When discussing India’s ambitions in the semiconductor sector, the focus often lies on infrastructure like fabrication plants and packaging units, supported by production-linked incentives (PLI). However, a crucial aspect for companies involved in chip design is the legal framework that safeguards the layout of integrated circuits. This involves the intricate arrangement of transistors, interconnects, and circuit elements that are essential to a chip’s functionality. The protection of these layouts is governed by the Semiconductor Integrated Circuits Layout-Design Act, 2000 (“SICLD Act”). This Act is managed by the Semiconductor Integrated Circuits Layout-Design Registry (“SICLDR”), which currently functions under the Office of the Controller General of Patents, Designs & Trademarks (CGPDTM), part of the Department for Promotion of Industry and Internal Trade (DPIIT).
Understanding the SICLD Act
The SICLD Act offers protection for the three-dimensional configurations of the layers of semiconductors, metals, and dielectrics forming an integrated circuit, termed as “integrated circuit layout” under the Act. For a layout-design to qualify for registration, it must be original, distinctive, capable of distinction from other layout-designs, and not commercially exploited in India or any convention country before filing. This IP right is distinct from patents or copyright, focusing solely on the layout itself, which is crucial for chip design entities working with various types of circuits.
Underutilization of the SICLD Registry
The CGPDTM’s Annual Report for 2024-25 highlights the underutilization of this registry. As of March 31, 2025, only seven registration certificates have been issued since the registry’s inception. A total of 31 applications have been filed, with 15 undergoing examination, leading to seven registrations and eight rejections or abandonments. In 2024-25 alone, six new applications were subjected to preliminary scrutiny.
Over the past five years, the filing numbers have varied without a clear trend: 5 (2020-21), 2 (2021-22), 8 (2022-23), 2 (2023-24), and 6 (2024-25). In stark contrast, patent filings rose from 58,503 to 1,10,375, and design filings increased from 14,241 to 43,005 during the same period. The SICLD registry has not experienced comparable growth.
Notably, the majority of SICLD registrations belong to just two public sector entities: Bharat Electronics Limited (BEL) and the Indian Space Research Organisation (ISRO). This suggests that private-sector fabless design houses, multinational semiconductor R&D centers in India, and burgeoning chip-design startups have not yet capitalized on this form of protection.
Implications for Indian Companies
India’s semiconductor initiatives, including design incentives and expanding chip design centers, are generating substantial layout-design activities domestically. Currently, many of these designs rely on patents, which do not cover the layout itself, or on confidentiality agreements. The SICLD Act presents a unique opportunity for companies to secure a registrable right over their layout-designs, particularly given the low number of applications and the absence of backlog, making the process relatively quick and cost-effective.
Indian companies, ranging from electronics manufacturers to semiconductor startups and R&D centers, should consider this underexploited opportunity to protect their layout-designs. This is especially pertinent for entities already patenting their circuit innovations. Incorporating SICLD filings into their IP strategies can protect against risks like reverse engineering or layout copying.
Key Considerations
- File Before Commercial Exploitation: The Act mandates that the layout must not have been commercially exploited in India or a convention country before filing. Companies should integrate SICLD filing into their IP strategy at the design-freeze stage.
- Complementary Protection: SICLD registration offers layout protection but does not replace patent protection for circuit functions or fabrication innovations.
- Private Sector Opportunity: With the current concentration of registrations in public sector entities, private companies have a significant opportunity to build their own portfolios of registered layout-designs.
- Integration into Broader Strategy: As India scales up its semiconductor design activities, companies expanding their design centers should incorporate layout-design registration into their broader IP governance frameworks, alongside patents, designs, and trade secrets.
Vikrant Rana, the Managing Partner at S. S. Rana & Co, emphasizes these points. Please note, the views expressed in this article are those of the author(s) and do not necessarily reflect those of Bar & Bench. If you wish to have your Deals, Columns, or Press Releases published on Bar & Bench, please fill out the form available here.
