These include semi-conductor chips fabricated of transistors, resistors, capacitors and their interconnections. These tiny, single-piece layout designs of ICs are creations of the human mind, products resulting out of an enormous amount of time and money. There is a continuing need for the creation of new layout designs that reduce the dimensions of the existing ICs and simultaneously increase their functions. ICs are utilized in a large range of products such as watches, TVs, automobiles, washing machines and sophisticated data processing equipment. The protection of IC refers to the protection of the layout design of the circuit and allows the owner of the design to prevent unauthorized reproduction and distribution of such designs.

With India’s capability in software and hardware designing being recognized globally, in order to be TRIPS compliant, the Semi Conductor Integrated Circuits Layout Design Act, 2000 was enacted to offer protection to original or inherently distinctive layout designs not yet commercially exploited.

Trade Secrets

This is a relatively newer form of IP and ideologically does not fall in the line of IP rights. This is because while all other forms of IP protection require disclosure of information to public in return for protection, this is a special and privileged protection enabling non-disclosure of corporate secrets. In doing so, the economic value of the enterprise holding it is much enhanced. This protection is for information such as formulas, patterns, training programs, methods, techniques, etc., that are vital to the operation of the business. Trade secret is an IP of which a business organization is the lawful owner or custodian of the same, so that the information is not used by others without their permission or consent for commercial exploitation (e.g., the formula for Coco-Cola is the most guarded trade secret in the world). Trade secret is thus both a type of IP and a strategy for protecting a firm’s IP.

In India, there are no statutes dealing with trade secrets. It is common law based and Section 27 of the Indian Contract Act, 1872 provides some remedy by barring disclosure of information acquired as a result of a contract.