Entry of Mortgage or License in the Register of Designs

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This article explains the importance and procedure behind the application for registration of ownership post mortgage or license; after execution of assignment agreement.

Introduction

For a Design Application, an applicant is required to document any partial; or complete transfer in title of the design to the Design Office. If this transition is not documented with the Controller the Office; the Court may not acknowledge the same to be evidence of ownership to copyright at a subsequent stage. For this, an application for registration of ownership must mandatorily be documented; within 6 months from the date of the assignment agreement, mortgage, or license. This duration can be extended by a maximum of 6 months.

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ENTRY OF MORTGAGE / LICENSE IN THE REGISTER OF DESIGN

DOCUMENTING LICENSE

Application for Entry of Mortgage or License

A design owner needs to document the license or any other interest of their design. This consensus between the concerning parties must be in writing and reduced to an instrument.


It will record all the conditions regulating the rights and responsibilities of each party. The applicant has 6mos to file this instrument by way of Form 12 under the Design Act, 2000.


This period is calculated from the date on which the instrument is executed; or within an additional period not beyond 6 months in the total as the Controller allows.


The individual, who is authorized by such license; may apply in the required manner to the Controller to record their ownership; along with original or copies of the instrument, authorized by the Notary Public. 


Mortgaging Designs:

When a Design is mortgaged the authorized individual can employ the registered design as assurance for a loan.


The mortgagor has a legitimate right in the registered design until they compensate the loan.

This mortgagee or the mortgagor is required to register the mortgage with the Controller of Designs and the same is recorded in the register of designs.


Licensing designs:

A design owner has the right to give another individual the authority to utilize their registered design by approving a license with such a right.


The conditions of any license are exclusively governed by the licensor and determined between them and the licensee.


The Controller must only be informed of this license by way of Form 12 for documentation purposes.


Fee:

To proceed with an application for entry of Mortgage or License in the Register of Designs through Form 12, the applicant or its representative must pay the prescribed fee depending on their nature and the number of designs.


In respect of one design, where the applicant is a natural person the fee payable is INR 500. However, where the applicant is other than a natural person the fee payable for a small entity is INR 1000 and for others except small entity is INR 2000.


Similarly, for each additional Design, where there are multiple designs, if the applicant is a natural person the fee payable is INR 200 and if the applicant is other than a natural person the fee payable for a small entity is INR 400 and for others except small entity is INR 800.


Conclusion

The ultimate goal of Forms 11, 12, and 13 under the Designs Act is to inform the Controller of the distribution of the rights to a registered design that has subsequently been transferred after registration. While most such rights are transferred by way of assignment the Act also leaves rooms for license agreements and mortgage agreements to be recorded so that the Register for Designs stays updated. This is further helpful as when reviewed, the Controller has full knowledge of the existing rights to a design. 


Our team of advanced patent attorneys assists clients with patent searches, drafting patent applications, and patent (intellectual property) agreements, including licensing and non-disclosure agreements.

Advocate Rahul Dev is a Patent Attorney & International Business Lawyer practicing Technology, Intellectual Property & Corporate Laws. He is reachable at rd (at) patentbusinesslawyer (dot) com & @rdpatentlawyer on Twitter.

Quoted in and contributed to 50+ national & international publications (Bloomberg, FirstPost, SwissInfo, Outlook Money, Yahoo News, Times of India, Economic Times, Business Standard, Quartz, Global Legal Post, International Bar Association, LawAsia, BioSpectrum Asia, Digital News Asia, e27, Leaders Speak, Entrepreneur India, VCCircle, AutoTech).

Regularly invited to speak at international & national platforms (conferences, TV channels, seminars, corporate trainings, government workshops) on technology, patents, business strategy, legal developments, leadership & management.

Working closely with patent attorneys along with international law firms with significant experience with lawyers in Asia Pacific providing services to clients in US and Europe. Flagship services include international patent and trademark filingspatent services in India and global patent consulting services.

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