Rights of Design Holder

Rights of Design Holder

1. Meaning of Design

A design refers to the visual features of shape, configuration, pattern, or ornament applied to a product.

The design must be new or original and capable of being visually perceived.

Design protection encourages creativity in the appearance of manufactured goods.

2. Rights of a Design Holder

Once a design is registered, the holder acquires certain exclusive rights, including:

a) Exclusive Right to Apply the Design

The design holder has the exclusive right to apply the registered design to any article in any class in which the design is registered.

No one else can use, make, sell, or import articles bearing or embodying the design without the holder’s permission.

b) Right to Prevent Infringement

The design holder can take legal action against any person or company that uses, sells, or imports articles copied from or bearing the registered design without consent.

This includes protection against direct copying, imitation, or deceptive use.

c) Right to License

The design holder may license or assign the design rights to others.

Such licensing allows others to use the design legally under agreed terms.

d) Right to Transfer Ownership

The registered design can be assigned or transmitted to another person, thereby transferring all rights.

The design holder also has the right to mortgage or sell the design.

e) Duration of Rights

Rights typically last for a fixed term from the date of registration, after which renewal may be necessary.

The holder enjoys protection only while the registration is in force.

3. Scope of Rights

The rights extend only to the visual appearance of the design.

Functional or technical features of the article are not protected under design rights.

The design holder does not get rights over the article itself, but over the design applied.

4. Remedies Against Infringement

The design holder can seek injunctions to stop infringement.

Claim damages or account of profits made by the infringer.

Seizure and destruction of infringing goods may be ordered by courts.

5. Key Case Law on Rights of Design Holder

Case 1: Apple Inc. v. Samsung Electronics Co.

Facts: Apple sued Samsung alleging infringement of registered designs for smartphone appearance.

Held: The courts acknowledged Apple’s exclusive rights over the registered design.

Principle: Design holders have rights to prevent unauthorized use of distinct visual features of products.

Case 2: Halsbury's Laws - Registered Designs Case

Principle: A registered design confers exclusive rights to prevent unauthorized application or use of the design on articles.

The design holder can sue for infringement and seek damages.

Case 3: Schering Corporation v. Neutron Pharmaceuticals

Facts: Dispute over packaging design of pharmaceutical products.

Held: The court held that the design holder’s rights cover packaging if registered, and unauthorized imitation constitutes infringement.

Principle: Rights of design holders extend to packaging and labeling if registered.

6. Limitations on Rights

Protection does not extend to:

Functional aspects or features.

Designs which are not new or original.

Articles where the design is applied but no registration exists.

Summary Table

Rights of Design HolderExplanationCase Law Example
Exclusive Right to Use DesignSole right to apply the registered designApple Inc. v. Samsung
Right to Prevent Unauthorized UseLegal action against infringementHalsbury's Laws case
Right to License or AssignTransfer or licensing of design rightsSchering Corporation v. Neutron
Duration of ProtectionRights last as long as registration is valid
Remedies Against InfringementInjunctions, damages, seizure of goodsApple Inc. v. Samsung

Conclusion

The rights of a design holder primarily protect the visual originality of a product’s design. The holder enjoys exclusive control over the use, licensing, and enforcement of the design and can prevent unauthorized copying that could harm the design’s commercial value. Courts support these rights to encourage innovation and protect creators’ interests.

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