Assigning, Licensing, or Mortgaging a Design in Pakistan

SECP official website - What We Do page outlining regulatory mandate

A registered industrial design in Pakistan can be sold outright, licensed for someone else to use, or pledged as security for a loan – and each of these is a distinct legal transaction that IPO Pakistan records through a single form: Form D-10. Here’s how assignment, licensing, and mortgaging of a design actually differ, and how to get any of them officially recorded.

Assignment, License, or Mortgage: Not the Same Thing

These three words get used loosely, but under the Registered Designs Ordinance 2000 they describe three different outcomes for a design owner:

  • Assignment – a full transfer of ownership. The assignor gives up all rights in the design, and the assignee becomes the new owner on record.
  • License – permission to use the design without transferring ownership. The original owner (licensor) keeps title to the design but allows another party (licensee) to manufacture, sell, or otherwise exploit it, usually under agreed terms and royalties.
  • Mortgage – using the design right as collateral or security for a debt, while ownership typically stays with the borrower unless there’s a default.

Because each of these changes who can exercise rights over the design (or who has a claim against it), IPO Pakistan requires all three to be recorded on the Design Register using Form D-10 – “Application for recordal of assignment or license or mortgage for one design.”

Why Recording the Transaction Matters

A design registration is only as valuable as the record IPO holds on it. If a design is sold or licensed but the transaction is never recorded, the Design Register still shows the original owner – which means a licensee can’t easily prove their right to use the design if challenged, and a buyer’s ownership isn’t reflected in the one place regulators, courts, or future buyers will check. For mortgages, an unrecorded charge over a design right offers little protection to the lender since there’s no public notice of the claim. Recording each transaction keeps the register accurate and gives every party – owner, licensee, or lender – a documented, enforceable position.

Filing Form D-10: Fee and Process

Form Purpose Fee (PKR)
D-10 Application for recordal of assignment, license, or mortgage for one design 2,000

This fee is per design registration; if the same transaction covers multiple registered designs, a separate D-10 filing (and fee) applies to each one, per IPO Pakistan’s official Design Fee & Forms schedule.

To file, you’ll generally need:

  1. The registered design number(s) being assigned, licensed, or mortgaged.
  2. The underlying document evidencing the transaction – an assignment deed, license agreement, or mortgage/security agreement.
  3. Details of both parties (transferor/licensor/mortgagor and transferee/licensee/mortgagee).
  4. Form D-10 completed and submitted with the prescribed fee at the Design Office.

Once processed, IPO updates the Design Register to reflect the new owner, the licensee’s recorded interest, or the mortgage charge, as applicable.

When You’d Use Each Type

Assignment recordal typically comes up when a design is sold as part of a business sale, when a designer transfers rights to a manufacturer, or during a company restructuring. Licensing recordal is common when a design owner wants a manufacturer or distributor to produce and sell products under the design without giving up ownership. Mortgage recordal is less common but relevant when a business pledges its design portfolio as security for financing.

Pakistan doesn’t currently have a dedicated online service page just for design transactions, but our trademark and IP team handles design assignment, licensing, and mortgage filings as part of our broader IP practice. See our trademark registration services in Pakistan for the full range of brand and design protection work we handle, and if you haven’t registered the design yet, start with our guide on how to register an industrial design in Pakistan.

Frequently Asked Questions

What is Form D-10 used for?

Form D-10 is IPO Pakistan’s application for recordal of an assignment, license, or mortgage affecting a registered industrial design. One form covers all three transaction types, filed against a single design registration.

What’s the difference between assigning and licensing a design?

Assignment transfers full ownership of the design to a new party. Licensing lets someone else use the design while the original owner keeps ownership, typically in exchange for royalties or agreed terms.

How much does it cost to record a design assignment, license, or mortgage?

IPO Pakistan charges Rs. 2,000 per Form D-10 application, per the official Design Fee & Forms schedule, applied per registered design.

Do I need to record a design license if I already have a signed agreement with the licensee?

A signed agreement is binding between the two parties, but recording it with IPO through Form D-10 puts the licensee’s interest on the official Design Register, which protects that interest against third parties and future disputes.