LAYOUT-DESIGNS OF INTEGRATED CIRCUITS ACT 2000

to sell, let for hire or otherwise distribute by way of trade;

to offer or expose for sale or hire or other distribution by way of trade; and

to import for the purpose of sale, letting for hire or other distribution by way of trade;

6

“compulsory licence” means the authorization to perform in

Malaysia, without the agreement of the right holder of the protected layout-design, any act referred to in section 9;

“creator”, in relation to a computer-aided design of a layout-design, means the person who made the arrangements for the creation of the layout-design;

“exclusive licence” means a licence in writing, signed by or on behalf of a right holder authorizing the licensee, to the exclusion of all other persons including the person granting the licence, to exercise a right that would otherwise be exercisable exclusively by the right holder;

“integrated circuit” means a product, whether in its final form or in an intermediate form, in which the elements, at least one of which is an active element, and some or all of the interconnections are integrally formed in and on, or in or on, a piece of material and which is intended to perform an electronic function;

“layout-design” means the three-dimensional disposition, however expressed, of the elements of an integrated circuit and some or all of the interconnections of the integrated circuit or such a three-dimensional disposition prepared for an integrated circuit intended for manufacture;

“material form”, in relation to a layout-design, includes any form of storage (whether visible or not) from which the layout-design, or a substantial part of the layout-design, can be reproduced;

“protected layout-design” means a layout-design that is protected under section 5;

“qualifying country” means a country or territory that is a Member to the World Trade Organization Agreement and includes a country or territory designated under section 4;

“qualifying person” means a person who qualifies for the protection of this Act under section 6;

“reproduction” means the act or process of copying the layout-design, directly or indirectly, in a material form;

Layout-Designs of Integrated Circuits 7

“right holder” means the person that is to be regarded as the beneficiary of the protection referred to in section 9;

“unauthorized”, in relation to—

a copy of a protected layout-design, means it is made without the consent of the right holder of the protected layout-design; and

an integrated circuit in which a protected layout-design is incorporated, means such incorporation is done without the consent of the right holder of the protected layout design;

“World Trade Organization Agreement” means the Marrakesh

Agreement Establishing the World Trade Organization done at

Marrakesh on 15 April 1994.

A layout-design shall be taken to have been commercially exploited if the layout-design, a copy of the layout-design or an integrated circuit in which the layout-design is incorporated (whether or not the integrated circuit is contained in another article) is commercially exploited in Malaysia or elsewhere.

A reference to the doing of an act (other than creating) in relation to a layout-design includes a reference to the doing of that act in relation to a substantial part of the layout-design.

A reference to a copy of a layout-design includes a reference to a copy of a substantial part of the layout-design.

A reference to an integrated circuit made in accordance with a layout-design includes a reference to an integrated circuit in which the layout-design is substantially incorporated.

Application

Nothing in this Act shall be deemed to affect any action taken under any other written law relating to the protection of intellectual property rights that is pending on the commencement of this Act and such action shall be continued under the applicable written law until its final disposal.

Nothing in this Act shall be construed as reviving any protection for a layout design that had expired before the commencement of this Act.

This Act shall not apply in relation to any idea, procedure, process, system, method of operation, concept, principle or discovery, regardless of the form in which it is described, explained, illustrated or embodied in a layout-design.

Designation of qualifying countries

For the purpose of subsection (1), “right holder” means a right holder who is a qualifying person.

For the purposes of subsection (1), a layout-design shall be original if—

This Act protects all independently created layout-designs referred to in subsection (1) even if they are identical and, subject to section 8, regardless of when they were created.

A layout-design shall be deemed not to have been created until it has been fixed in a material form or incorporated into an integrated circuit, whichever is earlier.

Persons that qualify for protection

a natural person who—

is a national of, or is domiciled or ordinarily resident in, Malaysia or in a qualifying country; or

a legal entity that—

is incorporated or formed in Malaysia or in a qualifying country; or

the Government; and

the government of a qualifying country.

10

Right holder of layout-design

if the layout-design is not created in pursuance of a commission or in the course of employment, the creator of the layout-design is the right holder;

if the layout-design is created in pursuance of a commission, the person who commissioned the layout-design is the right holder; and

if the layout-design is created by an employee in the course of his employment, the employer is the right holder.

A person can be a right holder even if he shares the right in the layout-design with a person who is not a qualifying person.

If the right in a layout-design is held by more than one person—

If a layout-design is owned by more than one person and such persons include a person who is not a right holder within the meaning of this Act, the protection specified in this Act shall only apply in relation to that part of the layout-design that is created by the right holder and all references in this Act to a protected layout-design shall be construed accordingly.

Duration of protection

Notwithstanding subsection (1), the protection granted to a layout-design under this Act shall lapse fifteen years after the date the layout-design is created.

Layout-Designs of Integrated Circuits 11

the right to reproduce, and to authorize the reproduction of, all or a substantial part of his protected layout-design, whether by incorporation into an integrated circuit or otherwise; and

the right to commercially exploit, and to authorize the commercial exploitation of, his protected layout-design, an integrated circuit in which the protected layout-design is incorporated or an article that contains an integrated circuit in which the protected layout-design is incorporated.

Infringement

if the reproduction is of any part of a protected layout-design that does not comply with the requirement of originality referred to in subsection 5(1);

if the reproduction is done for a private purpose and not for the purpose of commercial exploitation;

if the reproduction is done for the sole purpose of evaluation, analysis, research or teaching;

12

to use the results of any evaluation, analysis or research carried out pursuant to paragraph (c) to create a different layout-design that complies with the requirement of originality referred to in subsection 5(1);

to do any of the acts referred to in section 9 in respect of the different layout-design referred to in paragraph

;

for a right holder of another protected layout-design—

that is identical to the first-mentioned protected layout-design; and

to commercially exploit a copy of the protected layout-design, an integrated circuit in which the protected layout-design is incorporated or an article that contains an integrated circuit in which the protected layout-design is incorporated after the copy, integrated circuit or article has been commercially exploited, whether in Malaysia or elsewhere, by or with the consent of the right holder.

Innocent infringement

a copy of the protected layout-design;

an unauthorized integrated circuit, being an integrated circuit in which the protected layout-design is incorporated;

or

an article that contains an unauthorized integrated circuit referred to in paragraph (b), if, at the time when the person acquired the copy, integrated circuit or article, the person did not know, and could not reasonably be expected to have known, that the copy was unauthorized, that the integrated circuit was unauthorized or that the article contained an unauthorized integrated circuit, as the case may be.

Layout-Designs of Integrated Circuits 13

If a person referred to in subsection (1) becomes aware or could reasonably be expected to have become aware that the copy was unauthorized, that the integrated circuit was unauthorized or that the article contains an unauthorized integrated circuit, as the case may be, subsection (1) shall cease to apply to any subsequent commercial exploitation of the copy, integrated circuit or article unless the person pays to the right holder such remuneration—

If the remuneration referred to in subsection (2) is to be determined by the High Court as provided under paragraph (2)(c), the remuneration payable shall be an adequate remuneration in the circumstances of the case, taking into account such royalties as would be reasonably payable under a freely negotiated licence in respect of such a protected layout-design.

Actions for infringement

Subject to this Act, the relief that the High Court may grant in an action under subsection (1) includes an injunction and the

High Court may impose such terms on the grant of the injunction as the High Court considers fit.

In addition to the injunction granted under subsection (2), the High Court may, subject to this Act, make an order for damages or an account of profits or such other relief as the High Court considers fit.

If, in an action for an infringement of rights in a protected layout-design, it is established that an infringement was committed but that at the time of the infringement the defendant was not aware or had no reasonable grounds for suspecting that the act constituting the infringement was an infringement, the plaintiff

14

shall not be entitled to any damages against the defendant in respect of the infringement but shall be entitled to an account of profits in respect of the infringement, whether any other relief is granted or not.

In any action in which damages may be awarded, the High

Court may, having regard to all of the circumstances of the case including the flagrancy of the infringement and any benefit shown to have accrued to the defendant by reason of the infringement, award additional damages.

Limitation of actions

An action for an account of profits in respect of an infringement of the rights of a right holder in a protected layout-design under this Part shall not be brought after the expiration of six years from the date on which the infringement occurred.

Order for delivery up

the integrated circuit in which a protected layout-design is incorporated is to be commercially exploited; or

the person knows or has reason to believe that the article has been or is to be predominantly used to make integrated circuits in which a protected layout-design is incorporated.

The High Court shall not make an order for delivery up unless it also makes, or it appears to the High Court that there are grounds for making, an order under section 16.

Layout-Designs of Integrated Circuits 15

A person to whom an integrated circuit or an article referred to in subsection (1) is delivered up shall, if an order under section 16 has not been made at the time the order under this section is made, retain the integrated circuit or article pending the making of the order, or a decision not to make the order, under section 16.

Order for disposal

an order for disposal; or

a decision that no order for disposal be made.

An order for disposal may order that the integrated circuit or article delivered up under section 15—

In deciding what order or decision to make under subsection

, the High Court shall have regard to whether the other remedies available to the applicant would be adequate to compensate the applicant and protect the interests of the applicant.

The High Court shall issue directions as to the service of a notice of the application under this section on persons having an interest in the integrated circuit or article delivered up under section 15.

Any person having an interest in the integrated circuit or article delivered up under section 15 shall be entitled to—

An order made under this section shall not take effect until the end of the period within which notice of an appeal may be given or, if before the end of that period notice of appeal is duly given, until the final determination or abandonment of the proceedings on the appeal.

If there is more than one person interested in the integrated circuit or article delivered up under section 15, the High Court may direct that the integrated circuit or article be sold or dealt with in any other manner and the proceeds divided and shall make any other order as it considers fit.

If the High Court decides that no order should be made under this section, the person in whose possession, custody or control the integrated circuit or article was before being delivered up under section 15 shall be entitled to its return and the High

Court may, on the application of that person or any person aggrieved by an order to deliver up made under section 15, make an order awarding compensation for any damage sustained by virtue of the delivery up.

Nothing in this section shall render an advocate and solicitor liable to pay compensation for any damage sustained in respect of an act done by him in his professional capacity on behalf of a client.

Presumption of protection and right holder

the layout-design is a protected layout-design; and

the plaintiff is the right holder of the protected layout-design.

Affidavit evidence

the layout-design is a protected layout-design; and

the plaintiff is a right holder of the protected layout-design.

Layout-Designs of Integrated Circuits 17

An affidavit under subsection (1) may be sworn by the right holder of the protected layout-design or by his authorized agent on his behalf.

A person who acts as an authorized agent of a right holder for the purposes of subsection (1) shall submit such authorization in writing together with his affidavit in accordance with the prescribed rules of court.

An affidavit under subsection (1) shall be prima facie proof of the facts contained in the affidavit.

If the High Court considers, on the application in good faith of a party, that the deponent of an affidavit should be cross-examined with respect to the matters sworn in the affidavit, the affidavit may not be used in the action unless the deponent appears as a witness for such cross-examination or the High Court before which the proceedings are being conducted, in its discretion, permits the affidavit to be used without the deponent’s so appearing.

Without prejudice to the powers of the High Court to award costs, the High Court may award costs—

In awarding costs under subsection (6), the High Court shall have regard to the actual costs incurred by the defendant or plaintiff, as the case may be, as a result of the affidavit sworn by the plaintiff or the application for the appearance of a deponent and the High Court may award costs under subsection (6) exceeding the limit of costs, if any, that the High Court may award.

An assignment or other transmission may be total or partial.

An assignment or other transmission shall not be effective against a third party unless—

If the right in a protected layout-design is held by more than one person, an assignment or licence granted by one right holder shall have effect as if the assignment or licence is also granted by the other right holders, and subject to any agreement between the right holders, fees received by any of the right holders shall be divided equally between all the right holders.

A licence granted in respect of a right in a protected layout-design by a right holder binds each successor in title to the interest in the right of the right holder to the same extent as the licence

Layout-Designs of Integrated Circuits 19

was binding on the right holder, except a purchaser in good faith for value without notice (actual or constructive) of the licence and a person who derives title from the purchaser.

Future rights

If at the time when a right in a protected layout-design comes into existence the person who would be entitled to the right is dead, the right shall devolve as if, immediately before the person’s death, the person had been the right holder.

A licence granted in respect of a future right in a protected layout-design by the prospective right holder binds each of his successors in title to the prospective interest in the right to the same extent as the licence was binding on the right holder, except a purchaser in good faith for value without notice (actual or constructive) of the licence and a person who derives title from the purchaser.

Exclusive licensee

An exclusive licensee shall have, except against the right holder, the same rights of action and shall be entitled to the same remedies in respect of matters occurring after the grant of the exclusive licence as if the licence had been an assignment.

An exclusive licensee’s rights and remedies shall be concurrent with the rights and remedies of the right holder.

20

In an action brought under Part III by the exclusive licensee by virtue of this section, a defence under this Act that would have been available to a defendant in the action if the action had been brought by the right holder shall be available to the defendant as against the exclusive licensee.

Exercise of concurrent rights

Subsection (1) shall not apply to an application by a right holder or an exclusive licensee for interlocutory relief.

Without prejudice to subsections 18(6) and 18(7), a right holder or an exclusive licensee who is added as a defendant in an action under subsection (1) shall not be liable for any costs in the action unless he enters an appearance and takes part in the proceedings.

If an action for the infringement of the rights of a right holder in a protected layout-design is brought and the action relates, wholly or partly, to an infringement in respect of which a right holder and an exclusive licensee have concurrent rights of action—

Subsection (4) shall apply whether or not the right holder and the exclusive licensee are both parties to the action.

A right holder shall, by post or otherwise, notify any exclusive licensee who has concurrent rights of action in respect of an infringement of a right in a protected layout-design before applying for an order for delivery up under section 15, and the High Court may, on the application of the exclusive licensee, make a delivery up order that it considers just having regard to the terms of the licence.

for the defence or internal security of Malaysia; or

in the public interest.

If an exclusive licence is in operation in relation to any rights in a protected layout-design, the provisions of this Part shall apply as if references to the right holder of the rights in the protected layout-design were references to the exclusive licensee.

22

Use for public non-commercial purpose

the act is done for a public non-commercial purpose; and

the act is authorized in writing by the Minister.

An authorization referred to in subsection (1) may be given before or after the act in respect of which it is given has been done.

A right holder aggrieved by a decision of the Minister under subsection (1) may appeal to the High Court.

The decision of the High Court on an appeal under subsection

shall be final.

Scope and nature of use for public non-commercial purpose

shall be both non-exclusive and non-assignable;

shall be limited to the public non-commercial purpose for which the authorization under section 24 is given;

shall be subject to the terms of the authorization given under section 24;

does not permit the sale of the protected layout-design, a copy of the protected layout-design or an integrated circuit in which the protected layout-design is incorporated

(whether or not the integrated circuit is contained in another article) to the public; and

shall be limited to the doing of the acts predominantly in Malaysia.

An act done under section 24 in relation to a protected layout-design shall not be taken into account in calculating the duration of protection of the layout-design referred to in section 8.

Layout-Designs of Integrated Circuits 23

Duty to inform right holder of use for public non-commercial purpose

if the act had been done in situations of national emergency or other circumstances of extreme urgency, as soon as reasonably practicable, inform the right holder that the act has been done; or

in any other case, inform the right holder promptly that the act has been done.

The Government or the person designated in writing by the

Minister, as the case may be, shall give to the right holder such information about the doing of the act as the right holder may require.

Nothing in subsection (1) or (2) shall require the Government or the person designated in writing by the Minister, as the case may be, to inform the right holder or to disclose information to the right holder if doing so would or might reasonably be expected to prejudice the defence or security of Malaysia.

Right holder to be entitled to remuneration for use for public non-commercial purpose

as may be agreed upon between the Government or the person, as the case may be, and the right holder;

as may be determined by a method agreed upon between the Government or the person, as the case may be, and the right holder; or

in default of agreement, as may be determined by the

High Court on the application of either the Government or the person, as the case may be, or the right holder.

24

If the remuneration referred to in subsection (1) is to be determined by the High Court as provided under paragraph (1)(c), the remuneration payable shall be an adequate remuneration in the circumstances of the case, taking into account the economic value of the authorization under section 24.

Compulsory licence

that there is no production of the protected layout-design, any integrated circuit incorporating the protected layout-design or any article containing such an integrated circuit in Malaysia without any legitimate reason;

that there is no production of the protected layout-design, any integrated circuit incorporating the protected layout-design or any article containing such an integrated circuit for sale in Malaysia; or

that there is production of the protected layout-design, integrated circuits incorporating the protected layout-design or articles containing such integrated circuits in Malaysia but the protected layout-design, integrated circuit incorporating the protected layout-design or the article containing such an integrated circuit produced is sold at unreasonably high prices or does not meet the public demand without any legitimate reason.

An application to the High Court under subsection (1) shall only be made after the applicant for the compulsory licence has made efforts to obtain authorization from the right holder on reasonable commercial terms and conditions but such efforts have not been successful within a reasonable period of time.

If the High Court is satisfied that any of the grounds referred to in subsection (1) is established, the High Court may make an order for the grant of a compulsory licence in accordance with the application on such terms as the High Court considers fit.

Layout-Designs of Integrated Circuits 25

The High Court shall specify in the order the remuneration to be paid to the right holder for the compulsory licence as the

High Court considers reasonable.

For the purposes of subsection (4), the remuneration payable shall be an adequate remuneration in the circumstances of the case, taking into account the economic value of the compulsory licence granted under subsection (3).

Scope and nature of compulsory licence

both non-exclusive and non-assignable; and

subject to the payment of the remuneration specified by the High Court in the order made under subsection 28(3)

to the right holder.

An act done under a compulsory licence granted under section 28 in relation to a protected layout-design shall not be taken into account in calculating the duration of protection of the layout-design referred to in section 8.

High Court may terminate compulsory licence

prescribing the form in which notices are to be given under this Act and requiring a person giving such notice, either at the time of giving the notice or at such other time as may be prescribed, or at both times, to furnish evidence and to comply with such other conditions, if any, as may be prescribed;

prescribing the fees and charges payable under this Act and the manner for collecting and disbursing such fees and charges;

providing for such other matters as are contemplated by, or necessary for giving full effect to, the provisions of this Act and for their due administration.

Savings

Nothing in this Act shall affect the rights of the Government or any person deriving title from the Government to sell, use or otherwise deal with articles forfeited under the laws relating to customs matters.

Layout-Designs of Integrated Circuits 27

Act 601

LAYOUT-DESIGN OF INTEGRATED CIRCUITS

LIST OF AMENDMENTS

Amending law

Short title

In force from

– NIL –

28

KUALA LUMPUR

WJW015637 26-10-2020

Act 601

LAYOUT-DESIGN OF INTEGRATED CIRCUITS

LIST OF SECTIONS AMENDED

Section

Amending authority

In force from

– NIL –