The Importance of Patent Ownership in Employment Contracts in Indonesia: A Case Study

patent-without backgroundToday’s blog post explains the importance of identifying patent ownership in employment contracts. The blog post gives a brief overview of patent protection in Indonesia followed by a case study demonstrating the need to be clear on patent ownership.

Patents in Indonesia

A patent is a right granted to the owner of an invention to prevent others from making, using, importing or selling the invention without his permission. A patent may be obtained for a product or a process that gives a new technical solution to a problem or a new method of doing things, the composition of a new product, or a technical improvement on how certain objects work.

Indonesia adopts a ‘first-to–file’ patent system, meaning that the first person to file an IP right in the Indonesian jurisdiction will own that right once the application is granted. Two types of patent are recognized in Indonesia – ‘Standard Patents’ (for products and processes) and ‘Simple Patents’ (for products only). The process for obtaining a Simple Patent is supposed to be shorter, however, there is a reduced term of protection in this case, as indicated below. For all applications, applicants need to specify the scope of the protection sought and to explain how to work the invention by means of technical descriptions and drawings. Continue reading “The Importance of Patent Ownership in Employment Contracts in Indonesia: A Case Study” »

IP Considerations for the Textile Industry in Indonesia

towels-1511875_1920In today’s blog post, we are taking a closer look at the IP protection in Indonesia concerning textile industry. As the industry is attracting investments and offering many business opportunities, it is vital to remind to European SMEs about the importance of IP Protection. In this article you’ll  learn how to protect your brand, your design and patterns as well as your textile machinery. 

Being one of the 10 largest textile producing countries in the world, Indonesia has a vibrant and growing textile industry that contributes a considerable amount to the country’s GDP and offers employment to over 3 million people.[1] Furthermore, Indonesian government is committed to further developing the country’s textile industry and to increasing the nation’s value of exported textiles to 64 billion EUR in 2030[2]. The anticipated conclusion of the Free Trade Agreement between the EU and Indonesia would further offer European SMEs some promising business opportunities in Indonesia’s textile sector.

At the same time Indonesia’s textile industry still uses relatively old weaving and knitting machinery and is in need of new technologies if it wishes to stay ahead of its competitors in the region like Vietnam and Cambodia. This offers further business opportunities for European SMEs whose top-notch technology is highly appreciated in the region.

European SMEs, however, need to pay attention to protecting their intellectual property rights because despite improvements made in Indonesia’s IP laws and regulations, IP infringements are still commonplace in the country. IP rights are a key factor for business success and neglecting to register these rights could be very costly for SMEs. Thus, a robust and comprehensive IP strategy is needed when entering Indonesia’s market. Continue reading “IP Considerations for the Textile Industry in Indonesia” »

Indonesia: New Notice Allows for Revival of Lapsed Patents

patent-without backgroundGood news for the European SMEs whose patents in Indonesia have lapsed because of non-payment, it is now possible to revive these patents. Today’s blog post explaining the decision of Indonesia’s Directorate General of Intellectual Property about the revival of lapsed patents has  been kindly drafted for us by our South-East Asia IPR SME Helpdesk external expert Ms. Wongrat Ratanaprayul from Tilleke & Gibbins. 

Indonesia’s Directorate General of Intellectual Property issued a notice on December 28, 2017, addressing the revival of null and void patents. The notice allows patent holders, licensees, and intellectual property consultants to revive patents that have lapsed due to non-payment of annuities.

It is now possible to revive a lapsed patent by completing payment of annuity fees that were not paid on time according to the law. In order to do so, the patent holder must submit a declaration stating that they will not take any legal action against another party for infringement of the revived patent during the lapsed period.

There is no explanation as to whether third parties must immediately cease practicing a previously lapsed patent once it has been revived, or whether the patent owner would have the ability to take legal action against such a third party for ongoing infringement once the patent has been revived.

This notice leaves serious concerns about what happens to third parties who have started lawfully using a patent after it has lapsed. Since no further detail on this notice is available, the business implications for such third parties could be tremendous.

For holders of lapsed patents, however, the ability to recover such rights is a significant opportunity. Patent owners should therefore review their patent portfolios in Indonesia and assess whether to take advantage of this new opportunity to revive lapsed patents. Continue reading “Indonesia: New Notice Allows for Revival of Lapsed Patents” »

Indonesia Joins the Madrid Protocol

shutterstock_56485213More good news for the European SMEs wishing to register their trade mark in South-East Asian countries, as in addition to Thailand, Indonesia has also joined the Madrid Protocol. Today’s blog post explaining Indonesia’a accession to Madrid Protocol has been kindly drafted for us by our South-East Asia IPR SME Helpdesk external expert Ms. Wongrat Ratanaprayul from Tilleke & Gibbins. 

On October 2, 2017, Indonesia’s Ministry of Law and Human Rights submitted its instrument of accession to the Madrid Protocol, making Indonesia the 100th member state under the treaty. As a result, brand owners will be able to seek protection under the Madrid Protocol from January 2, 2018, onwards.

Once the Madrid System comes into force in Indonesia, the owner of an existing International Trademark Registration (IR) will be able to expand the scope of their protection by filing a subsequent designation to its existing IR, in order to seek additional protection in Indonesia. In addition, trademark owners will be able to file an IR in any other member country designating Indonesia, and trademark owners in Indonesia will similarly be able to file an International Trademark Application to seek protection of their trademark in any other member countries.

Indonesia has opted for an 18-month deadline, within which the registrar is obliged to issue a notification of refusal of international registrations. However, in the case where an opposition is raised by a third party, the Directorate General of Intellectual Property may notify the World Intellectual Property Organization of a notification of refusal after the expiry of the 18-month time limit.   Continue reading “Indonesia Joins the Madrid Protocol” »