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Subject to the provisions of section 25, a person other than the registered proprietor of a layout-design may be registered as a registered user thereof.
(1) Where it is proposed that a person should be registered as a registered user of a layout-design, the registered proprietor and the proposed registered user shall jointly apply in writing to the Registrar in the prescribed manner and every such application shall be accompanied by-
(a) the agreement in writing or a duly authenticated copy thereof, entered into between the registered proprietor and the proposed registered user with respect to the permitted use of the layout-design; and
(b) an affidavit made by the registered proprietor or by some person authorised to the satisfaction of Registrar to act on his behalf-
(i) giving particulars of the relationship, existing or proposed, between the registered proprietor and the proposed registered user, including particulars showing the degree of control by the proprietor over the permitted use which the relationship will confer and whether it is a term of their relationship that the proposed registered user shall be sole registered user or that there shall be any other restriction as to persons for whose registration as registered user application may be made;
(ii) stating the conditions or restrictions, if any, proposed with respect to the place of permitted use or any other matter;
(iii) stating whether the permitted use to be for a period or without limit of period, and, if for a period, the duration thereof; and
(c) such further documents or other evidence as may be required by the Registrar or as may be prescribed.
(2) Where the requirement of sub-section (1) have been complied with, the Registrar shall register the proposed registered user.
(3) The Registrar shall issue notice in the prescribed manner of the registration of a person as a registered user to other registered users of the layout-design, if any.
(4) The Registrar shall, if so requested by the applicant, take steps of securing that information given for the purposes of an application under this section (other than matters entered in the register) is not disclosed to rivals in trade.
(1) Without prejudice to the provisions of section 30, the registration of a person as registered user—
(a) may be cancelled by the Registrar on application in writing in the prescribed manner of the registered proprietor or of the registered user or of any other registered user of the layout-design;
(b) may be cancelled by the Registrar on the application in writing in the prescribed manner of any person on any of the following grounds, namely:-
(i) that the registered user has used the layout-design otherwise than in accordance with the agreement under clause (a) of sub-section (1) of section 25;
(ii) that the proprietor or the registered user misrepresented, or failed to disclose, some fact material to the application for registration which if accurately represented or disclosed would not have justified the registration of the registered user;
(iii) that the circumstances have changed since the date of registration in such a way that at the date of such application for cancellation they would not have justified registration of the registered user;
(iv) that the registration ought not to have been effected having regard to right vested in the applicant by virtue of a contract in the performance of which he is interested;
(c) may be cancelled by the Registrar on his own motion or on the application in writing in the prescribed manner by any person on the ground that any stipulation in the agreement between the registered proprietor and the registered user regarding the topographical dimensions of the layout-design is either not being enforced or is not being complied with;
(d) may be cancelled by the Registrar if the layout-design is no longer registered.
(2) The Registrar shall issue notice in the prescribed manner in respect of every application under this section to the registered proprietor and each registered user (not being the applicant) of the layout-design.
(3) The procedure for cancelling a registration shall be such as may be prescribed:
Provided that before cancelling of registration, the registered proprietor shall be given a reasonable opportunity of being heard.
(1) The Registrar may, at any time during the continuance of the registration of the registered user, by notice in writing, require the registered proprietor to confirm to him within one month that the agreement filed under clause (a) of sub-section (1) of section 25 continues to be in force.
(2) If the registered proprietor fails to furnish the confirmation within one month as required under sub-section (1), the registered user shall cease to be the registered user on the day immediately after the expiry of said period and the Registrar shall notify the same.
Subject to any agreement subsisting between the parties, a registered user may make complaint before the competent criminal court for the infringement in his own name as if he were the registered proprietor.
Nothing in this Act shall confer on a registered user of a layout-design any assignable or transmissible right to the use thereof.
Explanation I. The right of a registered user of a layout-design shall not deem to have been assigned or transmitted within the meaning of this section in the following cases, namely ;-
(a) where the registered user being an individual enters into a partnership with any other person for carrying on the business concerned; but in any such case the firm may use the layout-design, if otherwise in force, only for so long as the registered user is a member of the firm;
(b) where the registered user being a firm subsequently undergoes a change in its constitution; but in any such case the reconstituted firm may use the layout-design, if otherwise in force, only for so long as any partner of the original firm at the time of its registration as registered user, continues to be a partner of the reconstituted firm.
Explanation II.- For the purposes of Explanation I, “firm” has the same meaning as in the Indian Partnership Act, 1932 (9 of 1932).