Chapter VIII - Evidence, Etc.
Section 42
Section 42: Restrictive conditions in design contracts
Section 42 invalidates specified restrictive conditions in transactions involving registered-design articles. It targets the described restrictions concerning other articles and contains a particular piracy defence, exceptions and a rule for older contracts.
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Need advice on Section 42?
This article is for general information. Refer to the Designs Act, 2000 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) It shall not be lawful to insert—
(i) in any contract for or in relation to the sale or lease of an article in respect of which a design is registered; or
(ii) in a licence to manufacture or use an article in respect of which a design is registered; or
(iii) in a licence to package the article in respect of which a design is registered, condition the effect of which may be—
(a) to require the purchaser, lessee, or licensee to acquire from the vendor, lessor, or licensor or his nominees, or to prohibit him from acquiring or to restrict in any manner or to any extent his right to acquire from any person or to prohibit him from acquiring except from the vendor, lessor, or licensor or his nominees any article other than the article in respect of which a design is registered; or
(b) to prohibit the purchaser, lessee or licensee from using or to restrict in any manner or to any extent the right of the purchaser, lessee or licensee, to use an article other than the article in respect of which a design is registered which is not supplied by the vendor, lessor or licensor or his nominee, and any such condition shall be void.
(2) A condition of the nature referred to in clause (a) or clause (b) of sub-section (1) shall not cease to be a condition falling within that sub-section merely by reason of the fact that the agreement containing it has been entered into separately, whether before or after the contract relating to the sale, lease or licence of the article in respect of which a design is registered.
(3) In proceeding against any person for any act in contravention of section 22, it shall be a defence to prove that at the time of such contravention there was in force a contract relating to the registered design and containing a condition declared unlawful by this section:
Provided that this sub-section shall not apply if the plaintiff is not a party to the contract and proves to the satisfaction of the court that the restrictive condition was inserted in the contract without his knowledge and consent, express or implied.
(4) Nothing in this section shall—
(a) affect a condition in a contract by which a person is prohibited from selling goods other than those of particular person;
(b) validate a contract which, but for this section, would be invalid;
(c) affect a condition in a contract for the lease of, or licence to use, an article in respect of which a design is registered, by which the lessor or licensor reserves to himself or his nominee the right to supply such new parts of the article, in respect of which a design is registered, as may be required or to put or keep it in repair.
(5) The provision of this section shall also apply to contracts made before the commencement of this Act if, and in so far as, any restrictive conditions declared unlawful by this section continue in force after the expiration of one year from such commencement.
Rule and business relevance
The section covers the listed sale, lease, manufacturing, use and packaging arrangements. Specified tying or use restrictions concerning other articles are void, even if placed in a separate agreement. In Section 22 proceedings, an operative contract with an unlawful condition can provide the stated defence, subject to the non-party plaintiff exception.
Limits and related provisions
Not every exclusive commercial condition is automatically void under this section. Subsection (4) preserves the described restrictions on selling other goods and specified parts/repair reservations, and does not validate a contract otherwise invalid. The defence requires its actual predicates; unrelated competition or contract law also needs separate assessment.
Hypothetical business example
Hypothetical: a design licence requires the licensee to buy an unrelated article only from the licensor. The parties examine whether the clause falls within subsection (1), including the exceptions, instead of trying to avoid scrutiny by moving it into a separate side agreement.
Practical decision flow
Read the design transaction and all linked agreements for acquisition or use restrictions on other articles.
Match each clause to the statutory prohibition and subsection (4) exceptions, and check other applicable law.
For a Section 22 defence, establish the contract's operation at the alleged contravention and address the plaintiff's role, knowledge and consent.
Practical checklist
Do
- Read the design transaction and all linked agreements for acquisition or use restrictions on other articles.
- Match each clause to the statutory prohibition and subsection (4) exceptions, and check other applicable law.
- For a Section 22 defence, establish the contract's operation at the alleged contravention and address the plaintiff's role, knowledge and consent.
Avoid
- Not every exclusive commercial condition is automatically void under this section. Subsection (4) preserves the described restrictions on selling other goods and specified parts/repair reservations, and does not validate a contract otherwise invalid. The defence requires its actual predicates; unrelated competition or contract law also needs separate assessment.
Glossary
- Restrictive condition
- A contractual condition with an effect described as unlawful by this section.
- Separate agreement
- A distinct contract which does not by itself remove a covered restriction from subsection (1).
Frequently asked questions
Can a prohibited condition be saved by putting it in a side agreement?
No. Subsection (2) expressly addresses separate agreements made before or after the main transaction.
Does every exclusivity clause become void?
No. Read the precise prohibitions and subsection (4) qualifications, and assess other relevant laws.
Is the piracy defence available regardless of who sues?
No. The proviso to subsection (3) addresses a plaintiff who is not a contract party and proves the stated lack of knowledge and consent.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026