisions of this Law, shall prevail over the latter.

(1) The Minister may issue Regulations prescribing details for the implementation of this Law. The Regulations may, in particular, provide for the payment of fees in connection with applications for the registration of layout-designs of integrated circuit and matters related thereto.

(2) The Controller may issue administrative Instructions relating to the procedure under this Law and the Regulations as well as to the other functions of his office.

(1) This Law may be cited as the Layout Design of Integrated circuits Law and shall come into force on …………….

(2) Protection under this law shall not be available for layout-designs which have been commercially exploited, anywhere in the world, for more than two years prior to the entry into force of this Law.

(1) The holder of a circuit layout right may surrender his or her circuit layout right only with the approval of the sole use grantee, or ordinary use grantee and pledgee, if any.

(2) A sole use grantee may surrender his or her sole use right only with the approval of the ordinary use grantee and pledgee, if any.

(3) An ordinary use grantee may surrender his or her ordinary use right only with the approval of the pledgee, if any.

(1) A person who is or was an officer or a staff member of the Patent Office shall not leak any secret which he or she has obtained in connection with the registration.

(2) The officer or staff member of the designated registration office engaged in the registration business shall be deemed to be an officer engaged in public service under law.

(1) A person requiring registration as a condition of protection the term of protection of layout-designs shall not end before the expiration of the period of ten years counted from the date of filing and application for registration.

(2) Notwithstanding sub-section (1) a person may provide that protection shall lapse 15 years after the creation of the layout-design.

Any of the following persons shall pay to the State (or in cases where the registration of layout-design performs the registration business to such registration office, a fee determined by cabinet order in light of the actual expenses:

(1) persons seeking to obtain registration for establishment;

(2) persons seeking to obtain the registration referred to in section 10 sub-section (1) or (2);

(3) persons demanding delivery of a copy or an extract organ extract of the Circuit layout ledger, or delivery of documents describing matters contained in the portion of the Circuit Layout ledger which has been arranged sub-section (2) of the preceding section;

(4) persons demanding perusal or copying of the Circuit Layout Ledger, or drawings and other materials attached to the application form under the provisions of sub-section (2) of the preceding section;

(5) The provisions of the preceding sub-section (limited to the portions referring to the persons specified in clauses (1) & (2) shall not apply in cases where the Controller of Patents & Designs effects registration for establishment, or the registration referred to in Section 21 (1) & 21 (2);

(6) The provisions of sub-section (1) shall not apply in cases where the fees is to be paid by the State;

(7) Registration fees paid to the Patent Office under the provisions of sub-section (1) shall be the income of the Patent Office.

The content of this article is intended to provide general information on the subject matter. It is therefore not a substitute for specialist advice.