Unlocking the Power of Semiconductor intellectual property (IP) in India

It began with a casual chat with a colleague about the most innovative startups in our ecosystem. He mentioned a promising venture focused on designing semiconductor circuit chips. Curious, I asked if they had considered applying for intellectual property (IP) protection for their circuit design. To my surprise, neither he nor the startup was aware of such provisions. This sparked the idea to share a brief insight into Semiconductor IP.

What is Semiconductor IP?

Semiconductor Intellectual Property refers to the design specifications of the logic, cell, or chip layout in a microprocessor. In India, this specialized IP domain is protected under the Semiconductor Integrated Circuits Layout Design (SICLD) Act, 2000. For a layout design to be eligible for registration under this Act, it must meet certain criteria. The design should be original, distinctive, and capable of distinguishing itself from existing designs. Additionally, it should not have been commercially exploited in India or any convention country before filing for registration.

Historical Milestones in Semiconductor IP

In early years, semiconductor pioneers managed the entire production chain, from design to manufacturing. However, rising demand and increasing technological complexity led to a major industry reorganization by the 1980s. This transformation introduced the fab and fabless model, where companies like Taiwan Semiconductor Manufacturing Company (TSMC) specialized in wafer fabrication, while fabless firms such as Qualcomm focused on chip design and sales. This separation also divided patent ownership into process patents for fabrication companies and product patents for design firms.

The first legal framework for semiconductor chip protection emerged in the US with the Semiconductor Chip Protection Act (SCPA) of 1984, setting global IP protection standards. Following international norms as a member of the TRIPS Agreement, India enacted the Semiconductor Integrated Circuit Layout-Design Act in 2000 to provide similar legal protections. Today, the semiconductor sector has become geopolitically significant, with nations striving to build domestic chip industries to secure supply chains and reduce vulnerabilities.

India’s Semiconductor Design Journey: Signs of Progress and Future Potential

India's efforts to build a strong semiconductor ecosystem are showing positive results. According to the Intellectual Property India Annual report 2022-23, filings for SCILD increased from just one in 2021-22 to 23 in 2022-23. However, so far, two Certificates of Registration have been issued for layout designs: Design No. 1(I)/2013 for an “8-port Micro-controller (BE.80501)” by Bharat Electronics Ltd. (BEL) on January 20, 2015, and Design No. 2(I)/2016 for a “50-60 GHz Sub Harmonic IQ Mixer” by the Indian Space Research Organisation (ISRO) on May 24, 2016.

To support this momentum, the Indian government approved the INR 76,000 Cr Semicon India programme in 2021, offering incentives for silicon fabs, display fabs, sensor fabs, and semiconductor packaging and design. In 2022, the India Semiconductor Mission (ISM) was launched to establish a global semiconductor and display manufacturing hub. The ‘Semicon India Future Design: Design Linked Incentive (DLI) Scheme’ was also introduced, providing financial and infrastructure support for developing Integrated Circuits (ICs), chipsets, SoCs, and other semiconductor-linked designs.

In a landmark move in start of 2024, the Union Cabinet approved India’s first semiconductor fab, to be established by Tata Group in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC). Numerous Indian startups are also fuelling innovation in this sector, to name a few Monk9 Tech, specializing in advanced semiconductor processes; GreenIPCore, developing reliable digital IPs, Aura Semiconductor, designing mixed-signal IC solutions. With growing market demand and supportive government policies, India’s semiconductor industry is set for transformative growth, positioning the country as a significant player in the global semiconductor value chain.

Guide to Registering a Semiconductor Layout Design in India

1. Application Submission:

Applicants must file an application with the Registrar of Semiconductor Integrated Circuits Layout-Design Registry as per the SICLD Act, 2000. The Registrar may accept or reject the application after scrutiny.

2. Prohibited Registrations:

The Act prohibits the registration of certain semiconductor layout designs to ensure only genuine innovations receive protection. Non-original designs, layouts already commercially exploited in India, and designs lacking uniqueness or distinctiveness are not eligible for registration. Additionally, designs that have been commercially used for more than two years before filing are also excluded unless submitted within the specified timeframe.

3. Withdrawal of Acceptance:

The Registrar can withdraw acceptance before registration if the design violates the Act. Applicants are given a fair hearing before any withdrawal.

4. Application Advertisement:

Accepted applications are advertised within 14 days. Corrections or amendments may trigger a re-advertisement.

5. Opposition to Registration:

Anyone can oppose an advertised application within three months. Applicants may respond within two months, failing which the application is abandoned. The Registrar decides based on submissions.

6. Registration & Legal Protections:

Upon successful registration, a certificate is issued. The creator can commercially exploit the design and seek legal remedies against infringements. Registrations are valid for 10 years from the filing date.

7. Infringement & Penalties:

Only registered creators or authorized users can use the design. Infringers may be liable for compensation, determined either mutually or by the Appellate Board. Certain exemptions apply, such as independent creation or consent-based use.

Given this brief understanding of Semiconductor IP and its framework in India, stakeholders can secure their innovations, enhance competitiveness, and contribute to India’s growing prominence in the global semiconductor value chain.

The time to act is now — seize the opportunities ahead!