Page:United States Statutes at Large Volume 107 Part 3.djvu/760

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107 STAT. 2698 PROCLAMATION 6577-JULY 2, 1993 commercial exploitation of the layout-design in which to apply. A Party which requires deposits of identifying material or other material related to the layout-design shall not require applicants to disclose confidential or proprietary information unless it is essential to allow identification of the layout-design. (ii) Rights Acquired (1) Each Party shall provide to right-holders of lay-out designs of the other Party the exclusive right to do or to authorize the following; (A) to reproduce the layout-design; (B) to incorporate the layout-design in a semiconductor chip; and (C) to import or distribute a semiconductor integrated circuit incorporating the layout-design and products including such integrated circuits. (2) The conditions set out in paragraph (c)(vi) of this paragraph shall apply, mutatis mutandis, to the grant of any compulsory licenses for layout-designs. (3) Neither Party is required to extend protection to layout-designs that are commonplace in the industiy at the time of their creation or to layout-designs that are exclusively dictated by the functions of the circuit to which they apply. (4) Each Party may exempt the following &om liability under its law: (A) reproduction of a layout-design for purposes of teaching, analysis, or evaluation in the course of preparation of a layout-design that is itself original; (B) importation and distribution of semiconductor chips, incorporating a protected layout-design, which were sold by or with the consent of the owner of the layoutdesign; and (C) importation or distribution up to the point of notice of a semiconductor chip incorporating a protected layout-design and products incorporating such chips by a person who establishes that he did not know, and had no reasonable grounds to believe, that the layout-design was protected, provided that, with respect to stock on hand or purchased at the time notice is received, such person may import or distribute only such stock but is liable for a reasonable royalty on the sale of each item after notice is received. (iii) Term of Protection The term of protection for the lay-out design shall extend for at least ten years from the date of first commercial exploitation or the date of registration of the design, if required, whichever is earlier. (e) Acts Contrary to Honest Commercial Practices and the Protection of Trade Secrets (i) In the course of ensuring effective protection against unfair competition as provided for in Article 10 bis of the Paris Convention for the Protection of Industrial Property, each Party shall provide in its domestic law and practice the legal means for nationals and companies to prevent trade secrets from being disclosed to, acquired by, or used by others without the consent of the trade secret owner in a manner contrary to honest commercial practices insofar as such information: (1) is not, as a body or in the precise configuration and assembly of its components, generally known or readily ascertainable; (2) has actual or potential commercial value because it is not generally known or readily ascertainable; and (3) has been subject to reasonable steps under the circumstances to keep it secret. (ii) Neither Party shall limit the duration of protection for trade secrets so long as the conditions in paragraph 2(e)(i) of this letter exist. (iii) Licensing Neither Party shall discourage or impede voluntary licensing of trade secrets by imposing excessive or discriminatory conditions on such licenses or conditions which dilute the value of trade secrets. , .