How Does The Cryogas Vs. Inox Ruling Impact Businesses On Copyright, Design, And Trademark?

If you run a business in manufacturing, engineering, fashion, or consumer goods, you may often ask: Should your product drawings be protected by copyright or design law? The Supreme Court of India, in Cryogas Equipment Pvt. Ltd. & Others v. Inox India Ltd. & Others (2023), has finally settled this confusion.

The judgment harmonizes the Copyright Act, 1957, and the Designs Act, 2000, introducing a “Twin Test” to decide when copyright protection ends, and design law begins. 

TWIN TEST RULE is a history in deciding violations of copyright and the Design Act. The ruling carries huge implications for industrial design, branding, trade dress, and IP strategy in India.

The Real Dispute: Drawings vs Designs

In this case:

• Inox claimed copyright over its LNG tank drawings.
• Cryogas argued that those drawings became designs once it is applied industrially.

The fight was simple but critical: do you get long copyright protection or short-term design protection once you mass-produce?

The Everyday Problem: Where Does Copyright End and Design Begin?

If you have ever asked, “Can my sketches alone protect my product from being copied?”- you are not alone.

Indian law creates a dual protection dilemma:

• Copyright covers artistic works like sketches and diagrams.
• Design law covers visual product features when mass-produced.

There are startups that unknowingly lose protection because they assumed copyright would last forever, only to find out it ended once their design went into mass production.

The Supreme Court’s “Twin Test” Explained 

The Court solved this confusion with a Twin Test, a two-step filter:

1. Capability Test: Can your work qualify as a design (shape, pattern, ornament, configuration) applied industrially?
2. Functionality Test: Is the main purpose functional (industrial use) or aesthetic (visual appeal)?

If the answer is yes to both, your copyright ends after 50 uses unless you register under the Designs Act.

From experience, it is advised that, if you plan to mass-produce, register your design early. Do not wait until competitors copy it.

Key Takeaways for Creators and Businesses

1. Copyright will not give you lifetime protection for industrial products.
2. Even if your product loses copyright, your technical drawings remain protected.
3. Only the visual beauty gets design protection, not the functional parts.
4. Build a layered IP portfolio: Copyright for drawings, design registration for products, and trademark for branding.

What did the Court look at?

The Court built on past cases:

• Microfibres v. Girdhar (2006): Textile patterns lose copyright once mass-applied.
• Bharat Glass v. Gopal Glass (2008): Industrial glass falls under design law.
• Samsonite v. Vijay Sales (1998): Purpose decides protection.
• R.G. Anand v. Delux Films (1978): Idea vs expression, it is still relevant today.

This ruling brings consistency to what used to be a grey zone.

Why This Also Matters for Branding and Trademarks?

Many clients do not realize that a design can evolve into trade dress.

• Example: The shape of the Coca-Cola bottle is now protected as a trademark.
• Lesson: Today’s design can be tomorrow’s brand identity.

Advice: If your design is gaining market recognition, start planning its trademark journey before competitors capitalize on it.

Practical Advice from the Courtroom

Over the years, there have been businesses lose out because they never registered designs. One client’s packaging design was copied by a competitor, and they relied only on copyright. Unfortunately, the competitor mass-produced it, and copyright no longer helped.

If they had registered under the Designs Act, enforcement would have been straightforward. This judgment confirms why that step is the most important.

Final Word

The Supreme Court has made one thing clear:

• Copyright protects your drawings and blueprints.
• Design law protects your products in the market.
• A trademark protects your brand identity long-term.

It is advised not to depend on one law alone. Layer your protections. Register your designs, keep your drawings safe, and transition successful designs into trademarks. That is how you future-proof your innovation.

One can talk to a lawyer from Lead India for any kind of legal support. In India, free legal advice online can be obtained at Lead India. Along with receiving free legal advice online, one can also ask questions to the experts online for free through Lead India.

FAQs

1. What happens if I do not register my design under the Designs Act?

If your design is used more than 50 times in industrial production, copyright protection ends. Without design registration, you may lose the ability to stop others from copying it.

2. Can I protect both my drawings and the product design at the same time?

Yes. The drawings remain protected under copyright, while the product design must be registered separately under the Designs Act for industrial protection.

3. How long does design protection last in India?

The term registered design is protected for 10 years and further extended by 5 years, so you have an exclusive right for a maximum of 15 years.

4. Does this ruling affect software designs, logos, or digital products?

The judgment specifically deals with physical industrial designs, but the principles can guide cases where artistic works (like UI designs or logos) overlap with commercial use.

5. What industries are most affected by the Cryogas v. Inox judgment

These sectors, such as automotive, fashion, furniture, consumer goods, packaging, and industrial machinery, should be observed carefully as they are very much into design, working both on drawings and product designs.