Nexus Between Competition And IP Rights In Indonesia

Indonesia's Law No. 5 of 1999 regarding the Prohibition of Monopolistic Practices and Unfair Business Competition (the Anti-Monopoly Law) exempts agreements related to IP rights, namely licenses and franchises, from the scope of its regulation. This provision is regulated in article 50 of the Anti-Monopoly Law.

For completeness, the Business Competition Supervisory Commission (KPPU) issued Regulation No. 2 of 2009 regarding Guidelines on Exceptions to the Implementation of the Anti-Monopoly Law in Relation to Agreements Related to IP (KPPU Reg 2/2009).

KPPU Reg 2/2009 stipulates that license agreements related to IP are exempted from the Anti-Monopoly Law if they do not contravene the principles and purposes as set out in articles 2 and 3 of the Anti-Monopoly Law, as follows: