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” »

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” »

IP Considerations for the Automotive Industry in South-East Asia

shift-1838138_1920 In today’s blog post we are taking a closer look at IP protection in South-East Asia for the Automotive Industry, which continues to offer many business opportunities for the European SMEs. You will learn about patent protection and when it would be wiser to relay on trade secrets instead. We will also discuss how you can protect the design of your products and how to take care of your brand. 

The automotive industry in South-East Asia has exhibited robust growth over the last few years. According to the latest statistics from the ASEAN Automotive Federation, combined motor vehicle sales in 7 major ASEAN countries (Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam and Brunei) reached 3.16 million in 2016[1], almost double the sales figure in 2006. Underpinned by increasing disposable income throughout the region and increasing demand for motor vehicles South-East Asia’s automotive market is expected to continue to grow rapidly. This also means that there will be promising business opportunities for European SMEs whose expertise and technology are especially sought after.

Taking into account the constant innovation that is at the forefront of the automotive industry, the importance of intellectual property as well as its protection and enforcement, are undeniable. Thus, when exploring the possibility of investing or expanding into the South-East Asian markets, European SMEs should be aware of the IP risks that they will face when operating in this region, in particular with respect to the new technologies and the ability to protect these technologies from local competitors. A comprehensive IP strategy is needed for succeeding in South-east Asia’s markets. Continue reading “IP Considerations for the Automotive Industry in South-East Asia” »

IP Protection Strategies in Indonesia for the Logistics and Transportation Industry

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Logistics3Indonesia’s logistics and transportation industry is growing rapidly due to the strong economic development of the country and gradual increase in domestic demand fueled by the rise of the country’s middle class.  Opportunities for logistics providers also continue to expand thanks to the strong growth in Indonesia’s e-commerce sector.  

However, transportation costs in Indonesia are still significantly higher than in many of its neighboring countries. This is reasonably due to the geographic challenges that Indonesia faces as a conglomerate of thousands of islands composing the country, and also due to Indonesia’s strict logistics and transportation policies regulating import and export of goods. For example, the requirement that ships with imported cargo are obliged to call at particular ports, which means, for example in the case of agricultural imports, that they all would need to go through Surabaya port before being shipped to the other markets where they are needed1  causing an inevitable congestion of shipments rather than a procedure to streamline the logistics. 

On the other hand, as an emerging and fast growing economy, the industry is expected to offer in the near future many lucrative business opportunities to European SMEs specialised in logistics, as also recently outlined by Indonesia’s President including ambitious expenditure plans for building new roads, airports and railways and to develop a modern maritime transport system together with better regulations2.    

European logistics and transportation SMEs wishing to enter the Indonesian market need to keep in mind that despite improvements in Indonesia’s IP laws and regulations, counterfeiting and other IP infringements are still  commonplace in Indonesia and thus robust IP strategies are needed to grow their business in Indonesia.  

Continue reading “IP Protection Strategies in Indonesia for the Logistics and Transportation Industry” »