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What different types of intellectual property rights exist to protect: (a) Inventions (e.g. patents, supplementary protection certificates, rights in trade secrets, confidential information and/or know-how); (b) Brands (e.g. trade marks, cause of action in passing off, rights to prevent unfair competition, association marks, certification marks, hallmarks, designations of origin, geographical indications, traditional speciality guarantees); (c) Other creations, technology and proprietary interests (e.g. copyright, design rights, semiconductor topography rights, plant varieties, database rights, rights in trade secrets, confidential information and/or know-how).
(a) Inventions (e.g. patents, supplementary protection certificates, rights in trade secrets, confidential information and/or know-how)
(a) Inventions
- Standard Patents: Governed by Law No. 13/2016 (as amended by Law No. 65/2024). Protects products or processes demonstrating global novelty, an inventive step, and industrial applicability. Software-implemented inventions are eligible if they drive a physical, technical interaction with hardware.
- Simple Patents : Governed by Law No. 13/2016. Equivalent to a utility model; protects localized structural or tangible advancements showing novelty and utility.
- Trade Secrets: Governed by Law No. 30/2000. Protects confidential technical formulas, production methods, or business data with commercial value, provided reasonable internal security measures are maintained.
- Excluded Regimes: Indonesia does not offer Supplementary Protection Certificates (SPCs) or regulatory data exclusivity extensions for pharmaceuticals.
(b) Brands (e.g. trade marks, cause of action in passing off, rights to prevent unfair competition, association marks, certification marks, hallmarks, designations of origin, geographical indications, traditional speciality guarantees);
(b) Brands
- Trademarks : Governed by Law No. 20/2016 and updated by MOL (Minister of Law) Regulation No. 5/2026. Operates on a strict first-to-file, constitutive system. Protects distinctive words, logos, 3D configurations, and non-traditional signs (Sound and Hologram marks). Purely functional 3D shapes face mandatory refusal.
- Collective & Association Marks: Governed by Law No. 20/2016. Distinctive signs used jointly by corporate networks, cooperatives, or trade associations to certify shared production parameters or qualitative standards. Conceptually absorbs “Association Marks.” Applications require a mandatory Agreement on Use outlining internal supervision and non-compliance penalties.
- Certification Marks: No standalone registration category exists under the Trademark Act. Quality, safety, or religious certification parameters are managed either via the Collective Mark framework or public law administrative tracks (e.g., SNI safety standards or BPJPH Halal certification).
- Geographical Indications & Designations of Origin: Governed by Law No. 20/2016. Indonesia combines Protected Designations of Origin (PDO) and Protected Geographical Indications (PGI) into a single statutory Geographical Indications (GI) registry track. Foreign designations are protectable only if actively registered in their origin country.
- Hallmarks & Traditional Speciality Guarantees (TSGs): Not recognized under Indonesian IP law. Commodity purity is regulated by the Ministry of Trade under consumer protection statutes. Traditional recipes or non-localized methods are preserved via state-held Communal Intellectual Property
- Unfair Competition & Passing Off: Common-law actions in “passing off” do not exist. Brand owners must seek civil damages for misrepresentation via :
- Article 1365 of the Civil Code (Civil Tort) or,
- Criminal prosecution via Article 382 bis of the Penal Code for deceptive trade practices.
(c) Other creations, technology and proprietary interests (e.g. copyright, design rights, semiconductor topography rights, plant varieties, database rights, rights in trade secrets, confidential information and/or know-how).
(c) Other Creations, Technology, and Proprietary Interests
- Copyright : Governed by Law No. 28/2014. Automatically protects original expressions fixed in a tangible medium. Computer software and source code are explicitly protected as literary works.
- Industrial Designs : Governed by Law No. 31/2000. Protects the novel external aesthetic, ornamental shape, lines, or color configurations of an industrial product.
- Layout Designs of Integrated Circuits (DTLST): Governed by Law No. 32/2000. Serves as the semiconductor topography right, protecting original 3D configurations of active components in microchips.
- Plant Varieties : Governed by Law No. 29/2000. A sui generis track administered by the Ministry of Agriculture protecting distinct, uniform, stable, and novel plant varieties.
- Database Rights: No standalone sui generis database extraction rights exist. Compilations of data are protected strictly under the Copyright Law, provided the structural arrangement displays original, creative human selection.
- Trade Secrets : Governed by Law No. 30/2000. Automatically protects confidential technical formulas, production methods, technology, or business data with commercial value, provided reasonable internal security measures are maintained. No state registration is required.
- Confidential Information & Know-How: Technical or business know-how that satisfies the criteria of commercial value and active secrecy is automatically absorbed and protected under Law No. 30/2000 on Trade Secrets.
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What is the duration of each of these intellectual property rights? What procedures exist to extend the life of registered rights in appropriate circumstances?
a) Inventions, Secrets, and Technical Solutions
- Standard Patents : Valid for a fixed, non-renewable term of 20 years from the filing date (Law No. 13/2016). Indonesia does not provide any legal procedure, such as Supplementary Protection Certificates (SPCs) or regulatory data exclusivity, to extend a patent’s life beyond this term.
- Simple Patents : Valid for a fixed, non-renewable term of 10 years from the filing date (Law No. 13/2016). No extension procedures exist.
- Trade Secrets, Confidential Information & Know-How: Protected indefinitely for as long as the information meets the statutory requirements of being secret, possessing economic value, and being actively maintained via internal confidentiality measures (Law No. 30/2000). No registration or formal extension procedures apply.
(b) Brands and Commercial Identifiers
- Trademarks, Service Marks, and Collective Marks: Valid for 10 years from the filing date (Law No. 20/2016).
– Extension Procedure: Rights can be extended indefinitely for successive 10-year periods. Under MOL Regulation No. 5/2026, renewal applications must be submitted electronically within 6 months before the expiry date, or during a 6-month grace period after expiry (subject to a late fee). The applicant must submit a declaration of active commercial use.
- Geographical Indications (GI): Protected indefinitely for as long as the specific environmental traits, natural conditions, or human craftsmanship that give the product its unique reputation and quality remain intact (Law No. 20/2016). No renewal filing is required.
(c) Other Creations, Media, and Biological Interests
- Copyright : Governed by Law No. 28/2014. The duration depends strictly on the nature of the work:
– Computer Programs/Software, Databases, and Cinematography: Valid for 50 years from the first official publication.
– Personal Artistic, Musical, and Literary Works: Valid for the lifetime of the author plus 70 years after their death.
– Extension Procedure: Copyright durations are statutory and fixed. No legal procedures exist to extend these terms.
- Industrial Designs : Valid for a fixed, non-renewable term of 10 years from the filing date (Law No. 31/2000). No extension procedures exist.
- Layout Designs of Integrated Circuits : Valid for a fixed, non-renewable term of 10 years from either the registration date or the date the microchip topography is first commercially exploited anywhere in the world (Law No. 32/2000). No extension procedures exist.
- Plant Variety Protection (PVP) : Governed by Law No. 29/2000. Valid for 20 years for annual crops, and extended to 25 years for perennial plants, vines, and trees. These terms are statutory and non-renewable.
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Who is the first owner of each of these intellectual property rights and is this different for rights created in the course of employment or under a commission?
The comprehensive breakdown of first ownership across all IP assets is structured as follows:
(a) Inventions, Secrets, and Technical Solutions
- Standard Patents & Simple Patents: First ownership initially rests with the physical inventor.
– Employment & Commission: Pursuant to Article 12 of Law No. 13/2016 on Patents (upheld in the Law No. 65/2024 amendments), the right to a patent for an invention developed within an employment relationship or under a commercial commission belongs automatically to the Employer or the Commissioning Party, unless expressly agreed otherwise in writing.
– Inventor Rights: The employee-inventor retains an unalienable moral right to be named on the patent certificate and possesses a statutory right to receive equitable compensation based on the economic value of the invention.
- Trade Secrets, Confidential Information & Know-How: First ownership vests in the individual or corporate entity that exercises legitimate, lawful control over the data and maintains its secrecy (Law No. 30/2000).
– Employment & Commission: Proprietary systems, technical formulas, or business metrics created by employees for the business belong to the employer. This is reinforced operationally via employment contracts and non-disclosure agreements (NDAs).
(b) Brands and Commercial Identifiers
- Trademarks: Ownership is strictly dictated by a first-to-file, constitutive system (Law No. 20/2016). The legal owner is the first person or corporate entity to successfully register the sign with the Directorate General of Intellectual Property (DGIP), irrespective of prior commercial use or market exposure.
– Employment & Commission: If an internal employee or external design agency designs a brand logo, the intellectual property rights in the trademark belong exclusively to the business that secures the first-to-file registration date at the DGIP.
- Geographical Indications : Governed by Law No. 20/2016. Because GIs protect regional traits, reputation, and environmental qualities tied to a specific location, individual private ownership does not exist. First ownership is strictly collective and communal.
– Eligible Owners: GIs can only be applied for and held by a provincial/regency government agency or an institution representing the local community (e.g., a regional cooperative).
– Employment & Commission: The concepts of employment or commercial commission do not apply to Geographical Indications. An employee or independent contractor cannot create or own a private GI right for a company.
(c) Other Creations, Technology, and Proprietary Interests
- Copyright (Software, Databases, Literary, and Artistic Works): First ownership vests immediately and automatically in the Creator upon fixation in a tangible medium (Law No. 28/2014).
– Employment: Pursuant to Article 36 of Law No. 28/2014, if a copyrighted work (including software code) is created within the scope of employment, first ownership of the copyright remains with the Employee-Creator, unless otherwise agreed in a written contract. Employers do not automatically own works created by employees; explicit IP Assignment clauses must be drafted into employment agreements to transfer these economic rights to the company.
– Commission: Pursuant to Article 35 of Law No. 28/2014, for works produced under a commercial commission, the default first owner is the Independent Contractor/Vendor, unless a written agreement specifies that the copyright transfers to the commissioning party.
- Industrial Designs: First ownership belongs to the visual designer (Law No. 31/2000).
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- Employment & Commission: Pursuant to Article 7 of Law No. 31/2000, where an industrial design is created within an employment relationship or based on a specific commission, the first owner of the right is the Employer or the Commissioning Party, unless a prior written agreement states otherwise.
- Layout Designs of Integrated Circuits (DTLST): Governed by Law No. 32/2000.
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- Employment & Commission: Pursuant to Article 6 of Law No. 32/2000, where an integrated circuit layout is created within the course of an employment relationship or based on a third-party commercial commission, the default first owner of the right is the Employer or the Commissioning Party, unless overridden by an explicit written agreement.
- Plant Variety Protection (PVP) : Governed by Law No. 29/2000. First ownership belongs strictly to the Plant Breeder who physically discovers and develops the new variety.
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- Employment & Commission: Under Article 5 of Law No. 29/2000, if a new plant variety is bred within the scope of employment or under a commercial commission, the statutory first owner is the Employer or the Commissioning Party, unless a written contract specifies otherwise. The physical breeder retains an unalienable moral right to be named and a statutory right to fair economic compensation.
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Which of the intellectual property rights described in section A are registered rights?
To secure statutory enforcement power, an absolute monopoly, and legal standing before the Commercial Courts, the following assets must be formally registered and granted by DGIP:
- Standard Patents & Simple Patents : Formally examined and granted by the Directorate General of Intellectual Property (DGIP).
- Trademarks, Service Marks, & Collective Marks : Governed by a strict first-to-file system; protection is purely constitutive upon final approval and issuance of the registration certificate by the DGIP.
- Geographical Indications : Must be collectively registered by a valid local community or government institution to receive regional source protection.
- Industrial Designs : Protection is conditional upon a formal application and passing a global novelty examination track at the DGIP.
- Layout Designs of Integrated Circuits (DTLST): Semiconductor topographies require formal electronic filing and registry recordation to execute exclusive rights.
- Plant Variety Protection (PVP): Administered and officially registered under a specialized sui generis registry track overseen by the Ministry of Agriculture.
Unregistered Rights
The following rights arise automatically by operation of law and do not require state registration to remain legally valid or protectable:
- Copyright : Arises automatically and instantly from the moment an original work (such as software, music, or literature) is fixed in a tangible medium. Note for Legal 500: While voluntary recordation via the DGIP e-portal is highly recommended for prima facie evidence in court, it is not a prerequisite for protection.
- Trade Secrets : Arises automatically without any government registry filing. Protection exists continuously as long as the technical or business information retains economic value and the owner enforces internal security protocols (NDAs).
- Confidential Information & Know-How: General proprietary information does not have independent statutory property status. It relies entirely on unregistered, private civil contracts and binding confidentiality clauses under common contract law.
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Who can apply for registration of these intellectual property rights and, briefly, what is the procedure for registration?
Brief Registration Procedures
- Trademarks, Service Marks, and Collective Marks
- Procedure: 100% digital filing via the DGIP e-portal.
- Stages: Administrative check → 2-month publication stage for third-party oppositions → Substantive examination of absolute/relative grounds → Registration certificate issuance.
- Geographical Indications (GI)
- Procedure: Online filing at the DGIP backed by a comprehensive Book of Requirements detailing regional environmental factors, production methods, and quality links to the territory.
- Stages: Administrative review → Technical assessment by the GI Expert Team → 2-month publication stage for public opposition → Final approval and registration. Note: Foreign GIs must be fully registered in their country of origin before applying.
- Standard and Simple Patents
- Procedure: Electronic filing of claims, abstract, and description in Bahasa Indonesia. Excess claim fees must be settled at the exact minute of electronic submission to secure a priority date.
- Stages: Formalities check → Publication stage (6 months for Standard; 2 months for Simple) → Substantive examination (must be explicitly requested by the applicant within 36 months for Standard patents) → Patent grant.
- Industrial Designs
- Procedure: Online submission of graphical drawings, photographs, and a statement of novelty.
- Stages: Formalities review → 3-month publication stage for public novelty objections → Substantive check → Registration certificate issuance.
- Layout Designs of Integrated Circuits (DTLST)
- Procedure: Online submission of graphic layouts, technical descriptions, and statement of originality. If already commercially exploited, it must be filed within 2 years of the first exploitation date.
- Stages: Formalities review → Publication → Automatic grant without technical field testing (unless a third-party challenge is filed).
- Plant Variety Protection (PVP)
- Procedure: Managed separately by the Ministry of Agriculture.
- Stages: Administrative review → Mandatory Technical Testing (DUS Test) via active cultivation to verify that the variety is distinct, uniform, and stable → PVP certificate grant.
- Copyright Recordation (Optional)
- Procedure: Protection is automatic upon fixation, but voluntary recordation is completed within 24 to 48 hours via the automated e-Hak Cipta The applicant uploads the digital work to secure immediate prima facie evidence for court.
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How long does the registration procedure usually take?
Following major procedural overhauls implemented under MOL (Minister of Law) Regulation No. 5/2026 and MOL Regulation No. 6/2026, the Directorate General of Intellectual Property (DGIP) has drastically fast-tracked its processing timelines.
Assuming a straightforward application with no third-party oppositions or office actions, standard processing times are as follows:
- Trademarks: 5 to 7 months. Note : Under Regulation 5/2026, the substantive examination period has been cut down from 150 days to just 30 days if no public opposition is filed. If an opposition is logged, the timeline extends to roughly 8 to 12 months.
- Simple Patents (Utility Models): 6 months. Regulation 6/2026 introduced an expedited 14-day publication window, allowing incremental tech innovations to achieve full granting within half a year.
- Industrial Designs: 5 to 6 months. This includes a mandatory 3-month public disclosure/publication period to clear potential novelty objections.
- Layout Designs of Integrated Circuits (DTLST): 2 to 3 months. Because the semiconductor registry acts as a declarative deposit system, it skips proactive technical field testing and proceeds directly to an administrative grant
- Standard Patents: 30 to 36 months. While formalities and publication clear within the first year, the substantive technical review stage remains thorough. However, under the 2026 rules, applicants can request an accelerated “early examination” track to significantly reduce this timeline.
- Geographical Indications (GI): 8 to 12 months. The duration is dictated by the mandatory physical and technical evaluation conducted by the GI Expert Board.
- Plant Variety Protection (PVP): 18 to 24 months. The timeline is prolonged due to the mandatory, multi-season DUS (Distinctness, Uniformity, and Stability) field cultivation tests performed by the Ministry of Agriculture.
- Copyright Recordation (Optional): 24 to 48 hours. Handled instantly via the automated cryptographic e-Hak Cipta portal.
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Do third parties have the right to take part in or comment on the registration process?
Yes, third parties have explicit statutory rights to participate in, comment on, or oppose the registration process across all major registered intellectual property assets in Indonesia. These interventions occur primarily during fixed public opposition windows before a final grant is issued.
The specific intervention frameworks by asset class include:
- Trademarks, Service Marks, and Collective Marks
- The Right: Any interested third party can file a formal Opposition against a pending mark.
- The Window: Within 2 months from the mark’s publication date in the Official Trademark Gazette.
- The Procedure: Oppositions must be submitted digitally via the DGIP e-portal, specifying relative grounds (e.g., confusing similarity to a prior mark, well-known mark status, or bad-faith filing) or absolute grounds. The applicant is given an opportunity to file a Counter-Statement (Hearing) within 2 months, after which the DGIP rules on the opposition during the substantive examination phase.
- Standard and Simple Patents
- The Right: Any third party can submit written Comments or Objections regarding the patentability of the invention.
- The Window: Within 6 months for Standard Patents and 2 months for Simple Patents from the publication date.
- The Procedure: Objections must be filed electronically with the DGIP and must focus strictly on technical grounds (e.g., lack of global novelty, lack of an inventive step, or non-patentable subject matter) backed by prior art references. These submissions are directly provided to the patent examiner for evaluation during the substantive examination phase.
- Industrial Designs
- The Right: Any interested party can file a formal written Objection challenging the registration.
- The Window: Within 3 months from the publication date in the Industrial Design Gazette.
- The Procedure: Objections must outline lack of objective novelty. If an objection is logged, the DGIP is statutorily mandated to transition the application into a formal Substantive Examination phase to rule on the novelty claim.
- Layout Designs of Integrated Circuits
- The Right: Third parties can file a written Objection against the topography.
- The Window: Within 3 months from the publication date.
- The Procedure: Because the DTLST system does not include an automatic technical examination, third-party objections are the primary mechanism used to trigger a substantive validity review before the DGIP issues a final certificate.
- Geographical Indications (GI)
- The Right: Any party can submit an Opposition against a pending regional tag.
- The Window: Within 2 months from the publication date.
- The Procedure: Oppositions are evaluated by the specialized GI Expert Team and typically address conflicts with existing trademarks, generic terms, or boundary definitions.
- Plant Variety Protection (PVP)
- The Right: Any individual or entity can file a written Objection with the Ministry of Agriculture.
- The Window: Within 6 months from the publication date of the variety.
- The Procedure: Objections generally contest the breeder’s right, ownership claims, or the variety’s fulfillment of the distinct, uniform, and stable (DUS) criteria.
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What (if any) steps can the applicant take if registration is refused?
If the Directorate General of Intellectual Property (DGIP) or the Ministry of Agriculture issues a final refusal, applicants have clear administrative and judicial channels to appeal the decision.
The specific recourse mechanisms and appellate bodies include:
- Trademarks, Service Marks, and Collective Marks
- Administrative Appeal: If a trademark application is rejected following a substantive examination, the applicant can file an Appeal Petition with the independent Trademark Appeal Commission.
- Timeline: The appeal must be submitted digitally via the DGIP portal within 3 months from the date of receiving the official notification of refusal.
- Judicial Recourse: If the Trademark Appeal Commission upholds the refusal, the applicant can escalate the dispute by filing a civil lawsuit to overturn the decision before the Commercial Court within 3 months of receiving the commission’s decision. Final appeals against the Commercial Court’s ruling must be filed via Cassation to the Supreme Court.
- Standard and Simple Patents
- Administrative Appeal: A final rejection issued by a patent examiner can be challenged by filing an Appeal Petition before the Patent Appeal Commission.
- Timeline: The petition must be filed electronically within 3 months from the date of the official refusal notification.
- Judicial Recourse: If the Patent Appeal Commission rejects the appeal, the applicant has 3 months from receipt of the decision to file a lawsuit before the Commercial Court. Subsequent appeals can only be taken to the Supreme Court via Cassation.
- Industrial Designs and Layout Designs of Integrated Circuits (DTLST)
- Direct Judicial Recourse: Unlike the trademark and patent frameworks, there are no independent administrative appeal commissions for Industrial Designs or Integrated Circuits.
- Timeline & Forum: If the DGIP issues a final administrative refusal, the applicant must bypass administrative appeals and file a civil lawsuit directly against the DGIP before the Commercial Court.
- Deadline: The lawsuit must be initiated within 3 months from the date the refusal notice was received.
- Geographical Indications (GI)
- Administrative Appeal: Refusals are appealed directly to the Trademark Appeal Commission (which shares jurisdiction over GIs under Law No. 20/2016).
- Timeline & Escalation: Must be filed within 3 months from the refusal notice. If rejected by the commission, the applicant can challenge the ruling before the Commercial Court within 3 months.
- Plant Variety Protection
- Administrative Appeal: If the Center for PVP refuses a variety grant, the applicant can file an appeal with the PVP Appeal Commission, an independent body under the Ministry of Agriculture.
- Timeline & Escalation: The appeal must be submitted within 3 months from the notification of rejection. If the PVP Appeal Commission upholds the refusal, the applicant can file a civil lawsuit before the Administrative Court , rather than the Commercial Court.
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What are the current application and renewal fees for each of these intellectual property rights?
Official government intellectual property fees in Indonesia are classified as Non-Tax State Revenue. Under the latest updates established via Government Regulation No. 45 Year 2024 and enforced by the Directorate General of Intellectual Property (DGIP), standard commercial tariffs for “General” entities (excluding localized discount rates for micro-to-small enterprises are detailed below:
- Trademarks, Service Marks, and Collective Marks
- Application Fee: IDR 2,800,000 per class (for electronic filings) or IDR 2,000,000 per class (for manual filings).
- Renewal Fee:
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- Timely Renewal (within 6 months prior to expiry): IDR 3,500,000 per class.
- Grace Period Renewal (within 6 months after expiry): IDR 7,000,000 per class (subject to a 100% late surcharge).
- Standard and Simple Patents
- Application Fee: IDR 1,250,000 for electronic standard patents and IDR 1,000,000 for simple patents. Note that substantive examination fees must be requested separately (IDR 3,500,000 for standard; IDR 750,000 for simple). Under 2026 procedural updates, any excess claim fees exceeding 10 claims are charged accumulatively at the precise time of application to lock in a valid priority date.
- Renewal/Maintenance Fee (Annuities): Patents do not undergo a singular “renewal” step. Instead, they require the payment of progressive annual maintenance fees (annuities) to keep the right active:
- Standard Patents: Begins at a base fee of IDR 1,500,000 for Year 1, scaling up progressively to IDR 8,500,000 for Year 20, plus an additional surcharge per claim.
- Simple Patents: Scaled progressively from Year 1 to Year 10.
- Industrial Designs
- Application Fee: IDR 1,100,000 per electronic application submission.
- Renewal Fee: Industrial design rights are legally non-renewable; no renewal fee structure exists.
- Layout Designs of Integrated Circuits (DTLST)
- Application Fee: IDR 400,000 per topography registration request.
- Renewal Fee: Integrated circuit rights are legally non-renewable; no renewal fee structure exists.
- Geographical Indications (GI)
- Application Fee: IDR 650,000 for initial registration filing. However, under the 2024 revisions, a specialized technical evaluation fee of IDR 1,000,000 is collected to cover the operational analysis of the Book of Requirements by the GI Expert Team.
- Renewal Fee: Valid indefinitely; no renewal or maintenance fees apply.
- Plant Variety Protection (PVP)
- Application Fee: Paid directly to the Ministry of Agriculture. The baseline administrative application fee is IDR 500,000. However, the applicant must also cover the physical operational costs of the mandatory multi-season DUS (Distinctness, Uniformity, and Stability) field examination tests, which vary based on crop taxonomy and location.
- Renewal/Maintenance Fee: Requires annual maintenance fees ranging from IDR 1,500,000 to IDR 3,000,000 per year to keep the certificate active.
- Copyright Recordation (Optional)
- Recordation Fee: Reduced under recent updates to IDR 200,000 per electronic application (or IDR 400,000 specifically for computer programs/software applications).
- Renewal Fee: Valid for fixed statutory terms; no renewal or maintenance fees apply.
Intellectual property application and maintenance fees in Indonesia are regulated under Government Regulation No. 45 Year 2024. For clear cross-border comparison, the standard commercial rates for corporate applicants are synthesized in the matrix below:
Official Indonesian IP Fee Structure (Standard Commercial Rates)
IP Asset Class Application / Initial Filing Fee Substantive Examination Fee Renewal / Annual Maintenance Fee Trademarks (Per Class)
• IDR 2,800,000 Included in filing fee • IDR 3.500,000 (Within 6 months before expiry)
• IDR 7.000,000 (Within 6 months after expiry)Standard Patents • IDR 1.250,000
• Plus excess claim fees over 10 claimsIDR 3.500.000 (Must be requested separately) Progressive Annual Annuities:
• Year 1: IDR 1,000,000
• Scales up progressively to Year 20: IDR 8,500,000 (plus per-claim surcharges)Simple Patents (Utility Models) • IDR 800.00 IDR 750,000 Progressive Annual Annuities:
• Scaled progressively from Year 1 through Year 10.Industrial Designs • IDR 800.000 Included in filing fee Legally non-renewable (No renewal fees) Integrated Circuits (DTLST) • IDR 700,000 Included in filing fee Legally non-renewable (No renewal fees) Geographical Indications • IDR 450.000 IDR 1.000.000 (Technical Expert Evaluation) Valid indefinitely (No renewal fees) Plant Varieties (PVP) • IDR 1.750.000 – 2.250.000 (Admin fee paid to Ministry of Agriculture) Variable costs depending on the multi-season DUS crop field testing Annual Maintenance Fees:
• IDR 1,500,000 to IDR 3,000,000 per year to maintain certificate.Copyright Recordation (Optional) • IDR 400,000 (Standard Works and Computer Programs) Automatic approval upon digital deposit Valid for statutory duration (No renewal fees) -
What are the consequences of a failure to pay any renewal fees and what (if any) steps can be taken to remedy a failure to pay renewal fees?
In Indonesia, transferring the ownership of any Intellectual Property (IP) asset demands a written contract followed by official recordal with the government. While unrecorded transfers bind the immediate contracting parties, they have no legal standing against third parties. Under Indonesian law, IP rights can be transferred via written agreement (such as a sale, merger, or acquisition), inheritance, testament, or a direct grant or endowment.
Across all IP assets, a set of Core Administrative Requirements must always be fulfilled:
- A signed Deed of Assignment explicitly stating the transfer of rights from the assignor to the assignee.
- Valid corporate legal documents (Company Deed/Establishment Act) or individual national identity cards (KTP/Passport) for both parties.
- A specific Power of Attorney (PoA) if the recordation is handled through a registered local IP consultant.
- Official payment of the Non-Tax State Revenue recordation fee.
- Full certified translations into Bahasa Indonesia if any document was originally executed in a foreign language.
The specific criteria across all recognized IP categories include:
- Trademarks: A formal assignment deed executed by both parties (notarized and Apostilled if signed outside Indonesia). To avoid misleading the public, similar or connected marks under the same owner for identical goods or services must be transferred together to the same recipient.
- Patents: A written assignment deed specifying the patent or application number, accompanied by a certified Indonesian translation if drafted in a foreign language Mandatory Recordation of Intellectual Property License Agreement. All outstanding annual maintenance fees (annuities) must be fully settled prior to filing.
- Copyrights: Only Economic Rights can be legally transferred; Moral Rights remain permanently with the original author. The assignment contract must explicitly define the scope, covering specific durations, geographic territories, and medium formats.
- Industrial Designs: A written transfer contract referencing the registration details Mandatory Recordation of Intellectual Property License Agreement. For transfers arising from inheritance or legal mandates, official probate documentation or court orders must be produced.
- Topography / Layout Designs of Integrated Circuits (DTLST): A formal written deed registered with the DGIP. The commercial transfer does not erase the original designer’s attribution rights, which must remain permanently on the certificate and official gazette.
- Trade Secrets: While the underlying asset remains unregistered to preserve its confidential status, a transfer of ownership must be recorded with the DGIP to legally bind third parties.
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What are the requirements to assign ownership of each of the intellectual property rights described in section A?
Assignment Requirements:
- A robust, private Asset Purchase Agreement or structured Assignment Contract detailing the asset scope.
- Signed, multi-party Non-Disclosure Agreements (NDAs) binding all technical teams to strict secrecy during the handover phase.
- Documented physical or digital transfer protocols ensuring all technical parameters remain highly confidential throughout the operational migration.
- Plant Varieties (PVP): Filed uniquely with the PVP Office under the Ministry of Agriculture (not the DGIP). It requires a written contract detailing breeding metrics and confirmation that all ongoing variety maintenance fees are paid Plant Variety Protection.
- Geographical Indications (GIs): Because GIs belong collectively to regional communities, they cannot be assigned to private individuals or entities. Only the authorization to use the GI can be extended through the authorized local collective group.
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Is there a requirement to register an assignment of any of these intellectual property rights and, if so, what is the consequence of failing to register?
Yes, under Indonesian law, it is mandatory to record the assignment of commercial Intellectual Property (IP) rights with the relevant government body. This covers Trademarks, Patents, Copyrights, Industrial Designs, Trade Secrets, Layout Designs of Integrated Circuits (DTLST), and Plant Variety Protection (PVP).
Recordal Requirements
- DGIP Registry: Registrations for Trademarks, Patents, Copyrights, Industrial Designs, Trade Secrets, and DTLST must be recorded with the Directorate General of Intellectual Property (DGIP/DGIP).
- Ministry of Agriculture Registry: Plant Variety assignments must be recorded with the Center for Plant Variety Protection and Agricultural Licensing (PVP Office).
- Geographical Indications Exception: GIs cannot be individually assigned or registered since they are collective community properties.
Consequences of Failing to Register
The statutory consequences for failing to record an IP assignment are severe and uniform across all Indonesian IP legislations:
- No Legal Effect Against Third Parties: An unrecorded assignment is only contractually binding between the immediate assignor and assignee. It does not exist in the eyes of the public or the state.
- Loss of Litigious and Enforcement Standing: If an unrecorded assignee attempts to file an infringement lawsuit in the Commercial Court or request law enforcement actions (such as police raids or customs seizures), the case will be rejected. The new owner lacks legal standing (persona standi in judicio) until their name is on the state register.
- Inability to Renew or Amend: The new owner cannot renew the IP asset, register licenses, or modify administrative details, as the government registry will only recognize the previous owner on record.
- Loss of Trade Secret Protection: For Trade Secrets specifically, failing to record the assignment compromises the statutory “reasonable efforts to maintain secrecy” mandate, stripping the asset of legal remedies in the event of unauthorized third-party leakage.
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What are the requirements to licence a third party to use each of the intellectual property rights described in section A?
In Indonesia, a licensor can grant a licensee the right to utilize intellectual property assets via a written licensing agreement. For the license to bind third parties and enable public enforcement, it must undergo mandatory recordal with the government registry under Government Regulation No. 36 of 2018 on the Recordal of Intellectual Property License Agreements.
General Licensing Restrictions (All IP Types)
To be eligible for official recordal, all Indonesian IP licenses must comply with two overriding statutory prohibitions:
- No Harm to the National Interest: The terms must not damage the Indonesian economy or clash with national strategic interests.
- No Unfair Competition: The contract cannot contain restrictive clauses that act as barriers to technological development or create unfair trade monopolies.
Asset-Specific Licensing Requirements
- Trademarks: The licensing agreement must explicitly list the registered trademark number and the precise scope of goods or services authorized. Unless specified otherwise in writing, a trademark license is legally presumed to be non-exclusive, and the licensor retains the right to grant additional licenses to other third parties or use the mark independently.
- Patents: The contract must identify the patent registration Licensing a patent grants the licensee the right to execute the manufacturing processes or commercialize the invention. The agreement cannot block the licensee from developing further technical improvements, provided those improvements do not infringe on the underlying patent.
- Copyrights: The license must state the specific economic rights being authorized (e.g., reproduction, distribution, public performance) alongside the exact duration and geographic territory. Moral rights are legally non-licensable and remain permanently attached to the author.
- Industrial Designs & Topography/Layout Designs : The document must reference the official registration details from the DGIP. The license grants the right to commercially manufacture, sell, or import products embodying the protected physical aesthetic or three-dimensional circuit layouts.
- Trade Secrets: Because trade secrets are defined by non-disclosure, the licensing agreement must explicitly detail the operational boundaries of the technical know-how. It is legally vital that the contract incorporates strict confidentiality protocols and data access limits to prevent the asset from entering the public domain.
- Plant Varieties (PVP): Unlike other assets filed with the DGIP, plant variety licenses must be processed through the PVP Office under the Ministry of Agriculture. The agreement must define the permitted cultivation, propagation, and commercial distribution parameters for the specific crop variety.
- Geographical Indications (GIs): Because GIs are collective community properties, a GI cannot be licensed commercially via private contracts for corporate profit. Instead, the right to use a GI is granted by adding qualified local producers to the recognized collective user group through the authorized local GI collective management body.
Core Administrative Document Checklist
To finalize a license recordal, the following clean documents must be submitted to the registry:
- The Original License Agreement (accompanied by a certified Indonesian translation if drafted in a foreign language).
- Valid Identity Credentials (KTP/Passport) or official corporate establishment deeds for both the licensor and licensee.
- A signed Power of Attorney (PoA) if the recordal application is managed via a registered local IP consultant.
- Official confirmation of payment for the statutory state revenue fee.
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Is there a requirement to register a licence of any of these intellectual property rights and, if so, what is the consequence of failing to register?
Authorizing an external party to commercialize an intellectual property asset in Indonesia must be executed via a written contract and formally recorded with the state. Under Government Regulation No. 36 of 2018, omitting this public registration phase means the arrangement holds no legal effect against third parties. While the deal remains valid privately between the signatories, the licensee cannot assert their rights in court or defend their authorization against adverse claims.
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Are exclusive and non-exclusive licensees given different rights in respect of the enforcement of the licensed IP, and if so, how do those rights differ?
Under Indonesian law, exclusive licensees and non-exclusive licensees are granted fundamentally different rights regarding the independent enforcement of the licensed IP.
The differences across the statutory frameworks (such as Trademarks, Patents, and Copyrights) are structured as follows:
Exclusive Licensees
- Independent Enforcement Standing: An exclusive licensee is legally granted the independent right to initiate civil lawsuits, claim monetary damages, or request injunctions against third-party infringers in the Commercial Court.
- Default Right: Unless the written licensing agreement explicitly states otherwise, an exclusive license automatically empowers the licensee to act on behalf of the IP asset without requiring a separate power of attorney or joint filing with the original IP holder.
- Joint Actions: They can choose to file enforcement actions independently or jointly alongside the licensor/owner.
Non-Exclusive Licensees
- No Independent Enforcement Right: A non-exclusive licensee does not possess the statutory right to independently sue or enforce the IP asset against third-party infringers.
- Licensor Dependency: Because multiple third parties hold concurrent rights to use the same IP asset, enforcement remains the exclusive prerogative of the original IP owner or an exclusive license holder.
- Contractual Exception: For a non-exclusive licensee to participate in enforcement actions, the original IP holder must either file the lawsuit themselves (naming the licensee as an affected party) or grant a specific, explicit Power of Attorney (PoA) to sue within their private commercial contract.
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Are there criminal sanctions for infringement of any intellectual property rights, and if so, what are they and how are they invoked?
Yes, Indonesian statutory law imposes criminal penalties, comprising imprisonment and monetary fines, for the unauthorized commercial exploitation of intellectual property assets.
Overview of Criminal Sanctions
- Trademarks: Unauthorized use of an identical registered mark carries up to five years’ imprisonment or a maximum fine of IDR 2 billion. Using a confusingly similar mark carries up to four years’ imprisonment or a fine of up to IDR 500 million.
- Patents: Infringing a protected patent carries a maximum penalty of four years’ imprisonment or a fine of up to IDR 1 billion. Infringement involving pharmaceutical products or processes carries up to five years’ imprisonment or a fine of up to IDR 2 billion.
- Copyrights: Unauthorized commercial reproduction or distribution of copyrighted works carries a maximum penalty of up to ten years’ imprisonment or a fine of up to IDR 4 billion, depending on the nature of the creative work.
- Industrial Designs: Deliberate commercial replication of a registered design triggers a maximum penalty of forty-five months’ imprisonment or a fine of up to IDR 300 million.
- Topography / Layout Designs of Integrated Circuits (DTLST): Unauthorized commercial replication, importation, or distribution of a protected layout design results in up to three years’ imprisonment or a fine of up to IDR 300 million.
- Trade Secrets: Disclosing, obtaining, or exploiting a protected trade secret in breach of a confidentiality obligation carries up to three years’ imprisonment or a maximum fine of IDR 300 million.
- Plant Variety Protection (PVP): Intentional, unauthorized commercial use, propagation, or distribution of a protected plant variety carries a maximum penalty of up to seven years’ imprisonment or a fine of up to IDR 2.5 billion.
- Geographical Indications (GIs): Unlawful commercial use of a registered geographical indication or falsely exploiting its regional identity is subject to up to four years’ imprisonment or a fine of up to IDR 2 billion.
Invocation and Enforcement Procedures
- Complaint-Based System : All criminal intellectual property offenses in Indonesia are complaint-based. Law enforcement agencies cannot initiate an investigation, execute raids, or seize goods unless a formal criminal complaint is filed by the registered right holder, their authorized exclusive licensee, or the authorized local collective group (for GIs).
- Investigatory Authorities: The right holder may lodge a formal complaint with either the Special Crimes Unit of the National Police or the Civil Servant Investigators at the Directorate General of Intellectual Property (DGIP). For Plant Varieties, coordination with technical investigators under the Ministry of Agriculture is required.
- Evidentiary Requirements: The complainant must submit comprehensive evidence, including the original IP registration certificate, authenticated samples of the infringing items, proof of purchase, and a technical comparison report demonstrating the infringement.
- Alternative Dispute Resolution: Current law enforcement protocols heavily encourage the parties to seek mediation or settlement before a case is forwarded to the state prosecutor for formal trial.
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What other enforcement options are available for each of the intellectual property rights described in section A? For example, civil court proceedings, intellectual property office proceedings, administrative proceedings, alternative dispute resolution.
Beyond criminal prosecution, Indonesia offers several enforcement pathways to protect intellectual property rights. These options are uniformly available for Trademarks, Patents, Copyrights, Industrial Designs, Trade Secrets, Layout Designs, and Plant Varieties (PVP), with slight variations depending on the asset class.
- Civil Court Proceedings
Civil litigation is primarily handled by the specialized Commercial Court, which has jurisdiction over most intellectual property disputes. Plant variety disputes are an exception and must be filed in the regular District Court.
- Remedies Available: Rights holders can sue for substantial monetary damages and request an immediate court injunction to halt the infringer’s ongoing commercial operations or seize counterfeit inventory.
- Border Control (Customs): For registered Trademarks and Copyrights, owners can file a customs recordal application with the Directorate General of Customs and Excise. This enables customs officials to temporarily suspend, impound, and block infringing shipments at the border.
- Intellectual Property Office Proceedings
The Directorate General of Intellectual Property (DGIP) hosts internal administrative tribunals to resolve ownership and registration validity issues without entering the court system:
- Opposition and Appeals: During the public publication phase of a pending application (Trademarks, Patents, Industrial Designs, PVP), third parties can file formal oppositions. Adverse examiner decisions can be appealed to the specialized IP Appeal Commission .
- Non-Use and Invalidation Actions: Third parties can petition the DGIP or the Commercial Court to revoke or cancel existing registrations based on non-use (for trademarks) or a lack of absolute novelty (for patents and industrial designs).
- Administrative Proceedings (Digital & Marketplace)
With the massive growth of e-commerce, rapid administrative enforcement is highly effective in Indonesia:
- E-Commerce Take-Downs: Major online marketplaces operate internal intellectual property protection portals. Rights holders can submit registration certificates to immediately remove infringing listings or ban repeat counterfeit vendors.
- Website Blocking: Under joint ministerial regulations, the DGIP collaborates with the Ministry of Communication and Digital Affairs to systematically block entire internet domains or websites that host or facilitate massive copyright piracy.
- Alternative Dispute Resolution (ADR)
Indonesian statutory law heavily prioritizes and mandates the consideration of settlement options before any litigation can proceed:
- Mandatory Court Mediation: Under Supreme Court rules, parties in a civil IP lawsuit must undergo a formal, court-annexed mediation process during the initial trial hearings. Failure to attempt mediation voids the entire proceeding.
- Arbitration: Commercial entities frequently include arbitration clauses in their IP licensing, trade secret, and joint-venture contracts. Disputes can be referred to private tribunals like the Indonesian National Board of Arbitration (BANI) or international arbitration forums to maintain confidentiality and technical specialization.
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What is the length and cost of such procedures?
The timeline and financial commitments required for intellectual property enforcement in Indonesia vary substantially based on the elected legal avenue.
Estimated breakdowns for the length and baseline costs associated with each procedure are:
- Civil Court Proceedings (Commercial Court)
Indonesian IP litigation is characterized by statutorily mandated, accelerated timelines.
- Length: A first-instance trial at the Commercial Court must reach a final verdict within 90 days from the filing date for Trademarks, Copyrights, and Industrial Designs. Patent disputes are granted a statutory window of 180 days. If a party appeals to the Supreme Court (Cassation), a final decision must be rendered within an additional 180 days.
- Cost: Official court filing fees are minor, generally between IDR 1,500,000 to IDR 3,000,000. However, total commercial expenditure—including professional legal representation, formal translations, notary/Apostille fees, and expert witness testimonies—typically ranges from IDR 250,000,000 to IDR 750,000,000+ ($15,000 to $45,000+ USD) depending on case complexity.
- Intellectual Property Office Proceedings (DGIP)
Administrative challenges run concurrently with the standard application or post-grant lifecycles.
- Length: Trademark or Patent oppositions must be lodged strictly within the 2-month public publication window. The subsequent substantive review and final administrative ruling generally take 6 to 12 months. Appeals submitted to the internal IP Appeal Commission take an average of 9 to 15 months to conclude.
- Cost: Official state non-tax revenue (PNBP) fees for filing oppositions or administrative appeals are flat, usually ranging from IDR 1,000,000 to IDR 3,000,000 per application. Total legal costs for drafting arguments and handling documentation range between IDR 20,000,000 to IDR 75,000,000 ($1,200 to $4,500 USD).
- Administrative Proceedings (Marketplaces & Digital)
Digital removal pathways represent the fastest and most cost-efficient enforcement options.
- Length: E-commerce marketplace take-downs are typically executed within 48 hours to 7 business days once valid ownership documentation is verified by the platform’s legal portal. Joint-ministerial website blocking orders for extensive digital piracy take between 2 to 4 weeks to process.
- Cost: Major e-commerce platforms do not charge fees to utilize their IP protection networks. Legal costs to retain a local law firm to monitor portals and submit standard take-down packages generally run between IDR 15,000,000 to IDR 50,000,000 ($900 to $3,000 USD) on a monthly retainer or flat-fee basis.
- Alternative Dispute Resolution (ADR)
- Length: Court-annexed mediation is mandatory at the start of a civil trial and is limited to a maximum of 30 days. Independent commercial arbitration through the Indonesian National Board of Arbitration (BANI) typically resolves within 6 months from the formal establishment of the arbitral tribunal.
- Cost: Court-ordered mediation carries no separate court costs, though parties cover their respective counsel fees. Private BANI arbitration costs are pegged directly to the monetary value of the underlying claim, utilizing a sliding percentage scale that starts from a baseline of IDR 15,000,000 and can scale significantly for high-value contractual disputes.
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Where court action is available, please provide details of which court(s) have jurisdiction, how to start proceedings, the basics of the procedure, the time to trial, the format of the trial, the time to judgment and award of relief and whether any appeal is available.
A. Court Jurisdiction
- The Commercial Court : This specialized division has exclusive jurisdiction over almost all intellectual property disputes in Indonesia, including Trademarks, Patents, Copyrights, Industrial Designs, Trade Secrets, and Layout Designs (DTLST). There are five Commercial Courts in Indonesia, located within the District Courts of Central Jakarta, Surabaya, Semarang, Medan, and Makassar.
- The District Court : Civil disputes regarding Plant Variety Protection (PVP) fall outside the scope of the Commercial Court and must be filed in the regular local District Court.
B. Initiating Proceedings
- E-Court System: Civil lawsuits are formally initiated by filing a statement of claim electronically through the Indonesian Supreme Court’s integrated E-Court platform.
- Filing Requirements: The plaintiff must submit the statement of claim along with supporting documents, including proof of registered IP ownership, identity credentials (KTP/Passport) or company establishment deeds, a signed Power of Attorney (PoA) if utilizing a registered local attorney, and proof of payment for the initial court deposit fee.
C. Core Procedure and Trial Format
- Mandatory Mediation: Upon the first hearing, the panel of judges will order a mandatory court-annexed mediation phase. The parties must attempt to settle the case through a certified mediator within a maximum window of 30 days.
- Written Stage: If mediation fails, the formal trial begins. The format relies heavily on a structured exchange of written pleadings: the Statement of Claim, the Defendant’s Reply, the Plaintiff’s Counter-Reply (Replik), and the Defendant’s Final Rejoinder (Duplik).
- Evidentiary Stage: Following the written pleadings, the parties must present physical evidence, digital forensic findings, expert witness testimonies, and factual witness statements before the three-judge panel.
- Format: Hearings are conducted in person or via hybrid electronic methods (E-Litigasi). Legal arguments and evidence must be submitted in Bahasa Indonesia, with foreign documents requiring sworn translations and Apostille legalization.
D. Time to Trial and Judgment
- Time to Trial: The initial court hearing is generally scheduled within 1 to 2 weeks after the claim is formally registered and served to the defendant.
- Time to Judgment: By law, first-instance IP litigation moves on an accelerated schedule:
- Trademarks, Copyrights, Industrial Designs, Trade Secrets, and DTLST: The panel of judges must issue a final, binding verdict within 90 days from the initial filing date (extendable by an extra 30 days under exceptional circumstances).
- Patents: The statutory deadline to render a final judgment is 180 days from the filing date.
- Plant Varieties (District Court): These follow standard civil procedure, which usually takes 3 to 6 months to reach a verdict.
E. Award of Relief
- Injunctions : Plaintiffs can request preliminary injunctions to halt the defendant’s manufacturing, distribution, or sales operations, or to secure infringing materials before the final judgment.
- Final Remedies: In its final verdict, the court can award substantial monetary damages , order the total destruction of counterfeit inventory, mandate a public apology in national newspapers, and command the immediate revocation or cancellation of the infringing registration.
F. Appeal Avenues
- Direct Appeal to the Supreme Court (Cassation): For decisions issued by the Commercial Court, parties cannot file an intermediate appeal with the High Court. Instead, unsatisfied parties must file a Cassation appeal directly to the Supreme Court of Indonesia within 14 days of the verdict notification.
- Supreme Court Timeline: The Supreme Court is statutorily required to issue a final, definitive ruling on an IP Cassation case within 180 days of receiving the case file.
- District Court Appeals (PVP Exception): For Plant Variety cases tried in a standard District Court, parties must first appeal to the High Court before they can advance to the Supreme Court.
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What customs procedures are available to stop the import and/or export of infringing goods?
Indonesia operates an ex-officio border control system overseen by the Directorate General of Customs and Excise. This framework allows customs inspectors to proactively intercept and temporarily halt shipments containing suspected counterfeit merchandise at ports of entry and exit.
The operational steps and statutory restrictions for this process include:
A. Eligible IP Asset Classes
- Border monitoring and customs seizures are exclusively available for registered Trademarks and recorded Copyrights.
- Other intellectual property assets—including Patents, Trade Secrets, and Industrial Designs—are excluded from the customs recordal database and must be policed using standard court injunctions.
B. The Recordal Mechanism
- Proactive Enrollment: To activate border protection, rights holders or their authorized exclusive licensees must log their registered assets into the electronic customs recordal database.
- Required Specifications: The application requires the official registration certificate from the DGIP, detailed physical profiles of authentic merchandise, names of authorized exporters or supply chain partners, and examples of known counterfeit profiles.
- Protection Period: Approved recordals are valid for a maximum term of one year and can be renewed indefinitely for subsequent one-year terms.
C. Interception and Right Holder Notification
- Temporary Hold: If customs officers detect cargo matching the profile of suspected infringing goods in the database, they will temporarily suspend clearage of the shipment.
- Strict Confirmation Window: Customs immediately notifies the registered right holder or their local proxy electronically. The right holder has a strict timeline of 4 business days to confirm the infringement and initiate formal judicial suspension.
D. Judicial Suspension Order and Financial Collateral
To transform a temporary customs hold into a formal seizure, the right holder must complete two urgent requirements within the 4-day window:
- File for a Court Injunction: Submit an application for a temporary suspension order to the Chief Justice of the competent Commercial Court overseeing the geographical port of entry.
- Post an Operational Bond: Deposit a financial bank guarantee or insurance bond valued at IDR 100 million with the Commercial Court. This bond serves as financial security to indemnify the cargo owner for operational damages if the goods are later determined to be genuine.
E. Joint Inspection and Litigation
- Physical Examination: Once the court issues the suspension order, customs authorizes a joint physical inspection of the cargo, attended by the right holder, a court bailiff, and customs officials to verify the items.
- Substantive Lawsuit Deadline: The right holder must file a full civil infringement lawsuit with the Commercial Court within 10 business days (extendable by an additional 10 business days under specific conditions) from the date of the joint inspection.
- Final Destruction: If the court confirms the goods are counterfeit, the final verdict will mandate the complete destruction of the cargo at the importer’s expense or order its permanent forfeiture to the state.
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Are any non-court enforcement options or dispute resolution mechanisms mandatory in respect of intellectual property disputes in any circumstances? If so, please provide details.
Yes, alternative dispute resolution (ADR)—specifically mediation—is statutorily mandatory in Indonesia under two distinct legal circumstances. Bypassing these non-court channels when required by law will invalidate or stall the enforcement action.
The two scenarios where mediation is strictly compulsory are:
- Court-Annexed Civil Litigation Mediation
When a rights holder initiates a civil infringement or invalidation action within the Commercial Court, they are legally barred from proceeding directly to a trial on the merits.
- The Mandate: Under Supreme Court Regulation (PERMA) No. 1 of 2016, all civil lawsuits filed in the Indonesian court system must undergo a mandatory, court-annexed mediation phase during the initial hearing stage.
- The Procedure: The panel of judges will formally pause the litigation and appoint a certified mediator (either a neutral judge or a registered private IP mediator). The disputing parties are given a strict statutory window of 30 business days to negotiate an amicable settlement.
- Consequences of Non-Compliance: If the parties fail to participate in mediation or if the plaintiff demonstrates bad faith by skipping sessions, the presiding judges will dismiss the lawsuit as inadmissible (niet ontvankelijk verklaard / NO), requiring the plaintiff to refile the entire claim.
- Pre-Prosecution Criminal Mediation
If a rights holder chooses to pursue criminal sanctions instead of civil remedies, they face mandatory alternative dispute requirements before a criminal trial can commence.
- The Mandate: Under the statutory provisions of the Indonesian Copyright Law (Law No. 28 of 2014) and Patent Law (Law No. 13 of 2016), parties must attempt to settle their dispute through mediation before criminal charges can be advanced to a full trial.
- The Procedure: When a formal criminal complaint is lodged with the Civil Servant Investigators (PPNS) at the DGIP or the National Police, investigators are legally bound to act as facilitators and convene structured mediation hearings between the complainant and the accused infringer.
- Consequences of Non-Compliance: Law enforcement authorities cannot transfer the criminal case file to the public prosecutor unless they attach official state documentation certifying that a formal mediation process was attempted and failed to yield a settlement.
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What options are available to settle intellectual property disputes in your jurisdiction?
In Indonesia, intellectual property disputes can be settled through various private, judicial, and administrative avenues. These mechanisms are designed to resolve conflicts efficiently, either outside the court system or during active litigation.
The primary settlement options available include:
- Contractual Mediation via the DGIP
Parties can voluntarily request formal mediation directly through the Directorate General of Intellectual Property (DGIP) without filing a lawsuit first.
- Mechanism: Under Ministry of Law and Human Rights Regulation No. 1 of 2023, the DGIP provides certified intellectual property mediators to facilitate settlement discussions.
- The Outcome: If successful, the parties execute a formal Settlement Agreement. This agreement is legally binding and can be registered with the District Court to ensure it has immediate executive power, similar to a court judgment.
- Private Arbitration
Commercial entities frequently utilize private arbitration to resolve complex intellectual property disputes, particularly those arising from licensing, franchising, or joint-venture agreements.
- Mechanism: Disputes are referred to independent arbitral tribunals, most commonly the Indonesian National Board of Arbitration (BANI) or international bodies like the Singapore International Arbitration Centre (SIAC).
- Key Benefits: Arbitration offers complete confidentiality, allowing businesses to protect sensitive trade secrets or technical know-how from public court records. Additionally, it allows parties to select arbitrators with specialized technical or legal expertise in IP assets.
- Court-Annexed Mediation
Even after formal civil litigation has been initiated in the Commercial Court, the legal framework provides structured opportunities to settle before a final verdict is delivered.
- Mandatory Initial Phase: As required by Supreme Court rules, every civil IP lawsuit must halt for a mandatory 30-day mediation window at the start of the trial.
- Settlement Deed : If the parties reach a compromise during this phase, the mediator drafts a formal Settlement Deed. This deed is signed by the parties and ratified by the panel of judges. It completely concludes the lawsuit, carries the same legal weight as a final court verdict, and cannot be appealed.
- Private Settlement and Mutual Releases
Parties can opt for a purely private commercial settlement at any stage of a dispute, including prior to taking any formal legal action.
- Mechanism: The parties draft and sign a private Settlement Agreement and Mutual Release contract. This typically involves the infringer agreeing to immediately cease all unauthorized use of the IP, destroy remaining counterfeit inventory, or pay a negotiated compensation fee.
- Licensing Transition: In many commercial disputes, private settlements result in the infringer transitioning into a legitimate, paying licensee under a newly executed and recorded IP Licensing Agreement.
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What is required to establish infringement of each of the intellectual property rights described in section A? What evidence is necessary in this context?
To establish intellectual property infringement in Indonesia, the plaintiff must first prove active, valid registration or subsistence of rights, followed by evidence of unauthorized commercial use by the defendant.
The statutory thresholds and evidentiary requirements across each asset class are:
A. Trademarks
- Infringement Threshold: The plaintiff must demonstrate that the defendant utilized a mark on identical or similar goods or services without authorization. The mark must either be identical or confusingly similar to the registered trademark.
- Essential Evidence: Certified copy of the trademark registration certificate from the DGIP, physical or digital samples of the infringing products showing the unauthorized mark, purchase receipts or invoices establishing commercial trade, and market survey reports or consumer testimonials to substantiate public confusion.
B. Patents
- Infringement Threshold: The plaintiff must show that the defendant has unauthorizedly manufactured, imported, sold, or utilized a product or process that encompasses all the essential technical elements defined within the independent claims of a granted patent.
- Essential Evidence: Certified copy of the granted patent certificate along with the complete patent specifications and claims. A detailed technical comparison matrix prepared by a certified independent patent expert or laboratory, analyzing the defendant’s product/process against the patented claims.
C. Copyrights
- Infringement Threshold: The plaintiff must establish ownership over an original work and prove that the defendant reproduced, distributed, adapted, or publicly performed the work without a valid license.
- Essential Evidence: Official copyright recordal certificate or alternative proof of first publication/creation (to establish authorship), physical or digital copies of both the genuine work and the unauthorized duplicate, and a comparative analysis highlighting substantial similarity (substansial similarity) in expression.
D. Industrial Designs
- Infringement Threshold: The plaintiff must prove that the defendant has unauthorizedly manufactured, imported, or sold a product that incorporates a visual aesthetic, shape, configuration, or ornamentation identical or substantially similar to a registered industrial design.
- Essential Evidence: Certified copy of the industrial design registration certificate containing the official visual disclosures. Side-by-side photographic or 3D digital comparisons demonstrating visual identity or substantial aesthetic similarity from the perspective of an ordinary consumer.
E. Topography / Layout Designs of Integrated Circuits (DTLST)
- Infringement Threshold: The plaintiff must prove that the defendant has copied or commercially exploited a protected three-dimensional layout elements arrangement of an integrated circuit without authorization.
- Essential Evidence: Certified copy of the DTLST registration certificate, schematic blueprints of the layout design, and forensic engineering or microchip decapsulation reports proving that the internal circuit architecture matches the registered topography design.
F. Trade Secrets
- Infringement Threshold: The plaintiff must prove that the technical or business information possessed commercial value and was subject to active, reasonable measures to maintain its secrecy, which the defendant breached, misappropriated, or disclosed without authorization.
- Essential Evidence: Signed Non-Disclosure Agreements (NDAs), company IT access logs or physical security records proving a breach of security, data migration trail logs, and internal company policies showing active steps taken to protect the information.
G. Plant Varieties (PVP)
- Infringement Threshold: The plaintiff must demonstrate that the defendant propagated, harvested, commercialized, or distributed propagating material of a protected plant variety without a valid authorization from the PVP holder.
- Essential Evidence: Certified copy of the PVP certificate issued by the Ministry of Agriculture, physical samples of the propagating material or crop, and independent DNA profiling or morphological testing reports from a certified state agricultural laboratory confirming genetic identity.
H. Geographical Indications (GIs)
- Infringement Threshold: The plaintiff must prove that the defendant used a protected geographical indication on products that did not originate from the specific geographical region, or did not meet the mandatory quality standards outlined in the official GI book of specifications.
- Essential Evidence: Official GI registration certificate and the approved Book of Specifications, product packaging showing the deceptive regional name, supply chain or logistical tracing documents proving production outside the designated region, and chemical or sensory laboratory analysis indicating sub-standard quality.
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How does the court acquire any necessary information (fact or technical) and in what circumstances does it do so? In particular a) Is there a technical judge, a judge with technical experience, a court appointed expert, an expert agreed by the parties, and/or parties’ expert witness evidence? b) What mechanisms are available for compelling the obtaining and protecting of evidence? Is disclosure or discovery available?
A. Is there a technical judge, a judge with technical experience, a court appointed expert, an expert agreed by the parties, and/or parties’ expert witness evidence?
The Indonesian court system relies on a passive, adversarial approach where the burden of procuring and presenting factual or technical information rests primarily on the disputing parties. Under the Indonesian Civil Procedure Code (HIR/RBg), judges evaluate the case based strictly on the formal evidence submitted during the trial.
The specific mechanisms regarding judicial expertise and expert evidence are structured as follows:
Technical Judges and Judges with Technical Experience
- Commercial Court Judges: There are no specialized “technical judges” or separate technical courts in Indonesia. Intellectual property cases are heard by a panel of three career judges within the Commercial Court.
- Certification Requirements: These career judges do not necessarily possess backgrounds in science, engineering, or technology. However, they must undergo specialized training and obtain an Intellectual Property Judicial Certification from the Supreme Court of Indonesia before they are eligible to preside over IP disputes.
- Ad-Hoc Judges: While Indonesian IP laws theoretically permit the appointment of non-career, ad-hoc specialized judges to panels, this mechanism is rarely utilized in practice due to administrative constraints.
Parties’ Expert Witness Evidence
- Primary Pathway: The most common method for the court to acquire technical information is through expert witnesses presented directly by the parties.
- Procedure: Both the plaintiff and the defendant have the right to bring independent experts (e.g., patent attorneys, academics, software developers, or laboratory scientists) to court. The expert submits a formal written opinion and delivers live oral testimony under oath during the evidentiary hearings.
- Judicial Discretion: The court is not legally bound by the conclusions of a party-appointed expert. The judges weigh the expert’s testimony alongside all other physical evidence to form their final legal assessment.
Court-Appointed Experts
- Circumstances: If the expert testimonies presented by the plaintiff and defendant are completely contradictory, or if the case involves highly complex technological parameters (such as pharmaceutical chemical structures or semiconductor layouts), the panel of judges can independently appoint a neutral third-party expert.
- Execution: The court can formally request technical opinions or investigative assistance from relevant state institutions, such as the Center for Plant Variety Protection (for plant varieties), the DGIP’s internal patent examiners, or accredited state university laboratories. The fees for a court-appointed expert are typically split between the parties or advanced by the party requesting the examination.
Experts Agreed by the Parties
- Circumstances: While the Civil Procedure Code permits parties to mutually agree on a single, shared neutral expert to conduct a technical evaluation, this mechanism is rarely utilized in active, adversarial litigation.
- Application: This approach is more commonly observed within Alternative Dispute Resolution (ADR) or private arbitration frameworks (such as BANI), where parties mutually select a technically specialized arbitrator or panel to resolve their dispute outside the state court system.
B. What mechanisms are available for compelling the obtaining and protecting of evidence? Is disclosure or discovery available?
No Discovery or Disclosure Mechanisms
Indonesia operates under a civil law legal system, which does not recognize the common law concepts of pretrial discovery or disclosure.
- The Rule: Litigants cannot compel an opposing party to produce internal documents, correspondence, data logs, or source code.
- The Burden: Each party is entirely responsible for collecting and presenting their own evidence. A plaintiff must file a lawsuit with their evidence already fully prepared.
Available Compelling and Protective Mechanisms
While generic discovery is unavailable, the Indonesian Civil Procedure Code (HIR/RBg) and specialized intellectual property laws provide specific judicial tools to secure and preserve critical evidence under narrow circumstances:
- Judicial Inspections :
- Circumstances: If a dispute involves physical infrastructure, heavy manufacturing machinery, or spatial layouts that cannot be brought into a courtroom, a party can petition the panel of judges to conduct an on-site inspection.
- Mechanism: The panel of judges and a court clerk will visit the defendant’s factory, warehouse, or facility to personally observe, document, and verify the physical facts under review.
- Court-Ordered Preliminary Injunctions (Provisional Measures):
- Circumstances: Rights holders can request urgent interim orders from the Commercial Court if there is a verified risk that the infringer will destroy, alter, or hide essential evidence before a final verdict is reached.
- Mechanism: A judge can order the temporary seizure or freezing of suspected counterfeit products, raw manufacturing materials, and transactional documentation to preserve them as formal trial evidence.
- Security Seizures :
- Circumstances: To prevent a defendant from transferring, hiding, or dissipating assets during active litigation, a plaintiff can request a security seizure.
- Mechanism: Upon proving a credible risk of asset concealment, the court can issue a formal warrant to freeze the defendant’s movable or immovable assets (including inventory and bank accounts) to secure final enforcement relief.
- Subpoena Power for Public Authorities:
- Circumstances: While a party cannot compel production from private adversaries, the panel of judges holds the authority to request official information or authenticated documentation from state ministries or public bodies.
- Mechanism: A litigant can petition the court to issue a formal request to entities like the DGIP, the Ministry of Agriculture, or regulatory agencies to provide official registry certificates, field testing data, or network data logs essential to the dispute.
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How is information and evidence submitted to the court scrutinised? For example, is cross-examination available and if so, how frequently is it employed in practice?
In Indonesian civil procedure, the scrutiny of evidence is heavily focused on documentary authenticity, though oral testimonies are evaluated through a structured examination process. The three-judge panel holds ultimate authority to assess the weight and relevance of all submissions.
The examination and verification of evidence follow these specific protocols:
1. Formal Document Authentication
- The Rule: Because Indonesia is a civil law country, documentary evidence holds the highest evidentiary weight. Every document submitted must undergo a strict formal verification process.
- The Procedure: Litigants must match all photocopied evidence against their original counterparts in front of the panel of judges during the evidentiary hearings.
- Stamp Duty and Legalization: To be admissible, documents must bear the mandatory Indonesian stamp duty (Nazegeling processed through a local post office). Any document originating from outside Indonesia must be notarized and Apostilled or legalized by an Indonesian embassy, accompanied by a sworn translation into Bahasa Indonesia. Unlegalized foreign documents are systematically rejected.
2. Availability and Practice of Cross-Examination
- The Rule: True common-law style cross-examination is not available in Indonesian civil proceedings. Litigants do not have the right to directly confront, aggressively question, or disrupt the opposing party’s witnesses or experts.
- The Procedure: Examination follows an indirect, inquisitorial format. The party presenting the witness conducts an initial direct examination. The opposing counsel is then permitted to ask follow-up questions, but all questions must be directed through and approved by the presiding judge. If a question is deemed hostile, leading, or irrelevant, the judge will block it.
- Frequency in Practice: This structured questioning of witnesses and experts occurs in every case where oral testimony is presented. However, because judges control the flow and tone of the inquiries, the process is significantly more formal, polite, and less aggressive than common-law cross-examinations.
3. Judicial Assessment of Technical Evidence
- The Rule: Judges evaluate all submitted information under the principle of judicial discretion.
- The Weight: Career judges heavily rely on official state documentation (such as certificates from the DGIP or Ministry of Agriculture) or reports from accredited state laboratories. When evaluating conflicting party-appointed experts, judges routinely favor the expert whose written brief is most closely aligned with verifiable physical evidence or recognized academic standards.
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What defences to infringement are available?
In Indonesia, a defendant facing an intellectual property infringement claim can assert several statutory and procedural defenses. The availability of these defenses varies depending on the specific asset class involved:
- General and Procedural Defences (All IP Asset Classes)
- Lack of Standing (Persona Standi in Judicio): The defendant can argue that the plaintiff is not the legitimate owner, a properly recorded assignee, or an authorized exclusive licensee, and therefore lacks the legal right to file the lawsuit.
- Prior Private Settlement: The defendant can produce a valid, signed private Settlement Agreement or Mutual Release contract demonstrating that the dispute was already resolved out of court.
- Statute of Limitations (Daluwarsa): For criminal claims, the defendant can argue that the statutory time limit to initiate prosecution has expired.
- Asset-Specific Defences
- Trademarks:
– Prior Use: The defendant can prove they utilized the mark in good faith within Indonesia before the plaintiff filed their registration application.
– Non-Use Cancellation Counterclaim: The defendant can file a counterclaim demonstrating that the plaintiff has not commercially utilized the registered trademark for three consecutive years, rendering the registration eligible for cancellation.
– Different Goods/Services: Demonstrating that the mark is used on completely unrelated classes of goods or services, precluding any risk of consumer confusion.
- Patents:
– Prior Use: A defendant can claim immunity from infringement if they were already independently exploiting the identical invention, or had made concrete preparations to do so, in Indonesia before the plaintiff’s patent application filing date.
– Patent Invalidation Counterclaim: The defendant can file a concurrent action to invalidate the underlying patent by producing prior art or evidence proving a lack of absolute novelty, inventive step, or industrial applicability.
– Regulatory / Bolar Exception: Utilizing the patented invention solely for research, education, or to compile data for pharmaceutical regulatory approvals prior to the patent’s expiration.
- Copyrights:
– Fair Use / Statutory Exemptions: Defending the unauthorized use if it was executed strictly for non-commercial education, private research, news reporting, or criticism, provided the source is fully attributed and it does not harm the author’s normal economic exploitation.
– Independent Creation: Proving that the work was created independently without any access to or copying of the plaintiff’s copyrighted material.
- Industrial Designs & Topography (DTLST):
– Parallel Prior Use: Proving that the defendant was already commercially manufacturing or utilizing the design or layout independently prior to the plaintiff’s registration application date.
– Lack of Novelty Counterclaim: Presenting evidence that the design or circuit layout was already disclosed to the global public before the priority or filing date, invalidating its registered status.
- Trade Secrets:
– Independent Development: Proving that the technical parameters or business methods were discovered or built entirely through independent engineering or separate research.
– Reverse Engineering: Demonstrating that the technical information was acquired through the lawful analysis, disassembly, or testing of a commercially available product.
– Failure to Maintain Confidentiality: Proving that the plaintiff failed to implement reasonable security measures, causing the information to lose its protected secret status before the alleged misappropriation.
- Plant Varieties (PVP):
– Farmer’s Exemption: Utilizing and propagating a protected plant variety strictly for personal, non-commercial farming activities or food security.
– Breeder’s Exemption: Utilizing the protected variety as a baseline parent line for the independent breeding and development of a brand-new, distinct plant variety.
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Who can challenge each of the intellectual property rights described in section A?
In Indonesia, the legal standing (persona standi in judicio) required to challenge an intellectual property registration varies between open public mechanisms and restricted private actions, depending on the asset class and the stage of the challenge.
The authorized challengers per asset type are:
- Trademarks
- During the Publication Phase (Pre-grant): Any individual or corporate entity has the legal right to file a formal opposition with the DGIP if they believe the applied mark violates absolute or relative grounds for registration.
- Post-Registration Cancellation or Invalidation: Action must be filed in the Commercial Court. Standing is restricted to interested parties, which Indonesian jurisprudence defines as prior registered trademark owners, good-faith prior users, or entities whose commercial activities are directly impeded by the conflicting registration.
- Patents
- During the Publication Phase (Pre-grant): Any person or third party may submit written oppositions or technical prior art to the DGIP to contest the patentability of a pending application
- Post-Grant Invalidation: An invalidation lawsuit in the Commercial Court can be initiated by any interested third party (such as a competitor seeking freedom to operate) on the grounds of a lack of novelty or inventive step. Additionally, public prosecutors or third parties acting specifically in the national interest hold standing to challenge and revoke patents that threaten public order or safety.
- Copyrights
- Post-Recordal Cancellation: Because copyright protection subsists automatically upon creation, the DGIP registry acts as a recordal database rather than a granting body. A lawsuit to cancel an official copyright recordal certificate in the Commercial Court can only be filed by an interested party, typically a person claiming to be the true original author or the rightful owner via legal succession.
- Industrial Designs & Layout Designs (DTLST)
- During the Publication Phase (Pre-grant): Any interested party can file an administrative objection with the DGIP contesting the novelty of the design or integrated circuit layout.
- Post-Registration Invalidation: An invalidation lawsuit in the Commercial Court can be initiated by any interested party who can produce evidence that the configuration lacked novelty at its global filing or priority date.
- Trade Secrets
- No Registration Challenge: Because trade secrets are inherently unregistered, there is no public administrative registry to challenge.
- Ownership and Misappropriation Disputes: Only the alleged true owner, contractual licensor, or joint-venture partner has the standing to initiate a civil lawsuit regarding the ownership, breach, or unauthorized disclosure of the secret know-how.
- Plant Varieties (PVP)
- During the Publication Phase (Pre-grant): Any individual or legal entity can file a motivated opposition with the PVP Office under the Ministry of Agriculture Ukraine: Intellectual Property – Country Comparative Guides.
- Post-Grant Revocation: An invalidation action in the District Court can be brought by any interested third party (such as competing agricultural breeders) or by the government if the variety fails to maintain its distinctness, uniformity, or stability metrics.
- Geographical Indications (GIs)
- Pre-grant and Post-grant Challenges: Challenges are highly restricted. Standing is limited to recognized collective groups, such as regional GI protection cooperatives, consumer protection organizations, or local government bodies representing an affected geographical community. Private individual commercial corporations lack independent standing to challenge a collective GI registry unless they are acting as an official representative of an authorized regional group.
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When may a challenge to these intellectual property rights be made (e.g. during any registration process or at any time during the subsistence of the right)?
In Indonesia, intellectual property rights can be contested either during the administrative application process (Pre-grant/Pre-registration) or after the rights have been officially granted (Post-grant/Post-registration), subject to specific statutory windows.
The permissible timing for challenges across each asset class includes:
- Trademarks
- During the Registration Process: An administrative opposition must be filed within the strict 2-month public publication window that occurs prior to substantive examination.
- Post-Registration Invalidation: An invalidation lawsuit based on relative grounds (such as similarity to a prior registered mark) must be filed in the Commercial Court within 5 years from the trademark’s official registration date.
- At Any Time: Invalidation lawsuits based on absolute grounds (such as bad-faith applications, conflict with public order, or deceptive marks) or non-use cancellation actions can be initiated at any point during the entire subsistence of the trademark right.
- Patents
- During the Registration Process: Third-party oppositions and prior art submissions can be lodged with the DGIP within the 3-month public publication window for standard patents, or the 2-month window for simple patents.
- Post-Grant Invalidation: An invalidation lawsuit in the Commercial Court can be initiated at any time during the entire 20-year subsistence period for standard patents, or the 10-year period for simple patents.
- Copyrights
- During the Recordal Process: There is no public publication or formal opposition phase during the voluntary copyright recordal process.
- During the Subsistence of the Right: A lawsuit to cancel an official copyright recordal certificate in the Commercial Court can be filed at any time during the lifespan of the copyright.
- Industrial Designs & Layout Designs (DTLST)
- During the Registration Process: Administrative objections against a pending application must be filed within the 3-month public publication window for Industrial Designs, or the 3-month window for Layout Designs.
- Post-Registration Invalidation: An invalidation lawsuit challenging the novelty of a registered design or layout can be filed in the Commercial Court at any time during its subsistence (10 years for both Industrial Designs and DTLST).
- Trade Secrets
- At Any Time: Because trade secrets are inherently unregistered and subsist automatically as long as confidentiality is maintained, a legal challenge regarding ownership or breach of secrecy can be initiated at any time within the standard civil statute of limitations, typically triggered upon the discovery of the breach.
- Plant Varieties (PVP)
- During the Registration Process: Written objections contesting an application must be submitted to the PVP Office within the 6-month public publication window.
- Post-Grant Revocation: An invalidation or revocation petition can be brought at any time during the subsistence of the right (20 years for annual plants; 25 years for perennial plants).
- Geographical Indications (GIs)
- During the Registration Process: Objections against a pending GI application must be filed within the 2-month public publication window.
- Post-Registration Invalidation: A challenge or invalidation lawsuit against a registered GI can be initiated at any time during its subsistence, provided the underlying geographic characteristics or reputation no longer exist.
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Briefly, what is the forum and the procedure for challenging each of these intellectual property rights and what are the grounds for a finding of invalidity of each of these intellectual property rights?
. Trademarks
- Forum: The Directorate General of Intellectual Property (DGIP) for pre-grant oppositions; the Commercial Court for post-registration invalidation or non-use cancellation.
- Procedure: Pre-grant challenges are submitted electronically as written oppositions during the publication window. Post-registration challenges require filing a formal civil lawsuit. Commercial Court decisions can be appealed directly to the Supreme Court via Cassation.
- Grounds for Invalidity:
– Relative Grounds: Identity or confusing similarity with a prior registered trademark, a well-known mark, or a registered geographical indication for similar goods or services.
– Absolute Grounds: Registration filed in bad faith, clashing with state ideology, morality, or public order, or consisting of generic terms or public domain symbols.
– Non-Use: The trademark has not been commercially exploited for three consecutive years from the registration date.
- Patents
- Forum: The DGIP for pre-grant oppositions; the Commercial Court for post-grant invalidation. Adverse examiner decisions during prosecution can be challenged before the internal Patent Appeal Commission.
- Procedure: Pre-grant challenges involve submitting prior art or arguments to the examiner. Post-grant challenges require initiating a formal invalidation trial in the Commercial Court, with a direct appeal avenue to the Supreme Court.
- Grounds for Invalidity:
– Lack of absolute global novelty at the time of filing or priority date.
– Lack of an inventive step (the invention is obvious to a person skilled in the art).
– Lack of industrial applicability (cannot be manufactured or used in any industry).
– The invention falls under non-patentable subject matter (e.g., biological processes, mathematical methods, or software per se).
- Copyrights
- Forum: The Commercial Court. There is no administrative opposition forum at the DGIP due to the automatic subsistence of copyright.
- Procedure: Filing a formal civil lawsuit to cancel an existing copyright recordal certificate and establish legitimate authorship or ownership.
- Grounds for Invalidity:
– The recorded work lacks original expression or is a direct copy of a pre-existing creation.
– The person who recorded the work is not the true author or did not acquire the economic rights via valid legal succession or contract.
– The work violates public order, morality, or statutory regulations.
- Industrial Designs
- Forum: The DGIP for pre-grant objections; the Commercial Court for post-registration invalidation.
- Procedure: Filing a written objection during the publication phase, or initiating a formal civil lawsuit to invalidate a registered design.
- Grounds for Invalidity:
– Lack of novelty (the design’s configuration, shape, or aesthetic components were disclosed to the global public prior to the Indonesian filing or priority date).
– The design conflicts with prevailing laws, public order, or morality.
- Topography / Layout Designs of Integrated Circuits (DTLST)
- Forum: The DGIP for pre-registration objections; the Commercial Court for post-registration invalidation.
- Procedure: Lodging an administrative objection during the publication window, or filing a formal invalidation lawsuit within the Commercial Court system.
- Grounds for Invalidity:
– Lack of originality (the layout design was not the result of the creator’s independent intellectual effort, or was common among layout designers at the time of its creation).
– The layout design violates public order or morality.
- Trade Secrets
- Forum: The Commercial Court or private Arbitration (such as BANI). There is no administrative invalidation forum because trade secrets are inherently unregistered.
- Procedure: Filing a civil breach of contract or misappropriation lawsuit to contest rightful ownership, unlawful access, or unauthorized disclosure.
- Grounds for Finding Lack of Protection:
– The information lost its protected status because it became public knowledge.
– The information lacks commercial or economic value.
– The owner failed to take reasonable and active security measures to preserve its confidentiality.
- Plant Varieties (PVP)
- Forum: The PVP Office under the Ministry of Agriculture for pre-grant oppositions; the local regular District Court for post-grant invalidation.
- Procedure: Submitting a written objection to the Ministry of Agriculture, or filing a standard civil lawsuit to revoke a granted PVP certificate.
- Grounds for Invalidity:
– The plant variety lacks novelty, distinctness, uniformity, or stability metrics.
– The PVP certificate holder is not the true plant breeder or their legitimate legal successor.
- Geographical Indications (GIs)
- Forum: The DGIP for pre-grant objections; the Commercial Court for post-registration invalidation.
- Procedure: Submitting administrative objections to the GI Experts Team during the publication phase, or filing a formal lawsuit in the Commercial Court.
- Grounds for Invalidity:
– The natural or human factors unique to the designated geographic area no longer exist, causing the product to lose its specific quality or reputation.
– The registration conflicts with public order, morality, or misleads the public regarding the true origin of the goods.
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Are there any other methods to remove or limit the effect of any of the intellectual property rights described in section A, for example, declaratory relief or licences of right?
Yes, Indonesian statutory law provides specific administrative and non-voluntary mechanisms to limit or override the exclusive monopolies of intellectual property rights, primarily to safeguard public interest and ensure market utility. However, traditional common-law remedies like standalone declaratory actions are unavailable.
The operational methods to limit or bypass exclusive IP rights in Indonesia include:
- Compulsory Licensing
Instead of a voluntary “licence of right,” Indonesia implements a strict Compulsory Licensing framework to prevent the abuse of monopolistic rights, particularly within the patent and plant variety regimes.
- Patents: Under the Patent Law, a third party can petition the DGIP for a compulsory license if the patent holder fails to manufacture the product or implement the patented process in Indonesia within 36 months of being granted, or if the patent is used to create an unfair monopoly.
- Plant Varieties: Compulsory licensing can be requested from the Ministry of Agriculture if a protected variety is not actively commercialized within Indonesia or fails to satisfy domestic food security demands.
- Government Exploitation: The state can issue a decree to bypass patent exclusivity entirely without the owner’s consent for national security interests or public health emergencies (e.g., producing generic pharmaceutical drugs).
- Declaratory Relief Inavailability
- No Declaratory Judgment on Non-Infringement: The Indonesian civil procedure system does not recognize a preemptive declaratory judgment action (declaratory relief) for non-infringement. An alleged infringer cannot proactively file a lawsuit in the Commercial Court seeking a formal declaration that their current operational processes or designs do not infringe on a competitor’s active patent or trademark.
- Alternative Pathway: To clear a potential market barrier, a competitor cannot seek declaration; they must instead file a direct Invalidation or Cancellation Lawsuit against the underlying IP registration using established statutory grounds.
- Administrative Non-Use Cancellation
For certain registerable assets, the government limits the longevity of a right if the asset is left commercially idle, preventing “trademark parking” or “squatting”.
- Trademarks: A third party can petition to remove or limit a trademark’s exclusivity by initiating a non-use cancellation lawsuit if the mark has not been actively traded in the Indonesian market for three consecutive years.
- Patents: The DGIP can administratively cancel a patent or render it legally void if the patent holder fails to pay the mandatory annual maintenance fees (annuities) within the statutory deadlines.
- Parallel Importation (Exhaustion of Rights)
- The Concept: Indonesia adopts the principle of International Exhaustion of Rights for specific assets like trademarks. Once a genuine, authorized trademark product is legitimately placed into commerce anywhere in the world by the right holder or their licensee, the owner’s distribution rights are exhausted.
- The Effect: This exhaustion limits the trademark owner’s ability to restrict or block third parties from parallel importing those genuine goods into Indonesia, provided the items have not been altered or degraded.
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What remedies (both interim and final) are available for infringement of each of the intellectual property rights described in section A?
The statutory remedies available for intellectual property infringement are categorized into urgent interim reliefs and final judicial remedies. These remedies are applied across all IP asset classes, with minor distinctions based on the specific regime.
- Interim Remedies (Provisional Measures)
Interim remedies are urgent, temporary measures granted by a judge before a final decision on the merits is reached. They are designed to prevent imminent harm and secure evidence.
- Preliminary Injunctions : A rights holder can petition the Commercial Court for an interim injunction to immediately halt the defendant’s unauthorized manufacturing, importing, distribution, or marketing activities.
- Evidence Preservation Orders: Under the provisional measures framework, judges can order the temporary seizure or freezing of suspected counterfeit inventory, raw production supplies, and related transactional documentation to ensure they are not altered, hidden, or destroyed before trial.
- Security Seizures : Litigants can secure an order to freeze the defendant’s movable and immovable commercial assets (such as manufacturing equipment or company bank accounts). This ensures that financial assets remain available to cover final damages awards.
- Customs Suspension Notice: For Trademarks and Copyrights enrolled in the border control database, rights holders can secure a temporary 4-day customs suspension hold on suspected shipments, which can be extended via a court injunction.
- Final Remedies
Final remedies are awarded by the panel of judges in the final verdict after a full evaluation of the merits of the case.
- Monetary Damages : The court can order the infringer to pay substantial financial compensation to the right holder. This includes compensation for actual material losses suffered and lost commercial profits resulting directly from the unauthorized exploitation.
- Cease and Desist Orders: A permanent judicial injunction commanding the infringer to immediately and indefinitely stop all unauthorized use, reproduction, distribution, or commercialization of the protected asset.
- Destruction of Infringing Goods: The final judgment routinely mandates the total physical destruction of all seized counterfeit inventory, pirated media, or infringing materials at the infringer’s sole expense, ensuring the items cannot re-enter commerce.
- Forfeiture of Production Equipment: In severe commercial piracy cases, the court can order that the heavy machinery, specialized molds, or digital apparatus used to manufacture the counterfeit goods be permanently confiscated or destroyed.
- Public Apology Publication: Courts can compel the losing defendant to publish a formal, public apology admitting to the infringement in prominent national newspapers, helping to restore the right holder’s market reputation.
- Revocation or Cancellation of Registrations: If the infringement stemmed from a conflicting junior registration (such as a later-filed trademark or patent), the final award will order the DGIP or Ministry of Agriculture to completely cancel or revoke the infringer’s registration from the state database.
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What are the costs of enforcement proceedings and is any kind of costs recovery available for successful parties? Is there a procedural mechanism enabling or requiring security for costs?
A. Costs of Enforcement Proceedings
The financial expenses required for intellectual property enforcement in Indonesia vary based on the chosen legal avenue:
- Civil Litigation (Commercial Court): Official court filing deposits are low, typically ranging from IDR 1,500,000 to IDR 3,000,000. However, the primary expenses are professional legal fees, notary/Apostille fees for foreign documents, sworn translations, independent laboratory testing, and expert witness honorariums. Total litigation costs generally range between IDR 250,000,000 to IDR 750,000,000+ ($15,000 to $45,000+ USD) depending on case complexity.
- Criminal Enforcement: Filing a criminal complaint with the National Police or DGIP Civil Servant Investigators (PPNS) does not attract official state fees. However, the right holder incurs substantial costs in conducting initial market monitoring, procuring authentic samples, and preparing the comprehensive evidentiary package required by investigators.
- Administrative E-Commerce Actions: Major online marketplace take-downs are executed via internal portals at no cost. Retaining a local law firm to handle routine monitoring and listing removals usually costs between IDR 15,000,000 to IDR 50,000,000 ($900 to $3,000 USD) on a monthly flat-fee basis.
B. Availability of Costs Recovery
- Court Fees Only: Under the Indonesian Civil Procedure Code (HIR/RBg), the losing party is routinely ordered to pay the official court costs. However, this recovery is strictly limited to the nominal court filing deposits mentioned above.
- No Professional Fee Recovery: Indonesia does not practice the “loser pays” principle for general legal expenses. A successful plaintiff cannot recover their actual attorney fees, investigator costs, translation expenses, or expert witness fees from the defeated defendant.
- Damages Inclusions Alternative: To mitigate this limitation, successful plaintiffs frequently structure their claim for civil monetary damages to include their actual operational and material losses suffered due to the infringement. The court, however, exercises full discretion over whether to grant these requested amounts.
C. Security for Costs (Operational Bond Mechanisms) [8]
- General Litigation: Indonesian civil procedure does not have a general mechanism allowing a defendant to demand that a plaintiff post security for costs to cover legal fees in case the lawsuit fails.
- Border Controls and Injunction Exceptions: A robust security for costs mechanism is strictly mandatory when a rights holder requests a preliminary injunction or a customs border suspension.
- The Operational Bond: To execute an interim cargo hold or factory shutdown, the applicant must deposit a bank guarantee or insurance bond valued at IDR 100 million ($6,000 USD) with the Commercial Court. This deposit serves as mandatory financial security to indemnify the defendant or cargo owner for immediate operational losses if the case is later dismissed on the merits
Indonesia: Intellectual Property
This country-specific Q&A provides an overview of Intellectual Property laws and regulations applicable in Indonesia.
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What different types of intellectual property rights exist to protect: (a) Inventions (e.g. patents, supplementary protection certificates, rights in trade secrets, confidential information and/or know-how); (b) Brands (e.g. trade marks, cause of action in passing off, rights to prevent unfair competition, association marks, certification marks, hallmarks, designations of origin, geographical indications, traditional speciality guarantees); (c) Other creations, technology and proprietary interests (e.g. copyright, design rights, semiconductor topography rights, plant varieties, database rights, rights in trade secrets, confidential information and/or know-how).
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What is the duration of each of these intellectual property rights? What procedures exist to extend the life of registered rights in appropriate circumstances?
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Who is the first owner of each of these intellectual property rights and is this different for rights created in the course of employment or under a commission?
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Which of the intellectual property rights described in section A are registered rights?
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Who can apply for registration of these intellectual property rights and, briefly, what is the procedure for registration?
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How long does the registration procedure usually take?
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Do third parties have the right to take part in or comment on the registration process?
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What (if any) steps can the applicant take if registration is refused?
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What are the current application and renewal fees for each of these intellectual property rights?
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What are the consequences of a failure to pay any renewal fees and what (if any) steps can be taken to remedy a failure to pay renewal fees?
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What are the requirements to assign ownership of each of the intellectual property rights described in section A?
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Is there a requirement to register an assignment of any of these intellectual property rights and, if so, what is the consequence of failing to register?
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What are the requirements to licence a third party to use each of the intellectual property rights described in section A?
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Is there a requirement to register a licence of any of these intellectual property rights and, if so, what is the consequence of failing to register?
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Are exclusive and non-exclusive licensees given different rights in respect of the enforcement of the licensed IP, and if so, how do those rights differ?
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Are there criminal sanctions for infringement of any intellectual property rights, and if so, what are they and how are they invoked?
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What other enforcement options are available for each of the intellectual property rights described in section A? For example, civil court proceedings, intellectual property office proceedings, administrative proceedings, alternative dispute resolution.
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What is the length and cost of such procedures?
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Where court action is available, please provide details of which court(s) have jurisdiction, how to start proceedings, the basics of the procedure, the time to trial, the format of the trial, the time to judgment and award of relief and whether any appeal is available.
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What customs procedures are available to stop the import and/or export of infringing goods?
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Are any non-court enforcement options or dispute resolution mechanisms mandatory in respect of intellectual property disputes in any circumstances? If so, please provide details.
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What options are available to settle intellectual property disputes in your jurisdiction?
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What is required to establish infringement of each of the intellectual property rights described in section A? What evidence is necessary in this context?
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How does the court acquire any necessary information (fact or technical) and in what circumstances does it do so? In particular a) Is there a technical judge, a judge with technical experience, a court appointed expert, an expert agreed by the parties, and/or parties’ expert witness evidence? b) What mechanisms are available for compelling the obtaining and protecting of evidence? Is disclosure or discovery available?
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How is information and evidence submitted to the court scrutinised? For example, is cross-examination available and if so, how frequently is it employed in practice?
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What defences to infringement are available?
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Who can challenge each of the intellectual property rights described in section A?
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When may a challenge to these intellectual property rights be made (e.g. during any registration process or at any time during the subsistence of the right)?
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Briefly, what is the forum and the procedure for challenging each of these intellectual property rights and what are the grounds for a finding of invalidity of each of these intellectual property rights?
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Are there any other methods to remove or limit the effect of any of the intellectual property rights described in section A, for example, declaratory relief or licences of right?
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What remedies (both interim and final) are available for infringement of each of the intellectual property rights described in section A?
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What are the costs of enforcement proceedings and is any kind of costs recovery available for successful parties? Is there a procedural mechanism enabling or requiring security for costs?