Intellectual Property Services

INTELLECTUAL PROPERTY SERVICE

Written by Willyanto Sinaga on 01/08/2023
The author’s views are entirely their own and may not always reflect the views of Putranto Alliance.

Intellectual Property Rights (IPR) are rights granted over copyrighted works, inventions, industrial designs, trademarks, and trade secrets resulting from a person’s or a legal entity’s creative and intellectual activities. In Indonesia, IPRs are regulated by various laws that protect these rights and provide legal protection to their owners.

What is Intellectual Property?

Intellectual Property Rights (IPR) are rights granted to the results of creative and intellectual activities of a person or legal entity. IPR includes various rights that protect works Copyright, patents, trademarks, industrial designs, trade secrets, geographical indications, integrated circuit layouts, and plant varieties resulting from thought, creativity, and innovation.

The primary purpose of IPR is to provide legal protection to creators, inventors, or owners of the works or innovations they produce. This encourages innovation, creativity, and investment in various economic sectors and incentivizes creators and inventors to continue producing works or innovations that benefit society.

TYPES OF INTELLECTUAL PROPERTY

In Indonesia, several types of Intellectual Property Rights (IPR) are recognized and protected by law.

Some types of intellectual property rights in Indonesia are:

Copyright.
Copyright protects original works produced in the form of writings, music, art, films, computer programs, and other creative works. The creator has the exclusive right to reproduce, distribute, and utilize these works;

Patents.
Patents protect new inventions or technological innovations with novelty, inventive activity, and industrial applicability criteria. The patent holder has exclusive rights to the invention for a certain period;

Trademark.
Trademark rights protect the name, logo, or symbol used to identify a particular product or service of a company. Trademarks allow the holder to prohibit others from using the mark without permission;

Industrial Design.
An industrial design protects the aesthetic aspects or layout of a product that is unique and distinct from similar products. This protection prevents others from producing, selling, or using the design without authorization;

Trade Secret.
A trade secret is information or data not known to the public and has economic value due to its secrecy. The holder of a trade secret has the right to protect and maintain the confidentiality of such information;

Geographical Indication.
A geographical indication is a mark or name used to identify a product from a particular region with qualities, reputation, or characteristics native to that region;

Integrated Circuit Layout Design.
Protects registered integrated circuit designs or layouts from being duplicated or distributed without authorization;

Plant Varieties.
protection of plant varieties is a special protection for the owner of the right to use the variety they have bred.

IPR is an important instrument to encourage innovation, creativity, and investment in various sectors in Indonesia, and the government regulates its protection through applicable laws and regulations.

IMPORTANCE OF IPR RECORDATION AND REGISTRATION

Intellectual Property Rights (IPR) must be recorded and registered as these steps provide benefits and more vital protection for the rights holder.

Reasons why intellectual property owners are obliged to register or record their intellectual property:

Proof of Ownership.
Recording or registering IPR creates clear written evidence of ownership of intellectual property rights. This is useful to avoid legal disputes and makes it easier for right holders to prove they are the creator or rightful owner of a particular work or innovation;

Increased Legal Protection.
By recording and registering IPR, you can enforce the rights more effectively in infringement cases;

Increased Commercial Value.
IPRs registered tend to have a higher commercial value. For example, A registered trademark or patent becomes a valuable asset to the company and can increase customer confidence in the product or service;

Protection from Misuse.
Recording or registering IPR can prevent misuse and theft related to protected works or innovationso. Legally recognized exclusive rights allow right holders to take legal action against parties who attempt to use or benefit from the protected works or innovations without permission;

Encouraging Innovation and Creativity.
IPR protection encourages innovation and creativity by incentivizing creators or inventors. They will be motivated to create new and better things if they have assurance for their works or innovations;

Serving as an Object of Guarantee.
IPR as a guaranteed object has been regulated under PP 24 Year 2022 in article 10, which states: Intellectual property that can be used as an object of debt collateral is in the form of debt collateral in the form of:

Intellectual property that has been recorded or registered in the ministry that organizes government affairs in the field of law; and government affairs in the field of law; and
Intellectual property managed alone and/or transferred its rights to other parties.

Recording or registering IPR is essential to protect the rights of creators, innovators, and brand owners. It also contributes to economic growth and technological development by encouraging innovation and creativity in various fields.

RECORDATION AND REGISTRATION REQUIREMENT

In practice in Indonesia, several types of IPR must be registered, and some are only enough to be recorded at the Ministry of Law and Human Rights through the DJKI.

IPR that must be registered:

Patents.
Based on Law No. 13 Year 2016 concerning Patents. Patents must be registered to obtain exclusive rights to inventions with novelty and inventive activity criteria and can be applied industrially. Once registered, a patent is valid for 20 years, and simple patents are valid for 10 years;

Trademarks.
Based on Law Number 20 Year 2016 concerning Trademarks and Geographical Indications. Trademark registration is necessary to provide solid legal protection for the mark and prevent other parties' unauthorized use. Once registered, the term for a trademark is 10 years and can be extended;

Geographical Indications.
Based on Law No. 20 Year 2016 concerning Trademarks and Geographical Indications. Registration of geographical indications is necessary to provide solid legal protection for geographical names identifying products from a particular region. Geographical indications are valid as long as the reputation, quality, and characteristics that are the basis for granting geographical indication protection are maintained;

Integrated Circuit Layout Design.
Based on Law No. 32 Year 2000 concerning integrated circuit layout design. Registration of integrated circuit layout is necessary to protect integrated circuit designs or layouts from being duplicated or distributed without authorization, and the term for an integrated circuit layout design once registered is 10 years and can be extended.

IPR that is sufficiently recorded:

Copyright.
Based on Law No. 13 Year 2016 concerning Patents. Patents must be registered to obtain exclusive rights to inventions with novelty and inventive activity criteria and can be applied industrially. Once registered, a patent is valid for 20 years, and simple patents are valid for 10 years;

Industrial design.
Based on Law No. 31 Year 2000 concerning Industrial Design, an industrial design can be granted automatic protection without registration. However, registering the design at the DG IP can help prove ownership. The validity period is 10 years;

IPR that can be registered or recorded:

Plant Variety Protection.
Based on Law No. 29 Year 2000 concerning Plant Variety Protection. Plant variety protection can be regulated differently in each country. In Indonesia, plant varieties can be chosen to be registered for exclusive rights

It is essential always to pay attention to the latest legal requirements and consult an intellectual property law expert to understand the registration or recording of intellectual property rights you have.

MECHANISM RECORDED AND REGISTERED IPR

If you want to register or record your intellectual property, let’s look at the existing mechanisms, we take an example of the most common intellectual property to be registered in Indonesia, such as trademarks and patents or recording of copyrights.

Trademark
If the required documents have been completed, the application can be submitted with the following mechanism:

Application to DJKI;
Formality checking for 15 days;
If the file is complete, it will be announced 2 months from the date of the formality checking;
Substantive checking for 150 days;
If approved will be directly registered and issued a certificate on the trademark;
If not approved, it can be done to file a response, trademark appeal efforts, and finally, efforts to the court. If the 3 efforts fail, the trademark can not be registered because it has been considered a permanent refusal.

Patent
If the required documents have been completed, the application can be submitted with the following mechanism:

Application to DJKI;
Administrative checking for 14 days;
If the file is complete, it will be announced 18 months from the date of the formality examination, and for simple patents 3 months;
Entering waiting period to wait for the announcement for 6 months and a simple patent for 2 months;
Substantive checking for 30 months and a simple patent for 12 months;
If not approved, will be directly registered and issued a certificate on the trademark;
This timeline occurs without objections and rejections during the registration process. If there is a rejection or objection, it will take much longer.

Copyright
If the required documents have been completed, the application can be submitted with the following mechanism:
1. If all the requirements and documents are complete, then you can make an application;
2. Applications are made online by filling in every document and requirement specified;
3. After filling in the data is complete, DJKI will carry out the verification for 1 working day;
4. Issuance of the copyright certificate after approval.

LICENSE AGREEMENT IN INTELLECTUAL PROPERTY

A license agreement in Intellectual Property Rights (IPR) is a legal agreement between an intellectual property rights holder (licensor) and another party (licensee) that grants specific permissions or rights to the licensee to use a particular IPR. This license agreement stipulates the rights and obligations of each party, as well as the agreed terms of use of IPR.

The license agreement can be made on the object of intellectual property as regulated in Article 2 of Government Regulation Number 36 Year 2018 concerning the Recording of Intellectual Property License Agreements, which reads, recording of license agreements is carried out against intellectual property objects in the field of:

Copyright and related rights;
Patents;
Trademarks;
Industrial design;
Integrated circuit layout design;
Trade secret;
Plant Variety.

The provisions in PP 36 Year 2018 concerning the recording of intellectual property license agreements also state that the license agreement can only be carried out if the intellectual property object contained in Article 2 of PP 36 Year 2018 has been recorded or registered with the DJKI.

The license agreement made by both parties must be registered with the Ministry of Law and Human Rights through the DJKI. If it is not recorded, then the agreement is not valid to the 3rd party and only applies to the two parties to the agreement.

It is necessary to do a notarial deed in licensing intellectual property rights to be used as valid and perfect evidence through an authorized notary.

TRANSFER OF INTELLECTUAL PROPERTY RIGHTS AND LICENSES

Suppose you want to transfer your intellectual property rights to other people. The process can be done by applicable laws and regulations, including if the intellectual property rights are in the form of Copyright, Trademark Rights, or Patent Rights can be done by:

Inheritance;
Will;
Waqf;
Grant;
Agreement;
Other reasons justified by laws and regulations.

Intellectual property rights in the form of Trade Secrets, Integrated Circuit Layout, and Plant Varieties can be done by:

Inheritance;
Will;
Grant;
Agreement;
Other reasons justified by laws and regulations.

Intellectual property rights in the form of Industrial Design can be done by:

Inheritance;
Grant;
Agreement;
Other reasons justified by laws and regulations.

INTELLECTUAL PROPERTY DISPUTE RESOLUTION OPTIONS

You can resolve IP disputes through litigation or non-litigation efforts. Litigation efforts mean that the resolution of intellectual property disputes is requested by the general court, The competence of the commercial court in examining and deciding intellectual property disputes includes;

Claim for compensation
Trademark cancellation
Cessation of all activities for violation of Copyright, trademark, patent, etc.

How We Can Help

Intellectual property rights are closely related to the business process in Indonesia, where in business it is necessary to register the work they sell to get legal protection in Indonesia, the process of registering and recording an IPR must be done carefully and thoroughly and requires more detailed attention in the registration process. This is necessary to avoid bad things such as brands that are copied, or patents that are patented by other parties, causing intellectual property rights disputes.

At Putranto Alliance, we conduct a thorough evaluation of your company’s innovative products. After identifying the critical elements that must be protected, our IPR consultant team will design the product’s proper protection strategy. We assist companies in applying for patents, trademarks, and copyrights in accordance with applicable provisions and procedures.

FAQ

Why Intellectual Property rights must be protected?

Intellectual property rights (IPR) must be protected for various reasons that ensure the sustainability and advancement of society, the economy, and innovation.

What kind of services are offered by IPR Consultants?

The services offered by the IP Consultant usually start from IPR registration, handling of IPR disputes, IPR portfolio management, licenses, and agreement.

References

The Law of Republic Indonesia Number 20 of 2016 regarding Copyright and Geographical Indication

The Law of Republic Indonesia Number 13 of 2016 regarding Patent

The Law of Republic Indonesia Number 32 of 2000 on Layout Design Of Integrated Circuits

The Law of Republic Indonesia Number 31 of 2000 regarding Industrial Design

The Law of Republic Indonesia Number 30 of 2000 regarding Trade Secret

The Law of Republic Indonesia Number 29 of 2000 regarding Protection of Plant Variety

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