Industrial Design Assignment and Transfer Guide: Legal Procedures in India

Introduction: Commercializing Design Assets

An industrial design registration protects the novel visual appearance of an article. Just like real estate, registered designs are valuable business properties that can be bought, sold, assigned, or licensed to generate revenue.

However, a simple handshake or email agreement is not enough to transfer ownership. Under the Designs Act 2000, assignments must be executed through specific legal procedures and recorded in the official register to be legally recognized. This guide outlines the transfer workflow.

1. What is an Industrial Design Assignment?

A design assignment is a formal legal transfer of ownership from the creator (assignor) to an acquiring party (assignee).

Unlike a license—which merely grants permission to use the design for a limited period—an assignment transfers all ownership rights, titles, and interests permanently.

2. Statutory Steps for Recording an Assignment

Draft an Assignment Deed: A written contract signed by both parties, detailing the consideration, registered design number, and transfer of rights.

Pay Stamp Duty: The deed must be printed on stamp paper of appropriate value based on the state of execution and transaction size.

File Form 10 with the Design Registry: Submit the deed and application to the Patent Office (Design Wing) within six months of executing the assignment.

Frequently Asked Questions

1. Is registration of the design assignment mandatory?

Yes. Under Section 30 of the Designs Act, an assignment deed is not admissible as evidence of title in court unless it has been formally recorded in the register.

2. What is the timeline to record a design transfer?

The application must be filed within 6 months of execution. An extension of up to 6 additional months can be obtained by paying late fees.

3. Can a pending design application be assigned?

Yes. A pending design application can be assigned. The assignee must request the registry to substitute their name as the applicant.

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Disclaimer: The information provided in this guide is for educational purposes only and does not constitute formal legal or financial advice. Please consult a qualified professional before making business decisions.