Industrial Design License Service

Written by Yovitha Manuella on 28/03/2024
The author’s views are entirely their own and may not always reflect the views of Putranto Alliance.

Industrial design is integral to the identity of franchises, necessitating an understanding of its legal framework in Indonesia. This product sheet explores the definition of industrial design, its differentiation from trademark registration, its relevance to franchise business, the process of industrial design protection, and steps to enter into an industrial design license agreement for franchises.

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Definition

In legal terms, industrial design defines the ornamental or aesthetic aspect of a product, crucial for branding. It encompasses shaping products in three dimensions or incorporating patterns, colors, and ornaments in two dimensions. This visual identity is pivotal for franchises, spanning various product categories like consumer electronics, furniture, and more.

The Importance

Industrial design serves as a visual representation of a franchise’s identity, distinguishing it from competitors and attracting consumers. It contributes to brand recognition and influences consumer purchasing decisions. Understanding industrial design protection is vital for franchises to safeguard their unique visual elements and maintain their competitive edge in the market.

The Best Time to Do

The optimal time to pursue industrial design protection is during the initial stages of franchise establishment or when introducing new products or services. By securing industrial design rights early, franchises can prevent unauthorized use of their visual elements and establish a strong brand presence from the outset.

Benefits

Industrial design protection offers several benefits to franchises, including:

  1. Brand Differentiation
    Securing industrial design rights helps franchises distinguish their products or services from competitors, enhancing brand recognition and consumer loyalty.

  2. Market Exclusivity
    By preventing unauthorized use of their unique designs, franchises can maintain exclusivity in the market, reducing the risk of imitation and dilution of their brand identity.

  3. Legal Protection
    Industrial design registration provides legal recourse against infringement, allowing franchises to take legal action against unauthorized use of their designs and safeguard their intellectual property rights.

  4. Enhanced Market Competitiveness
    With protected industrial designs, franchises can leverage their distinctive visual elements to attract customers, gain market share, and outperform competitors.

  5. Increased Brand Value
    A strong portfolio of registered industrial designs enhances the overall value of the franchise brand, making it more attractive to investors, partners, and potential buyers.

Process

Entering into an industrial design license agreement for a franchise business involves several key steps:

  1. Meeting Between Parties
    Establish communication and trust between the franchisor and potential licensees. Understanding each other's goals and requirements lays the foundation for a successful agreement.

  2. Mutual Expectations
    Gain insight into the expectations, priorities, and needs of both parties involved in the agreement. This mutual understanding facilitates the development of a comprehensive and mutually beneficial license agreement.

  3. Reviewing Requirements
    Ensure that the party entering the agreement holds the industrial design rights and intends to use them in accordance with the agreement. Seek legal advice to ensure compliance with relevant laws and regulations.

  4. Drafting the Agreement
    Prepare a detailed license agreement outlining the terms, conditions, and scope of the license. Include essential provisions such as the duration of the license, territory, royalty payments, and dispute resolution mechanisms.

  5. Review and Negotiation
    Carefully review the draft agreement to ensure clarity, accuracy, and alignment with the interests of both parties. Negotiate any discrepancies or areas of concern to reach a mutually acceptable agreement.

  6. Signing the Agreement
    Once both parties are satisfied with the terms and conditions, sign the license agreement. Ensure that authorized representatives from both sides execute the agreement in accordance with legal requirements.

  7. Record Keeping
    Document the license agreement in the General Register of Industrial Designs and publish it in the Industrial Design Gazette to establish its legal validity and enforceability.

How We Can Help

At Putranto Alliance, we specialize in providing comprehensive consulting services and legal assistance tailored to the needs of franchise businesses. Our expertise extends to industrial design registration and licensing agreements, essential components for safeguarding intellectual property rights in the franchise industry. We offer strategic guidance and legal support throughout the process of registering industrial designs, ensuring that your franchise’s visual identity remains protected. Additionally, our team is experienced in developing customized licensing agreements that address the specific requirements of your franchise model. By entrusting us with your industrial design needs, you can benefit from our commitment to delivering practical solutions for long-term success in the competitive franchise market.

FAQs

Industrial design protection refers to the legal safeguarding of the ornamental or aesthetic aspects of a product, including its visual design, shape, or surface ornamentation.

Industrial design protection provides exclusive rights to the franchisor, preventing others from using or imitating the protected designs. This exclusivity enhances brand value, reduces the risk of imitation by competitors, and adds a layer of legal protection, ultimately contributing to the long-term success and market presence of the franchise.

The coordination between franchisees and franchisors depends on the terms outlined in the franchise agreement. In many cases, the franchisor holds the intellectual property rights, including industrial design protection, and grants license rights to franchisees.

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