Answer By law4u team
Yes, as the owner of a registered design in India, you have the right to sell, transfer, or assign the ownership of your design to another person. Under the Design Act, 2000, the process of transferring or selling a registered design is known as assignment. This allows the new owner to exercise all the rights associated with the design, including the ability to license or protect the design.
Can You Sell or Transfer Your Registered Design?
Assignment of Design:
The owner of a registered design can transfer the ownership of the design to another person through an assignment. The process of assignment allows the design’s rights and benefits to be legally transferred to another party.
The assignment must be in writing and signed by the design owner. The written agreement should clearly state the terms of the transfer, including whether it is exclusive or non-exclusive, and any compensation or royalty arrangements.
Registration of Assignment:
Once the assignment agreement is signed, it is crucial to register the assignment with the Design Office (the Controller General of Patents, Designs, and Trademarks). This step ensures that the new owner of the design is recognized as the legal holder of the design under the Design Act.
Form 16 is used to record the assignment of a registered design, and the assigned design must be registered with the Design Office to update the official records.
Rights Transferred in Assignment:
When the design is assigned, the new owner gets the full rights to the design, including the ability to license, sell, or take legal action against any infringement. The new owner becomes responsible for maintaining the design’s protection and can also renew the design after the original term expires.
The original owner may also negotiate specific terms, such as retaining certain rights or receiving ongoing compensation (e.g., royalty payments).
Exclusive vs. Non-Exclusive Assignment:
The assignment can be either exclusive or non-exclusive:
- Exclusive Assignment: The new owner receives all the rights to the design, and the original owner no longer retains any rights over the design.
- Non-exclusive Assignment: The original owner may still retain the right to use or assign the design to other parties, while the new owner also has the right to use the design.
Example:
Suppose you are a fashion designer who has registered a unique pattern for a clothing design. If you wish to sell the rights to this design to a company, you can do so through an assignment agreement. The company will then hold the exclusive rights to the design, and you may receive compensation or royalties as agreed upon.
After the assignment, the company can use, license, or enforce the rights to the design and may even file for renewal if they wish to extend the design’s protection.
Conclusion:
Yes, you can sell or transfer your registered design to another person through an assignment under the Design Act, 2000. The process involves drafting a written agreement that specifies the terms of the transfer and registering the assignment with the Design Office. Once the assignment is complete, the new owner will have the full legal rights to the design, and you may be entitled to compensation or royalties as agreed.
