Legal Question in Intellectual Property in India

We are manufacturer of Injection Stretch Blow Molding Machines & Molds, these molulds are used for the production of Plastic Bottles of different shapes and sizes.

Most of the times Designs of such bottles are prepared by Company based on the customer�s specifications, customers makes smaller modifications in the design provided by us and finally approves the design.

Generally, such design documents consist Company�s stamp with the declaration that property solely belong to Company and any misuse is strictly prohibited.

In certain cases, after the design approval,( sometimes with permission of the Company and sometimes without the permission of the Company,) customer registers the design on its own name.

Afterword before the final dispatch of moulds customers ask us to engrave the design registration number on the moulds so same will reflect on each bottle.

Further, in some cases our other customers (new Customer) brings the design of the bottles and ask us to prepare the mould for the said design. In such case we do not put our stamp on design documents.

It may happen that shapes design given by the new customer may be having some or other similarities with the designs which have been already registered.

1. In such case if we prepare the mould for new customer, what will be our liability under Design Act 2000?

2. Can Customer, who has registered designs on its own name, which is originally prepared by our company, sue on us for the infringement?

3. If the design is registered without giving any formal intimation, but we have been asked to engrave the number, but another customer brings design which is more or less matching with the registered design, then is there any chances of legal complications. Practically it is difficult for us to check all such earlier design which must have been registered by our customer.

4. What mechanism we should develop at our end to safeguard our interest in such situation.

5. If we obtain any indemnity from the new customer( who brings his own design which may be similar to any other registered design in the market ) , whereby we will get the declaration that in case any claim raise for such design Company will be sufficiently indemnified by the customer.

We are manufacturer of Injection Stretch Blow Molding Machines & Molds, these molulds are used for the production of Plastic Bottles of different shapes and sizes.

Most of the times Designs of such bottles are prepared by Company based on the customer�s specifications, customers makes smaller modifications in the design provided by us and finally approves the design.

Generally, such design documents consist Company�s stamp with the declaration that property solely belong to Company and any infringement / mutualisation is strictly prohibited.

In certain cases, after the design approval, sometimes with permission of the Company and sometimes without the permission of the Company, customer registers the design on its own name.

Afterword before the final dispatch of moulds customers ask us to engrave the design registration number on the moulds so same will reflect on each bottle.

Further, in some cases our other customers (new Customer) brings the design of the bottles and ask us to prepare the mould for the said design. In such case we do not put our stamp

It may happen that shapes design given by the new customer may be having some or other similarities with the designs which have been already registered.

1. In such case if we prepare the mould for new customer, what will be our liability under Design Act 2000?

2. Can Customer, who has registered designs on its own name, which is originally prepared by our company, sue on us for the infringement?

3. If the design is registered without giving any formal intimation, but we have been asked to engrave the number, but another customer brings design which is more or less matching with the registered design, then is there any chances of legal complications. Practically it is difficult for us to check all such earlier design which must have been registered by our customer.

4. What mechanism we should develop at our end to safeguard our interest in such situation.

5. If we obtain any indemnity from the new customer( who brings his own design which may be similar to any other registered design in the market ) , whereby we will get the declaration that in case any claim raise for such design Company will be sufficiently indemnified by the customer.


Asked on 10/01/14, 10:37 pm

1 Answer from Attorneys

I furnish below the answers to your queries:

Further, in some cases our other customers (new Customer) brings the design of the bottles and ask us to prepare the mould for the said design. In such case we do not put our stamp on design documents.

It may happen that shapes design given by the new customer may be having some or other similarities with the designs which have been already registered.

1. In such case if we prepare the mould for new customer, what will be our liability under Design Act 2000?

Yes; you are liable for prosecution for Piracy of Design as per the Indian Designs Act,2000 as a collaborator with your Customer.

2. Can Customer, who has registered designs on its own name, which is originally prepared by our company, sue on us for the infringement?

Ans: How has he registered the Designs which were originally prepared by you. You can raise objection to the Controller of Design for cancellation under section 19 of the Act. In such a case, no infringement action can be taken.

3. If the design is registered without giving any formal intimation, but we have been asked to engrave the number, but another customer brings design which is more or less matching with the registered design, then is there any chances of legal complications. Practically it is difficult for us to check all such earlier design which must have been registered by our customer.

Definitely. But it is your responsibility also to verify as to whether the Design is registered or not by getting into the website of www.ipindia.nic.in/ designs. If you fail, then there is every possibility of litigation. You can get an Assignment in your favour from the Customer who has got registration as an alternative.

4. What mechanism we should develop at our end to safeguard our interest in such situation.

Same answer as above will hold good.

5. If we obtain any indemnity from the new customer( who brings his own design which may be similar to any other registered design in the market ) , whereby we will get the declaration that in case any claim raise for such design Company will be sufficiently indemnified by the customer.

It is not enough as per the Act. You have to get an Assignment of Design in your favour from the Registered person.

If you have got any other queries, please mail [email protected] or call 09994675721

R.P.Ramanathan, IP Attorney and Chief Legal Consultant, Metayage IP Strategy Consulting, Bangalore/ Coimbatore

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Answered on 10/03/14, 12:06 am


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