Intellectual Property

In Indonesia, copyright law is set out in the Copyright Act, namely, current, Act No. 28 of 2014. In law, the notion of copyright is “the exclusive rights for the creator or the recipient the right to publish or reproduce the creations or give permission for it by not reducing the restrictions according to the laws and regulations that apply”. Copyright law in Indonesia is a legal framework that encourages entrepreneurs to run their business in Indonesia by providing legal protection on intangible, proprietary assets of an organization or an individual. Copyright protection is a legal tool for demonstrating ownership of specific works. Creators and developers with copyright protection can use it in court to resolve disputes or plagiarism issues by unauthorized parties.

In Indonesia, copyright is a right that is automatically granted upon the creation of an original work and does not require registration. However, establishing ownership of copyright can be complex. As a result, it may be necessary to create documents to demonstrate ownership. Copyright holders can assert ownership by creating a record of the creation process or by publicly announcing their ownership. Copyright grants the creator of a literary, musical, or creative work exclusive rights to that work. The laws governing these works protect the owner against unauthorized modifications or reproductions of the works. Additionally, copyright rules also protect any associated organization by safeguarding its revenue-generating assets arising from any potentially copyrighted work. Please note that these are general guidelines and the specific regulations and procedures may vary. It’s always recommended to consult with a local expert or legal advisor to understand the full implications.

A Trademark in Indonesia is a sign that serves to distinguish one company’s goods or services from those of other companies. While it’s not mandatory for a company to start using a trademark immediately, registering a trademark is highly recommended as it provides significant advantages over others who have not registered their trademarks. Trademarks help to build the image and reputation of a company’s products, leading customers to form attachments to certain brands based on the various desired attributes and features represented in those trademarks.

In Indonesia, trademark protection is governed by Law No. 20 of 2016 concerning Marks and Geographical Indications, referred to as the Trademark Law. This law, which is designed in line with legislation in other developed countries, provides effective and appropriate protection for registered trademarks in Indonesia. It acknowledges two types of trademarks: traditional and non-traditional marks. Some marks cannot be registered due to their lack of inherent distinctiveness. These conditions are met if marks are contrary to the state ideology, laws and regulations, religious morality, ethics, or public order, or are identical to, related to, or simply describe the goods and/or services for which registration is sought. The Trademark Law holds a mark to be any sign capable of being represented graphically in the form of drawings, logos, names, words, letters, numerals, colour arrangements, in two and/or three-dimensional shapes, sounds, holograms, or a combination of two or more of these elements to distinguish goods and/or services produced by a person or legal entity in trading goods and/or services.

In Indonesia, an “industrial design” is defined as the elements of shape, configuration, pattern, or decoration imparted to a product by any industrial method or techniques, which attract and are appraised by the eye in the final article. Any produced or handmade item is classified as an “article,” including a component of such an item or craft unless the component is created and sold independently.

Design protection in Indonesia is confined to a certain article’s visual look. Shape or configuration features governed exclusively by function are not taken into account when determining a design’s registrability. Similarly, matching features cannot contribute to registration.

The protection of Industrial Design in Indonesia is governed by Law No. 31 Year 2000 concerning Industrial Design, Government Regulation No. 1 Year 2005 on the Implementation of Law No. 31 Year 2000 concerning Industrial Design, and Law No. 7 Year 1994 concerning the Ratification of The World Trade Organization Agreement (TRIPs). These laws provide effective and appropriate protection for registered industrial designs in Indonesia. The specific regulations and procedures may vary, so it’s always recommended to consult with a local expert or legal advisor to understand the full implications.

An application for registration includes the following items:

In Indonesia, a patent is a government-granted exclusive right that grants the owner of an invention limited monopoly rights for his new innovation in exchange for full disclosure of his idea to the public. The patent system serves the public by increasing technical knowledge gained by the publication of an invention, while also benefiting the inventor by granting him exclusive rights to his innovation for a certain length of time. An innovation is an idea of an inventor that allows, in practice, the solution to a specific issue in the sphere of technology. It might be a product or a method. However, not all innovations that meet the criteria of an “invention” are patented.

Indonesia is a signatory to several international patent treaties, including the Paris Convention for the Protection of Industrial Property, the Patent Cooperation Treaty (PCT), and the World Trade Organization Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). These treaties help to ensure that patents registered in Indonesia are recognized and protected internationally.

In Indonesia, patent protection is available through either an application to the Directorate General of Intellectual Property for a national patent or an application for international filing under the Patent Cooperation Treaty (PCT). The inventor files a patent application and describes the innovation in detail. The specification provides a description of the invention as well as the claims of the inventor.

Generally, patents should be filed as soon as possible since most nations, including Indonesia, grant patents to the first applicant to apply. As a result, it is in an inventor’s best interest to make an early decision on whether or not to file a patent application in order to prevent another competitor from applying first.

In Indonesia, once a patent is granted, it will be valid for 20 years from the date of filing, subject to the timely payment of annual fees. The rights conferred by an Indonesian patent are limited to Indonesia, meaning the patent owner has the exclusive right to utilize, assign, or license the patent and to enter into contracts within the country. If all fees are paid and the lapse of the patent is due to an accident, error, or other unanticipated event, there may be a possibility for remedy. However, any third parties who have acquired rights to the expired patent cannot be harmed by its remedy between the time the patent expires and the time it is restored.

Everyone, whether local or international, who wants to start a business in Indonesia should take advantage of the numerous intellectual property rights that are available to them. The availability of local intellectual property valuers would also benefit these business owners by saving them money and time spent on engaging international IP valuers.

As a result, such appraisers would be more accessible to company owners. Such owners will profit from enhanced access and exposure within the Indonesian business community.

Indonesia’s government has also established a mechanism to boost the country’s intellectual property ecosystem. This would maintain a healthy flow of supply and demand for intellectual property. This is part of Indonesia’s efforts to develop an efficient and effectively enforced intellectual property (IP) ecosystem to stop rampant piracy and counterfeit products, with a view to attract investments from the United States and European countries. The government’s move is a response to the issuance of the 2021 Priority Watch List (PWL) by the Office of the United States Trade Representative (USTR). Indonesia is on the PWL due to widespread piracy and counterfeiting and, in particular, the lack of enforcement against counterfeit products.

In Indonesia, the development and management of the intellectual property system is overseen by the Directorate General of Intellectual Property (DGIP), which is part of the Ministry of Law and Human Rights. The DGIP enforces Intellectual Property Legislation, including the Trademarks Act, Patents Act, Copyright Act, Industrial Designs Act, Layout Designs of Integrated Circuits Act, and Geographical Indications Act.

The DGIP emphasizes the quality and efficiency of the search and examination process for patents, trademarks, industrial designs, and geographical indications. They have several main missions:

In Indonesia, intellectual property is regulated by various pieces of legislation, each pertaining to a different type of property. Each branch of intellectual property has its own formal requirements, and the procedures for obtaining or registering them can vary. Engaging a specialist in the field can save time and money, thanks to their expertise. A properly filed patent or trademark application will provide maximum protection for your business and commercial projects in Indonesia, helping to avoid potential lawsuits due to inadequate protection of your intellectual property rights. It’s always recommended to consult with a local expert or legal advisor to understand the full implications.