105 STAT. 2616 PROCLAMATION 6308—JUNE 24, 1991 (1) Each Party shall provide to owners of rights in integrated circuit 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 chip incorporating the layout-design and products including such chips. (2) The conditions set out in paragraph (c)(v) of this Article 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 industry 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 from liability under its law: (A) reproduction of a layout-design for purposes of teaching, analy- sis, 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 layout-design; 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 conunercial exploitation or the date of registration of the design, if required, whichever is earlier. (e) Industrial Designs and Models (i) Each Party shall provide, at a minimum, protection for industrial designs which are new, original, ornamental and non-obvious. Each Party may condition such protection on registration or other formality. The term of protection of such designs shall extend for at least ten years. (ii) Each Party shall provide to the owner of a protected design the right to prevent others from making, copying, using, or selling that industrial design. (iii) Neither Party shall issue compulsory licenses for industrial designs except to remedy adjudicated violations of competition law to which the conditions set out in paragraph (c)(v) of this Article shall apply mutatis mutandis.
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