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1. Subject Matters of Protection
The subject matters of protection are layout-designs of the elements and wires of semiconductor integrated circuits. "Semiconductor integrated circuit" means an intermediate product or a final product that is manufactured to have the function of an electronic circuit, which is simultaneously formed in a state where circuit elements including more than one active element and the wires connecting the elements are inseparable from each other, on the surface of the semiconductor materials or insulating materials or inside the semiconductor materials. "Layout-design" means a plane or cubic design of the circuit elements and wires which connect the elements, which could be used in manufacturing a semiconductor integrated circuit. (Article 2 of the Act on the Layout-Designs of Semiconductor Integrated Circuits. (hereinafter the Act))
2. Scope of Creator (owner of the rights)
The ownership of the rights belongs to the creator of the layout-design of semiconductor integrated circuits (Article 2(3) of the Act), and with respect to a layout-design created by a person employed by a corporation (e.g., government, a corporation, an association or other employer) during his employment, such corporation is deemed to be the creator, unless otherwise provided in a special agreement. (Article 5 of the Act)
3. Protection of Foreigner's Layout-Designs
A layout-design of a foreigner (foreign corporation) shall be protected under treaties to which the Republic of Korea has acceded. (Article 3(1) of the Act). However, if the foreign country does not bestow protection corresponding to this Act for a layout-design by a Korean national, the Commissioner of the Korean Intellectual Property Office may limit the protection in the same manner. (Article 3(2) of the Act)
4. Registration of Establishment of Layout-Design Rights
(1) Filing of an application for registration of establishment
A person who creates a layout-design (or his successor in title) may file an application for registration of establishment of the layout-design right within two years after the date on which the layout-design was first exploited commercially. (Article 19(1) of the Act)
(2) Registration of establishment (formal examination) and public notice
When an application for registration of establishment is filed, the layout-design shall be registered, unless the application falls under any one of the following items:
1) Applicant is not the creator;
2) Layout-design right is jointly owned by two or more persons, and the application is not made in the names of all the joint owners; or
3) Application is made after the lapse of two years after the date on which the layout-design
was first exploited commercially. (Articles 20 and 21 of the Act)
(3) Effects of registration of establishment
The registration of establishment is a requirement for exerting the changes in the rights of the layout-design (transfer or disposition of a layout-design right; establishment, transfer, change, extinguishment or disposition of an exclusive, non-exclusive right or pledge) against a third party. (Article 23 of the Act)
5. Creation and Term of Layout-Design Right
A layout-design right shall come to force upon registration of its establishment of the creative layout-design (Article 6 of the Act), and the term of a layout-design right shall be ten (10) years from the date of registration of the establishment thereof. (Article 7(1) of the Act)
6. Effects of Layout-Design Right and Its Limits
(1) Effects of layout-design right : The owner of a layout-design right shall have the right to exclusively use the layout-design for profit. (Article 8 of the Act)
(2) The limits of right : The effect of a layout-design right shall not extend to any of the following:
1) Reproduction of the layout-design for the purpose of education, research, analysis or evaluation for a non-commercial use by an individual, or vicarious reproduction for the above purposes;
2) A creative layout-design which is made as a result of research, analysis or evaluation;
3) The same creative layout-design which is independently created by a person other than the owner of the layout-design; or
4) Assigning, leasing, displaying or importing of the semiconductor circuits for profit by a person who has received delivery of the semiconductor circuits made lawfully, or by a person who has received delivery of the semiconductor circuits, in good faith without negligence, which had been reproduced illegally from an other person's registered
layout-design. (Article 9(1), (2) and (3) of the Act)
7. License of Registered Layout-Design (Exclusive, non-exclusive and statutory licenses)
It is a right to use the layout-design by a person other than the owner of the layout-design within the scope set forth by the establishment, which includes exclusive and non-exclusive licenses (the arbitration system for establishing a license is separately provided)
(1) Exclusive license : It is a right to exclusively use the layout-design by another person, to the extent provided for in the license contract with the owner of the layout-design. (Article 11 of the Act)
(2) Non-exclusive license : It is a right to use the layout-design by another person, to the extent provided for in the license contract with the owner of the layout-design or with an exclusive licensee, or according to the provisions of this law (arbitration for establishment of a non-exclusive License). (Article 12 of the Act)
8. Mediation of Disputes
(1) Establishment of a mediation committee : A review and mediation committee (hereinafter referred to as the "Committee") shall be established in order to review matters concerning layout-design rights, or an exclusive or non-exclusive licenses, and to mediate the disputes regarding the rights protected pursuant to this Act, and the Committee shall mediate a dispute within six months from the date of the request. (Articles 25 and 27(2) of the Act)
(2) Accomplishment of mediation and the effects thereof : Mediation shall be accomplished by recording in a protocol the matters agreed to by the concerned parties, and the protocol hereof has the same effect as a settlement in a courtroom. (Article 29 of the Act)
9. Remedies against Infringement of Rights
(1) Civil remedies : Civil remedies include the rights to demand enjoinment of infringement, and to demand preventive measures, damages, compensation, and royalties. (Articles 35, 36, 37 and 38 of the Act)
(2) Criminal penalties : A person who infringes a layout-design right or an exclusive license shall be liable to imprisonment with labor for a period not exceeding three(3) years or to a fine not exceeding fifty million(50,000,000) Won, or both. (Article 45(1) of the Act). An offense shall be prosecuted only upon the filing of a complaint. (Article 45(2) of the Act)
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