Government Proposes Protection For Metaverse Designs, Virtual Products Under Designs Act

The Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry has proposed bringing metaverse-based and other virtual designs within the scope of India's design protection law under amendments to the Designs Act, 2000.

The proposal forms part of a concept note issued by the department on Friday and placed in the public domain for stakeholder consultation. DPIIT has invited comments within 30 days

The concept note states that the Designs Act was drafted in a “markedly different industrial and technological environment” when design protection was closely linked to physical products.

It notes that innovation today is largely digital, with many designs existing entirely or partly in virtual form. “Modern designs exist entirely or partly in virtual form,” the note said, referring to graphical user interfaces (GUIs), icons, animated designs, and immersive virtual environments used across sectors.

"Metaverse represents the new era reality in which products, interactions, and consumer experiences increasingly exist in virtual environments. This shift has altered the dynamics of design law," it noted.

While India's design classification system already includes GUIs and other virtual designs, the substantive legal framework continues to be anchored in tangible “articles.” This, the department said, creates uncertainty regarding the protection of such designs.

To address this, DPIIT has proposed expanding the definitions of “design” and “article” to expressly cover non-physical and virtual forms. The proposal seeks to clarify that design protection may subsist regardless of whether a design is embodied in a tangible object or exists in a purely digital or virtual environment. The objective, the department said, is to ensure the law remains “technologically neutral, responsive to innovation, and aligned with evolving global design practices”

Full Grace Period

The concept note also proposes introducing a full 12-month grace period for design registration. At present, Indian law provides only a limited grace period for disclosures made at government-notified exhibitions. DPIIT noted that designs are now commonly disclosed through online launches, investor presentations, pilot sales, and digital marketplaces.

“A much broader grace period provision is needed to accommodate such disclosures,” the note said

Deferment of Publication

Another proposal relates to deferred publication of registered designs. Under the existing framework, designs are published immediately upon registration. The department has proposed allowing applicants to defer publication for up to 30 months from the filing or priority date. The note said early publication can “expose products to copying before market entry.”

It also proposes an “innocent infringer” defence to limit liability for infringement during the deferment period where the infringer had no knowledge of the registration

Statutory Damages

To strengthen enforcement, DPIIT has proposed introducing statutory damages for willful design infringement. Courts may be empowered to award damages up to Rs 50 lakh where proving actual damages is difficult. The concept note states that statutory damages would provide “meaningful compensation” and improve deterrence, with higher penalties proposed for repeat offenders

Design-Copyright Interface

The department has also proposed addressing the design-copyright interface. It has suggested amending the Copyright Act to allow copyright protection for designs that are registrable but remain unregistered, while limiting such protection to 15 years. This, the note said, would prevent attempts to claim “long-term copyright monopolies over the subject matter, which is more appropriately regulated under design law.”

Terms Of Protection

Other proposals include allowing multiple designs to be filed in a single application, introducing divisional applications, revising the term of protection to a 5+5+5-year structure, and introducing a separate chapter to enable international design registrations under the Hague Agreement.

DPIIT has also proposed acceding to the Riyadh Design Law Treaty to simplify procedural requirements and timelines