Trademark registration Indonesia

Trademark Registration in Indonesia: How to Do It Correctly

  • InCorp Editorial Team
  • 28 January 2015
  • 5 reading time

Trademark Registration Indonesia: Why do you need to do it?

Trademark registration Indonesia is regulated by the Trademark Act No 15 of 2001 under the Directorate General of Intellectual Property Rights.

According to the Act, the mark (trademark and service mark) is a sign in the form of words, numbers, letters, figures, colors, composition, symbols or a combination of all those used to distinguish the goods or services of one person or legal entity from those of others.

Along with the significant increase in global business competition, most business people are also aware of the increasing importance of trademark protection as a great company asset to business viability.

For countries that are already members of Madrid Agreement and Protocol, the trademark registration will be conducted through a single application to the national or regional intellectual property office.

Countries that are not yet members of the Madrid system will register trademarks based on trademark laws.

 

The Importance of Registering a Trademark in Indonesia

The trademark is a valuable asset for any company because the trademark is considered intellectual property (IP).  In Indonesia, it’s advisable to register your trademark before conducting business due to a high rate of IP piracy.

You may derive some advantages from registering your trademark, such as:

  • Constitutional priority right as first to file. The person or legal entity who is the first to file the trademark generally has priority to use the registered trademark
  • Exclusive protection of the product (goods and services) from infringement claims by others in commerce activities
  • Legal reinforcement of the position of trademark owners in court if there is litigation
  • As a value added of goods or services in quality and reputation to the public

 

Trademark Registration Indonesia in Practice

Registering a trademark may be time-consuming and costly. In Indonesia, if all goes well, foreign businesses need approximately 12-24 months to complete the registration process. There is no guarantee the application will be approved and no refund of fees is made if the application is denied. Here are some procedures involved in trademark registration in Indonesia:

Trademark registration Indonesia - consultant icon1. Find an Intellectual Property Right Consultant (proxy)

According to the Indonesian Trademark Act, foreign applicants are required to process trademark registration through the local IP consultant with a signed Power of Attorney and Declaration of Entitlement.

 

Trademark registration Indonesia - rules icon2. Ensure that the proposed trademark complies with the rules

Some conditions can lead to application denial such as similarity of essential features with a registered product, a well-known product or with a known geographic indication; is in contradiction of moral, religious or public order; and has become public property.

 

Trademark registration Indonesia - audit icon3. Do Some Initial Research

It’s needed to ensure that your proposed trademark hasn’t been registered by another person or legal entity. Checking online is the easiest first step, by searching the database of Indonesian trademark information from DGIPR which is integrated with the WIPO (World Intellectual Property Organization) or looking in the ASEAN TMview. Based on the latest data updated in 2014, Indonesia had about 364,363 registered marks, excluding those in pending status, so it’s important ensure that the proposed trademark is not in line for approval.

 

Trademark registration Indonesia - requirements icon4. Check All Requirements

Complete requirements properly and thoroughly, don’t leave anything incomplete. The general procedures of trademark registration consist of formal examination, substantive review and an announcement.

  • Formal Examination. The DGIPR examiner checks whether the application is in accordance with the requirements and this may take 30 days. It includes items such as whether information about the applicant is complete and written in the Indonesian language, details of mark and its specification, and if the filing feewas submitted.
  • Substantive Review. This stage decides whether the application is approved or denied.  The substantive review process of the trademark features may take up to 90 days.
  • Announcement. After being approved, the trademark will be announced in the Trademark Official Journals for 3 months and is opens to objection or opposition. If there is no significant objection within 3 months, the certificate of trademark will be issued and is valid for 10 years . It is also renewable.

 

Usage of the ® Registered Trademark and Trademark

Registering your trademark doesn’t guarantee it is completely safe. Hence, using ® or ™ in your trademark to affirm to the public that you trademark is registered is another good way to avoid any infringements on your trademark.

You are not obliged or required to obtain permission to use this symbol. The ® symbol is used after the DGIPR issues the trademark certificate and the ™ is for an approved trademark that has not formally been registered yet.

In Indonesia, trademark registration applies nationally and in case a trademark isn’t used for 3-5 years from the registration date, the certificate will be revoked. This means that the holder will lose his or her rights for the trademark.

Currently, the Indonesian government is in process of revising the Indonesian Trademark Act, which will be superseded by the Madrid Protocol by the end of 2015.

Under the Madrid Protocol, foreign applicants can register their trademark in one application, one language, with one single office, one set of fees, and one currency. With this registration process, Indonesia will still have the right to decide whether to protect the proposed trademark or not.

 

Registering Trademarks in Indonesia with Cekindo

Nevertheless, foreign businesses who register their trademark through the international route still need legal assistance for a comprehensive understanding of the legalities of running a business in Indonesia. This can prevent any future disputes or infringement.

As one of the leading market entry and business consulting firms in Indonesia, Cekindo has extensive experience in assisting foreign companies and entities in trademark registration in Indonesia. Contact us now for further discussion.

 

Daris Salam

COO Indonesia at InCorp Indonesia

With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships.

Get in touch with us.

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Frequent Asked Questions

You can transfer the license as long as your current local distributor agrees to change the product license holder. The procedure will be different for each product category. We can only recommend you try to prevent these issues by setting cooperation with a trustworthy partner from the beginning

Before you can distribute your products in Indonesia, you will have to register your product with the BPOM (National Agency of Food and Drugs) and MoH (Ministry of Health). Only an Indonesian legal entity can register the product. If you decide to distribute your product via a local distributor, they will register the product under their entity in Indonesia and become the product license holder. Cekindo can act as your local distributor and register the product under its name.

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.

There are two main types, namely, primary business licenses and non-primary business licenses. The primary ones commonly apply to various industries, such as general and industrial business licenses. Additional non-primary ones are included, depending on the operations of your business. Examples of non-primary business licenses are operational and commercial licenses.