Recent Amendments in Design Rules, 2000

Under the Design Act, 2000 ("the Act"),  design is defined as "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 trademark 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 ay artistic work as defined in clause (c) of section 2 of the Copyright Act, 1957". 

This Act was introduced for the protection of designs and extends to the whole of India. The design does not include the following:

1. Any artistic work defined under Section 2(c) of the Copyright Act, 1957;

2. Property Mark as defined under Section 479 of the Indian Penal Code, 1860;

3. Construction or trademark defined under Section (1) (v).

The following are the criteria for registration of designs:

1. The design should be new and original;

2. The design should not be published anywhere beforehand;

3. The design should be with respect to an article;

A design that is not new or original and has been published anywhere before by publication in a tangible form or used in any other way before the date of filing will not be registered.

In 2001, the Department of Industrial Policy and Promotion (DIPP) introduces the Design Rules, 2001 ("2001 Rules") to corroborate with the Act. These rules have been amended 3 times: 2008, 2013, and 2014. Recently, the 2001 rules have been amended again in 2021 namely Design (Amendment) Rules, 2021 (Amendment Rules). 

The following are the key features of the 2021 Rules:

1. Definition of Startup- The concept of a startup is introduced. The startup is defined as:

a. an entity in India recognized as a startup under the Startup India initiative;

b. in the case of a foreign entity, an entity fulfilling the criteria for turnover and period of incorporation or registration as per Startup India initiative and submitting a declaration to that effect.

2. Registered mobile number included under 'Address for Service'- Rule 4 of the 2001 Rules talks about address for service in connection with any work related to design. The Amendment Rules include registered mobile numbers as means of address for service.

3. Fees charged for transfer of rights- If an application processed by a startup or natural person or small entity is partly or fully transferred to anyone other than a startup or natural person or small entity, the difference between the fees charged from the natural person or startup or small entity and the fees to be charged from the person other than a natural person or startup or small entity in the same matter will be paid by the new applicant along with the request for such transfer.

4. Fees payable if applicant ceases to be a startup or small entity- If a startup or small entity having filed an application for registration of a design ceases to be a startup or small entity due to the lapse of the time period during which it is recognised by the competent authority or if its turnover crosses the financial limit as notified by the competent authority, no such difference in the fees has to be paid.

5. Compliance with Locarno Classification- The registration of designs should be in compliance with the International Classification of Industrial Designs (Locarno Classification) which is published by the World Intellectual Property Organisation.

These Amendment Rules have broadened the process of registration of designs by including the concept of Startups and charging lower fees from them for such registration. These rules will make sure that applicants are encouraged to file design registrations especially startups and small entities.