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Briefing Paper

Protection of Industrial Design in India: Issues


and Challenges
March 2013

Introduction
In the era of globalization, it is increasingly evident that
the competitiveness of any enterprise depends on its
ability to innovate its product and service with an objective
to distinguish itself from its competitors in the market. It
is common for manufacturers to capture product market
or create a niche for their product by differentiating, an
otherwise similar product (substitutes in terms of functionality)
on the basis of eye appeal. Even if these products are
not perfect substitutes, the choice of consumers and in turn
market demand; may, to a large extent, depend on the
appearance. In this respect, Industrial Designs (ID) have
become a signicant element in a products value chain.
This allows a high potential and incentive for profitability
for business through investment in ID especially large
producers. For such product segments, design feature is
an essential component and hence is protected to avoid

Contents imitation with an intention of passing off.


ID stand at the junction of artistry and industry and
Introduction 1 are applicable to many different product markets and
nature of protection may vary from cultural artistic market
Protection of ID: International to a consumer-oriented general product market. The
Agreements and India 3 various arguments extended to seek protection for design
The Legal and Policy Framework in India 4 is grounded on the role of designs in maintaining and
promoting competition within a market economy. Govaere
Key Issues and Recommendations 6 (2007) states, Like patent and copyright, design rights
have a reward and incentive function, but the objective is
different. The objective of granting an exclusive right in an
The Briefing Paper has been prepared by Gaurang
industrial design can be defined as providing the possibility
Meher Diljun, M V Shiju, and Nitya Nanda and
of obtaining a return for investment made, and progress
published by TERI under the project, Post-TRIPS IPR
achieved, in the field of aesthetics in order to stimulate
Regime in India supported under the Prosperity
Fund of the Foreign and Commonwealth Office of
the UK.

The Energy and Resources Institute


Protection of Industrial Design in India: Issues and Challenges

overall research and development of the aesthetic features of this reward by others applying it on their goods. Just
of technical or functional product. like patents, trademarks, and copyright, industrial design
ID may be described as consisting of those is an element on Intellectual property and is protected
ornamental aspects or elements of a useful article, under the Indian law (Box 2). The rationale for protection
including its two dimensional or three-dimensional of designs under IPR regime is clarified by the Supreme
features of shape and surface, which make up the Court of India. The Honourable Court, in the case of
appearance of the article. The proprietor of such Bharat Glass Tube Limited v. Gopal Gas Works1 clearly
industrial design will usually, under existing legislations, defines the object and the purpose of the Design Act. The
have the exclusive right to make, sell, and use articles object of the act is to protect the IPR of original design
embodying such design. Industrial designs refer to one of with the aim to reward the innovator for research and
the categories of Intellectual Property Right (IPR) where labour applied to evolve a new and original design. The
the design system focusses on only the aesthetic feature Court further emphasized that the protection given with
of an article derived from its visual appearance (Box 1). respect to designs is primarily to advance industries and
Designs that are linked to technical or functional aspects to keep them in high level of competitive progress. One
are granted patent rights. ID innovation subjective to a interesting feature of ID is that, unlike patents, it does not
specific article, involves investments in terms of time and have high social costs as it does not offer someone the
money in research and development. It was observed status of an absolute monopolist in the relevant market.
that an article may sell better than another which can be The Energy and Resources Institute (TERI) undertook a
attributed to the design aspect of that article (Narayanan, detailed study on the evolution of ID registration in light
2002). Therefore, it is profitable to invest in terms of of post TRIPS amendments in the national legislation. The
time and money in the process of designing. There are key objectives was to capture the trends of ID registration
various examples where popular designs have become a in India and legal, policy, institutional, and compliance
brand and have consolidated their market share making concerns that are limiting the scope and potential of such
innovation in ID a competitive strategy. For designers IP protection especially with respect to Micro, Small, and
alike, intellectual input can provide a valuable income Medium Enterprises (MSMEs) in India. The Indian MSMEs
stream and rights of a good design can be sold. sector is extremely important given the employment
In this light, the object of the design registration is to see potential at low capital cost. They also play a key role in
that the originator of a profitable design is not deprived the development of economy with their effective, efficient,

Box1 The Object of the Act is to Protect Aesthetic Shape and not Function or Functional Shape
In order to get statutory protection under the Designs Act, 2000 the design has to satisfy the definitional requirements of Section 2
(d). As per the definition, design does not include any mode or principle of construction or anything which is in substance a mere
mechanical device. In Escorts Construction Equipment Ltd Vs Action Construction Equipment Pvt Ltd, 1999 PTC 36(Del), the Delhi
High Court had occasion to interpret this part of the definition (as contained in the Designs Act, 1911). This case was concerning the
alleged illegal copying of a design by the respondent of Pick-N-Carry Hydraulic Self Mobile Cranes manufactured by the plaintiff. Though
the case was not directly coming under the Designs Act, the Court examined whether the said design was capable of registration under
the Designs Act. After examining the definition of design under the Act, the Court held that the design in question was incapable of
registration. According to the Court the definition made it amply clear that the primary object of the Act was to protect shape and not
function, or functional shape. The expression design does not include a method or principle of construction or features or shape or
configuration which are dictated solely by the function which the article to be made in that shape or configuration has to perform.
Rejecting the contention of the plaintiff who claimed protection of certain specific parts of the crane, the Court held: The aforesaid
parts of the crane are made in a particular shape so as to interrelate with others mechanically. These parts of the crane are not made
to appeal to the eye but solely to make the crane work or function. Most of the key components or parts, unseen in the crane for which
they were required, had only to pass the test of being able to perform their function. They would be judged by performance and not by
appearance. Consequently, the aforesaid key components or parts are incapable of being registered as designs.

1
2008 (1) CTMR 500 (SC): AIR 2008 SC 2520.

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Protection of Industrial Design in India: Issues and Challenges

BOX 2 Protection of Industrial Designs in India


The entities having unique and distinct pattern, appearance and design can register under Indian Design Act. The registered owner,
under the act, gets the exclusive right to apply the design to any article in the class in which the design is registered. Apart from providing
protection of design element of industrial protection, the law aims to promote innovative activity in the field of industries.
From an intellectual property law perspective an industrial design is concerned only to the ornamental or aesthetic aspects of
a product. As per Indian law protecting industrial design, design constitutes only the features of shape, configuration, pattern,
ornament or composition of lines or colours applied to any article whether in two dimensional or three dimensional or in both forms, by
any industrial process or means, whether manual, mechanical or chemical, separate or combined, which in the finished article appeal
to and are judged solely by the eye; but does not include any mode or principle of construction or anything which is in substance a
mere mechanical device, and does not include any trade mark as defined in clause (v) of sub-section (1) of section 2 of the Trade and
Merchandise Marks Act, 1958 or property mark as defined in section 479 of the Indian Penal Code or any artistic work as defined in
clause (c) of section 2 of the Copyright Act, 1957.
In the context of the act, an article implies any object of manufacture and any substance, artificial or partly natural; and includes any
part of an article capable of being made and sold separately. For the purpose of registration under the Act the design must be new or
original, unpublished previously or in existence in any other country and the article must have its existence independent of the designs
applied to it. So, the design as applied to an article should be integral with the article itself. Trademark and property mark, stamps,
labels, tokens, cards, etc. are excluded from the registration under the act as these cannot be considered as an article. Moreover, any
mode or principle of construction or operation, which is in substance a mere mechanical device and it is required that the design should
be visible on the finished article.
The total term of a registered design is 15 years. (Initially 10 years, can be extended, by another 5 years.) The Design Wing of Patent
Office (Kolkata) is entrusted to administer the provisions under the Design Act, 2000.

flexible, and innovative entrepreneurial spirit. Protection which discusses the concept of industrial property
under ID conventionally is seen as more applicable to large and its protection including general standards of
firms producing for mass production. However, given that protection for industrial designs to be provided by
MSME often is nursery of entrepreneurship, the importance the member states. India is a contracting party to the
of ID registration is equally relevant to this category as it convention. Article 5 quinquies of the Paris Convention
could lead to transition from MSME to something bigger. provided that industrial designs shall be protected in
With respect to products segment that is intractably all contracting countries however, the scope for such
linked with aesthetic features, the protection is even more protection was not defined.
important. In this light, two sectors i.e., Gems and Jewellery P The Berne Convention (1886) for the Protection of
and Leather Shoes were chosen for the study. Literary and Artistic Works, commonly referred to as
the Berne Convention, is an international agreement
Protection of ID: International Agreements and governing copyright. India is a party to the convention
India and recognizes the copyright of works of authors from
Conventionally, designs can seek protection under other members of the Berne Union in the same way as
intellectual property regimes including copyright laws, it recognizes the copyright of its own nationals.
dedicated designs laws, and unfair competition. At the P The Hague Agreement changed the basis for the
international level, international treaties dealing with protection of industrial designs from the so-called
protection under copyright or exclusively ID, deal with copyright approach to the patent approach.
general standards of protection to be provided by the The Hague Agreement consists of several separate
contracting countries. These treaties are aimed at creating treaties. The most important of them are: The London
a framework for international integration of intellectual Act of 1934, the Hague Act of 1960, and the
property rights with a common understanding. These Geneva Act of 1999 (The 1934 Act is frozen as
agreements/treaties and subsequent Indian take on the of January 1, 2010). The Hague Agreement or the
same are briefly highlighted below: Hague System provides a mechanism for registering
P The Paris convention (1883) for the Protection of a ID and thereby getting protection in several
Industrial Property was the first international convention member countries by filing one application with the

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Protection of Industrial Design in India: Issues and Challenges

administrating body known as International Bureau The Legal and Policy Framework in India
of WIPO. India has not signed the Geneva Act of the India has a long history of providing statutory protection for
Hague Agreement and the international protection industrial designs (Table 1). At the time of independence,
for industrial designs in several countries by means The Patents and Designs Act, 1911 passed under the British
of a single application is not available. rule was the relevant statute in the field. In 1970, The Patents
P The Locarno Agreement (1979) establishes the Act, 1970 was adopted. With the adoption of a separate
international classification for industrial designs and legislation for patents, the 1911 Act was substantially
solely an administrative tool and does not bind the amended and renamed as the Designs Act, 1911. In
member states with regard to the nature of protection view of globalization there was a need to adapt with
afforded by a design so classified (Nadar, 2010). the changed technical and commercial development; and
India has not signed the agreement. However, India there was also a need to meet the international obligations
follows the international classification for industrial under the TRIPS Agreement. Under the TRIPS Agreement
designs based on the Locarno Agreement. member countries of the WTO are mandated to enact or
P The Trade Related Aspects of Intellectual Property amend their laws to give minimum level of protection to
Rights Agreement (TRIPS) came into force on the industrial designs. Owing to its obligation under the TRIPS
1st of January 1995, with the establishment of the agreement, India has amended its national legislation to
World Trade Organization (WTO). TRIPS provide provide for these minimal standards (Table 2). The Designs
for minimum norms and standards with respect to Act, 2000 (No. 16 of 2000) was adopted in this backdrop.
different categories of intellectual property rights The Act along with the Designs Rules, 2001 presently govern
including Industrial Designs. The TRIPS Agreement the design law in India. The Act and subsequent rules were
obliges member nations to provide for the protection amended which came to effect from June 2008.
of independently created new or original In 2007, National Design Policy was adopted.
industrial designs. Among other things it aims at promotion of Indian design

Table 1Evolution of Design Law in India


Year Developments
1872 The Patents and Designs Act was passed. The first Indian legislation to protect industrial designs
1888 The Inventions and Designs Act replaced the 1872 Act
1911 The Patents and Designs Act amended and consolidated the law relating to inventions and industrial designs. Based on the UK
Patents and Designs Act of 1907. Patent administration came under the Controller
1912 The Patents and Designs Act, 1911 came into force on 1st January
1930 Amendments to the 1911 Act. Eligibility criteria for design registration changed from new and original design to new or original
design
1970 The Patents Act passed by the Parliament. Provisions relating to Patents deleted from the 1911 Act. The short title of the Act
changed to The Designs Act, 1911
1972 20th April: The Patents Act notified by the Central Government and became operational
2000 The Designs Act passed by the Parliament. The Act of 1911 repealed. Came into force on 25th May
2001 11th May: The Designs Act came into force. Designs Rules 2001 notified by Department of Industrial Policy, Ministry of
Commerce and Industry
2007 8th February: National Design Policy adopted. Among other things aims at promotion of Indian design through a well-defined and
managed regulatory, promotional, and institutional framework. Action plan for implementation of the policy was also adopted
2009 2nd March: The Central Government constituted the India Design Council. The Council is intended to act as the national strategic
body for multi-disciplinary design and to get involved in promotion of design with the ultimate vision to make Indian Industry a
design enabled industry
2008 Designs (Amendments) Rules, 2008 notified
2011 Manual of Designs Practice and Procedure published by the Office of the Controller General of Patents, Designs, and Trade Marks

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Protection of Industrial Design in India: Issues and Challenges

Table 2 Key Amendments in the Designs Act


Section Changes brought by the 2000 Act
Definition of article S. 2(a) Explicitly provides for non-registration of an article which does not have a separate
identity and which is really an integral part of another article.
Definition of design S. 2 (d) Composition of lines or colours added to the definition.
Definition of original S. 2 (g) The definition of original is introduced.
Prior Publication S. 5 (1) Enlarges the scope of prior publication from India to the entire world.

Restoration of lapsed designs S. 12 (1) Restoration of a lapsed design registration due to nonpayment of fee now permissible.
Time period for protection S. 11 Initial period of registration extended from 5 years to 10 years. Maximum period of
registration remains 15 years.
Appeal from the decision of the Controller Ss. 5 (4), The appeal from the decision now lies to the High Court. Under the 1911 Act, the
19 (2); 31 (3); 35 (2); and 36 appeal had to be filed to the Central Government.
Cancellation of a registered design S. 19 Under the 1911 Act, revocation authority vested with the controller only if a petition
was filed within one year and on limited grounds. In all other cases petition to be
filed in the High Court. Under the 2000 Act, petition to be filed before the Controller
in all cases and no time period prescribed. Grounds for challenging the registration
expanded. Appeal lies to the High Court from the decision of the Controller.
Quantum of Compensation S. 22 Quantum of compensation has been substantially increased.
Measures to check anti-competitive practices S. 42 Provisions prohibiting restrictive conditions imposed by the design holder which is
unrelated to the article in respect of which the design registration has been granted
being introduced.
Priority accorded to convention countries S. 44 Provision giving priority for registration of designs registered in convention countries,
i.e., countries which are parties to the Paris Convention and WTO members is
introduced.
Period of secrecy S. 7 The two year period of secrecy in the 1911 Act has been done away. Instead provides
for mandatory publication of the registration of a design and provision for open public
inspection.
Special Provisions in the interest of security of India This new provision empowers the Controller not to disclose designs if such disclosure
S. 46 is prejudicial to the interest of security of India and not to initiate cancellation
proceedings with respect to certain designs on a notification by the Central
Government in this behalf.
Register of designs S. 10 Provides for e. register

System of classification Designs Rules 2001 as amended in 2008 follows the international classification
Schedule III Design Rules system based on Locarno Classification System.
Note: As explained earlier, the 2000 Act was passed in the context of the rapid process of globalization and changes taking place in the technological field, the
2000 Act was a substantial modification on the 1911 Act. The major changes brought out by the Act are explained with the help of the above table.

through a well-defined and managed regulatory, design with the ultimate vision to make Indian Industry
promotional and institutional framework. Action plan a design enabled industry. The India Design Council has
for implementation of the policy was also adopted for constituted three major task forces (working committees)
building a platform for innovation in creative design, focusing on: a) possible ways of promoting design
propagation of Indian designs and innovations on the in different sectors and elds; b) capacity-building
international arena and for global positioning and via benchmarking design educational and training
branding of Indian designs. institutions as well as developing model curriculum; and
Subsequently, in 2009 the Central Government c) policy mechanisms and the provision of incentives
constituted the India Design Council under the Department for promoting research and development, adoption of
of Industrial Policy and Promotion (DIPP). The council is design by industries and providers if design services.
intended to act as the national strategic body for multi- In March 2011, the Council unveiled good design
disciplinary design and to get involved in promotion of marking base on quality assurance with respect to

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Protection of Industrial Design in India: Issues and Challenges

originality, innovation, aesthetic appeal, user-centricity, facility for filing application of design electronically
ergonomic features, safety and eco-friendliness. I-Mark commenced from 1 April, 2009 and has resulted in an
is the Indian equivalent of the Japanese G-Mark, the increase in the registration. The number of registered
highest quality marking for industrial design in Japan, designs in force at the end of 201011 was 42348. The
which leads the world in industrial design innovations. progress can be easily qualified as below par given the
The I-Mark benchmarking initiative is also intended to potential of designs originating from India. Between 2005
be the preparation of a mechanism for recognizing and 2011, the number of designs filed for registration
and encouraging industry achievers in creating a brand increased from 4949 to 7589. An analysis of the legal
image abroad for Indian designs. framework both at the national and international level,
Various activities for comprehensive computerization of analysis of data relating to industrial designs in India,
the Designs Wing of the Patent Office have been initiated and interaction with stakeholders indicate that in order to
with the assistance of National Informatics Centre (NIC). strengthen the existing system of design protection in India,
Digitization of designs applications and preparation of the following issues need to be addressed.
e-Register have already been completed. The examination
of designs applications started electronically from April Low number of ID registrations
2009. The application status for the same is made An analysis of the data from the Indian Patent office
available electronically on the official website. Process for reveal that the number of applications for design
starting e-filing of designs applications is in progress. Front registration is very small compared to trademark and
office software has already been installed to provide the patent applications. It is worthwhile to note here that the
auto- generated application number as soon as a design registration process for designs is comparatively easier
application is filed at any of the offices at Kolkata, Delhi, than patent and trademarks registration in India. The
Chennai, and Mumbai. Awareness programmes were data analysed from 200102 to 201011 show that
conducted in industrial designs in various cities such as design applications constitute only less than 4 per cent of
Ahmedabad Pune, Bangalore, Kolkata, and Delhi by the the total number of applications.
Controller General of Patents, Designs and Trademarks IDs are the cheapest form of IP protection with minimum
and The National Institute of Designs. procedural hassles involved. Despite these advantages ID
rights are largely underrated in the portfolio of most of the
Key Issues and Recommendations IP right holders. It is a fact that the registration of industrial
Total number of applications filed for registration of designs is not abundant in the world (de Carvalho, 2011).
designs during 201011 was 7589, which included Protection of designs are narrower than patents and
5084 application filed from India and remaining 2484 trademarks and thus could be circumvented more easily;
applications originating from abroad. The total number enforcement of patent is easier than designs; short-term
of designs registered were 9206 including applications lifespan of designs; and the perception by small and
received in the previous years. This is nearly 50 per cent medium industries that IPRs are not a potential tool for
increase given the figure of 6025 of previous year. The protecting their innovations are some reasons advanced
for the less enthusiastic response for design protection
10000 (Correa, 2007). There are counter arguments suggesting
9000 that enforcement of design is comparatively less complex
8000
7000
and costly as the infringement is determined by mere visual
6000 impression (de Carvalho, 2011). But compared to 557000
5000 (2008), 587000 (2009), and 669000 (2010) applications
4000
3000 filed in China (WIPO, 2012) the Indian figures of 6557,
2000 6092, and 7589 (IPO, 2012) cuts a sorry figure.
1000
0
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010 - 11 Stakeholder Perceptions: Procedural aspects
Total Filed Total Registered To assess the enforcement of Design Act and to capture
the innovation with respect to designs in India, survey
Figure 1 Trend of applications filed and registered in India
was conducted in five cities in India, namely, Delhi,

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Protection of Industrial Design in India: Issues and Challenges

Per cent are evolving at a rapid pace and innovation are required
100
90 within short duration. Moreover, given that the local and
80 export market that they predominantly cater to leave
70
60 limited scope for detection of infringement. This is similar
50 to Piracy Paradox applicable to fashion industries, where
40
30 piracy leads to more innovation. Similar apprehensions
20 were shown by respondents from shoe manufacturing,
10
however, they believed that the reason lies in avoiding
Examination Registration Publication Enforcement
Gems and Jewellry Leather Shoes
legal hassles. Most of the respondents emphasized on the
need for raising awareness of stakeholders and benefits
Figure 2 Key areas of concern: TERIs Perception Survey (2013) an industry can derive from registering designs. Especially
training with respect to IP protection available in the
Ahmedabad, Kolkata, Jaipur, and Mumbai. Small and export target countries can go a long way in promoting
Medium enterprise represented around 85 per cent of ID registration.
the sample respondents. Number of respondents that had The survey results also point out that the registration
applied for Design registration was higher in leather shoes procedure in India is not very complicated. A vast
(47per cent) compared to jewellery (32 per cent). Almost majority of the respondents agreed that they did not
all the applications were made to Indian office in spite face any difficulty in filing design protection in India.
of majority of the respondents had operations in other A majority of the respondents also agreed that the
countries. Success rate reported for the total application registration process in India is the same or better than
was 64 per cent. Majority of the respondents reported other countries. Stakeholders feel that due to various
that the cost implication for design registration was challenges the number of designs filed for registration is
minimal with 83 per cent in gems and jewellery and 86 not at all encouraging (Table 3). The lack of support by
per cent for leather shoes. Approximately half of the total industrial associations came out very prominently in the
respondents who had registered designs earlier hired a survey. Even though the fee for registration for a design
legal expert for registration. Most of the respondents under the Designs Rules, 2001 is Rs 1000/ only, many of
reported that they didnt find the process burdensome, the respondents thought that it was very high. The fact
however, suggested that the registration process must that in common perception the fee includes the filing fee
be sped up given the high pace of changing demand in charged by the law firms explains this anomaly. These
global market. findings and the comparative data clearly point to the
Respondents from jewellery and leather footwear need for more awareness programmes and a greater role
industry stated that they give limited emphasis to ID by industrial associations in helping the small firms in filing
registration as the market and tastes for their products for registration and other legal assistance.

Table 3 Key issues raised in the survey are categorized in the table below
Publication & Information
Registration Examination Enforcement of the Act General
dissemination
Formalities should be Need to speed Authorities normally Enforceability is weak with Lack of awareness
reduced up the process take 2.5 years to most of the infringements Lack of trust on
Registration time must given the register their name in go unnoticed the enforcement
be reduced to 6 months demand for the their publication Nearly 98 per cent of mechanism
and proper status final product Sometimes there is the product designs are Tendency to avoid legal
updates must be given and market no up gradation of protected under Industrial hassles
from time to time competition database Design Act but then also Informal markets and
Awareness should be There is a need to it gets copied by the small size of these markets
raised with respect speed up this process firms in some products
to option of online No threat of legal segments limits the
registration implications scope of monitoring

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Protection of Industrial Design in India: Issues and Challenges

One of the major challenges considered by the In this regard, capacity-building at the patent
stakeholders is the awareness. Stakeholders perceive office and technology orientation at the examination of
that design protection does not pay off due to weak design applications is essential to streamline registration
enforcement and high legal costs involved in preventing procedures. One would hope that with the modernization
infringements. It is also perceived that the same result drive going on in the Indian Patent Office including the
can be achieved with different shape and configuration examination of design applications electronically and the
amounting to new design protection. appointment of more examiners many of these challenges
Infringement of design is quite frequent in India and could be addressed.
occurs when there is a likelihood of confusion with regard
to similar shape, configuration and surface pattern or Better enforcement of design protection law
appearance of any articles having similar nature and Poor enforcement of design protection law is yet another
purpose. Monitoring is a major challenge and in the common complaint in industry circles. Stakeholders in
presence of any infringement, penalties are not much. selected industry segments have reported that copying
In case of infringement of a design, the proprietor may is rampant and that they are aware of the perpetrators.
bring a suit against the infringer for recovery of damages, However, given limited trust on overburdened judiciary
injunction to stop the use and seizure of infringing products. added to high cost of litigation has posed as a severe
Penalties can range from Rs 20,000 to Rs 50,000. barrier for seeking legal recourse in case of infringement.
Here, small firms have reported that associations should
Better scrutiny of applications at the IP Office play a more important role in monitoring and must support
A constant complaint heard among the practicing legal action and expenditures.
lawyers and their industry clients is that there is non- There is a need to strategize IP protection of
application of mind at the Controllers Office in granting innovative designs to create a better future and compete
design registration. It is a common complaint that many and in order to achieve the same it is important to
common designs used in many industries have been have the broadest possible protection. Also, given the
granted registration. This may be partly due to the lax large number of infringement cases pending, there is a
procedure for registration of designs as opposed to need to devise mechanisms for out of court settlement.
patents and geographical indications under the relevant There should be proper deterrent remedies including
laws. There is neither a procedure for publication before stringent fines.
the grant of registration nor an occasion for pre-grant
opposition under the Designs Act, 2002. This has led to Infringement actions and the cancellation procedure
a complete non-application of mind thereby resulting in The registration of a design under the Designs Act
common designs, same designs and functional designs could make sense only if the infringement of the same
getting registered. is proceeded against. However, there seems to be not
Another complaint commonly reported is the lack of many takers for initiating infringement actions. The
understanding of the laws concerned even by the officials survey conducted showed that only 5 per cent of the
at the patent office. Sometimes, even functional designs respondents were party to an infringement action. Many
get registration under the Designs Act in spite of law being of the respondents answered that they knew about the
very clear about it. While there is an understanding of infringement of their designs, but were not initiating any
the rationale for a liberal procedure for registration in the action. The complex nature of the legal procedure and
case of designs as opposed to patents and geographical the time involved in the entire process are the deterrents
indications, there is a general feeling that greater scrutiny against filing infringement actions. However, some of the
of applications is needed at the IP Office. In many cases it practicing lawyers reported that their clients were not
is reported that the same design is registered more than very keen on the final outcome of the case, but were more
once. The Trademarks Act, 1999 allows the concurrent interested in obtaining a stay against the infringer.
use of the same trademark in certain cases. But in the The cancellation procedure under the Designs Act, 2000
Designs Act, one cannot find similar provisions. This points was also mentioned as a bottleneck. As per the 2000 Act, in
the need for greater scrutiny at the IP Office in granting order to challenge a registered design, application has to
registration under the Designs Act. be submitted to the IPO in Kolkata and an appeal from the

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Protection of Industrial Design in India: Issues and Challenges

decision of the Registrar lies to the High Court at Calcutta. governmental agencies and industrial organizations in
This in a way makes it difficult for people from other parts initiating infringement actions and cancellation procedures.
of the country to challenge the registration of common
designs and functional designs. Even though grounds of Minimizing confusion and mainstreaming procedures
cancellation could be taken as a defense in infringement Unlike Patent Act, Industrial Design Act includes originality
proceedings before the High Court, it would be better but does not exclude traditional knowledge per se.
to allow for a more streamlined cancellation procedure. There are also ambiguities with regard to the terms
All these issues point to the need for greater action by independently created or significantly differ and

BOX 3 Protection under the Design Act, 2000 and the Copyright Act, 1957
As discussed above, conventionally designs have been
considered both under the domain of artistic work and
industrial production. This has led to ambiguity and overlap
with other IPR laws like copyright law, trademark law, utility
model and unfair competition law. This overlap has been
carefully evaded in both Paris and Berne convention which
identified that designs are subject matter for copyright as
well as industrial production (Dutfield and Suthersanen,
2008) . Hence, there will be works that are both protectable
under copyright law as well as under designs law. Indian law
has tried to resolve this by the provision of Section 15(2),
Copyright Act of 1957 which deals with the rights to which a
holder of an original artistic work is entitled.
In Microfibers Inc. vsGirdhar& Co. &Anr, the Delhi High Court
has clarified the interplay between the Designs Act, 2000
and the Copyright Act, 1957 in the light of section 2(d) which
excludes artistic works under the Copyright Act from the
definition of design. The original paintings/artistic works
which may be used to industrially produce the designed
article would continue to fall within the meaning of the artistic
work defined under Section 2(c) of the Copyright Act, 1957
and would be entitled to the full period of copyright protection
as evident from the definition of the design under Section
2(d) of the Designs Act. However, the intention of producing the artistic work is not relevant. It is the exclusive right of the holder of a
Copyright in an original artistic work to reproduce the work in any material form. If the design is registered under the Designs Act, the
Design would lose its copyright protection under the Copyright Act. If it is a design registrable under the Designs Act but has not so been
registered, the Design would continue to enjoy copyright protection under the Act so long as the threshold limit of its application on an
article by an industrial process for more than 50 times is reached. But once that limit is crossed, it would lose its copyright protection
under the Copyright Act. This interpretation would harmonize the Copyright and the Designs Act in accordance with the legislative intent.

Nature of protection of designs under the Copyright Act vis--vis the Designs Act
Designs Copyright
Exclusive rights, i.e., Complete monopoly for large scale production Only protects against copying
(most countries also confer exclusive rights)
Needs to be registered Copyright is accorded automatically, thus there are no formalities of
registration process
Requires originality and novelty The criterion for protection is originality, which is easier to fulfil compared
to novelty
Duration of protection is 10 plus and can be extended further by 5 The duration of protection is much longer (60 years +)
years
Only confined to the product that it is registered upon Not product specific

9
Protection of Industrial Design in India: Issues and Challenges

have not properly been defined in the Designs Act 2000. The percentage is expected to be much lower for overall
There is some confusion in the jurisprudence regarding MSME sector. The primary reason for this is the complete
novelty and originality. Some of the provisions in the law lack of awareness with respect to potential benefits arising
are also very difficult. As for example, design. does for innovation in designs for industrial uses. Similar picture
not include any trade mark as defined in clause (v) of is true for officials at the patent office. It is imperative to
sub-section (1) of section 2 of the Trade and Merchandise raise awareness and build capacity at the level of policy-
Marks Act, 1958 or property mark as defined in section making, implementation institutions, legal fraternity,
479 of the Indian Penal Code or any artistic work as professional institutes, and industrial organizations.
defined in clause (c) of section 2 of the Copyright Act,
1957. Similarly, Section 15(2) of the Copyright Act, 1957,
Industrial design mark
outlines that Copyright in any design, that is capable In sectors like jewellery, often producers are scared of
of being registered under the Designs Act, 1911, but, advertising their products with innovative and attractive
which has not been so registered, shall cease as soon new designs as that might lead to imitation of their designs.
as any article to which the design has been applied has If producers are able to advertise their products that the
been reproduced more than 50 times by an industrial designs concerned are registered and any imitations of
process by the owner of the copyright or, with his license, the designs may attract legal actions, then the chances of
by any other person (Box 3). Moreover, discussions with such imitation can be reduced. This might be facilitated by
officials have indicated that there are limitations faced introducing ID Mark in line with Trade Mark or Copyright.
by the examiners in the form of unavailability of relevant Producers can use such Mark in their advertisement which
information/data for cross verification due to poor will also raise awareness on the issue.
documentation and lack of understanding of the law and
References
its interpretation. Therefore, there is a need to mainstream
Carvalho, Nuno Pires de. (2011).The TRIPS regime of
the definitions and procedures for building confidence
trademarks and designs. Kluwer Law International,
and trust in ID protection.
Netherlands
Signing the Hague Agreement Correa, C. (2007). Trade Related Aspects of Intellectual
The key concern raised by the stakeholders was that at Property Rights (Volume VI of Commentaries on the
present Indian MSMEs are exporting the craftsmanship GATT/WTO Agreements). Oxford University Press.
to others countries without any tangible benefits to the Oxford. UK.
craftsman who is the inventor in many cases of a new Graham Dutfield and Uma Suthersanen. (2008). Global
design. The benefits go to middlemen who are more aware Intellectual Property Law. Edward Elger Publication.
of ID registration in other countries. There is a need to Inge Govaere, Hanns Ullrich. (2007). Intellectual Property,
explore the possibility of signing the Hague Agreement to Public Policy and International Trade. P.I. E Peter Lang.
be able to facilitate international registrations of design Nadar, B P (2010). Evolution of Designs Act in India
in the member countries especially for major export &Protection of Industrial Design underInternational
segments such as gems and jewellery, leather footwear IPR Regime. Retrieved April 16, 2012, from
and textiles. The Hague Agreement Concerning the http://www.scribd.com: http://www.scribd.com/
International Deposit of Industrial Designs, also known as doc/53318556/Evolution-of-Designs-Act-in-
the Hague system, provides a mechanism for registering India-Protection-of-Industrial-Designs-under-
an industrial design in several countries by means of a International-IPR-Regime
single application, filed in one language, with one set of Narayanan, P (2002). Law of Copyright and Industrial
fees. The system is administered by WIPO. Designs.
Venkatraman, S. (2010). Understanding designs act.
Raising awareness and capacity-building Universal Law Publishing.
Most importantly there is lack of awareness about industrial WIPO (2012 ). Intellectual Property Statistics. Available
designs. Even for the most prominent players, in terms of at <http://www.wipo.int/ipstats/en/statistics/
innovation, those were tapped in the questionnaire survey country_profile/countries/in.html>. last accessed on
only less than 40 per cent had applied for registration. 10 January, 2013

10
For more information contact:
Mr Nitya Nanda
Fellow
Resources, Regulation, and Global Security
Centre for Global Agreements, Leg. & Trade
The Energy and Resources Institute (TERI) Tel: 24682100 or 41504900
Darbari Seth Block, Fax: 24682144 or 24682145
IHC Complex, Lodhi Road, Web: www.teriin.org
New Delhi- 110003 E-mail: nitya@teri.res.in

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