Trademarks in Indonesia 2024

Trademarks in Indonesia 2024

Trademarks in Indonesia 2024

TRADEMARKS 2024

INDONESIA

Emirsyah Dinar

(Affa Intellectual Property Rights)

LEGAL FRAMEWORK

Domestic law

  1. What is the primary legislation governing trademarks in your jurisdiction?

Law No. 20 2016 on Marks and Geographical Indications (the Trademark Law) is the primary law concerning Trademark in Indonesia. However, there are several by-laws that regulate more specific matters, such as, but not limited to:

  • Government Regulation No. 28 2019 concerning Types and Tariffs of Non-Tax State Revenues Applicable to the Ministry of Law and Human Rights. This regulation sets the official fees for various actions that can be filed before the Directorate General of Intellectual Property (DGIP) under the Ministry of Law and Human Rights of the Republic of Indonesia.
  • Government Regulation No. 22 2018 concerning International Registration of Marks Under the Protocols Relevant to the Madrid Agreement Concerning the International Registration of Marks. This regulation covers all aspects of international registrations filed to or from Indonesia.
  • Government Regulation No. 90 2019 concerning The Trademark Appeal Commission, which was established on 29 August 1995 concerning Procedures for Application, Examination and Settlement of Appeals at the Mark Appeal Commission.
  • The Ministry of Law and Human Rights of the Republic of Indonesia Regulation No. 67 2016 concerning Trademark Registration Decree of the Director General of Intellectual Property in the Field of Trademarks. The ministerial regulation prescribes, among others, the requirements of registration, classes of goods and services, rectification of issued certificates and recordals.

International law

  1. Which international trademark agreements has your jurisdiction signed?

Indonesia has ratified various agreements concerning trademarks, such as the Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks, the Trademark Law Treaty and the Paris Convention.

Regulators

  1. Which government bodies regulate trademark law?

The DGIP under the Ministry of Law and Human Rights of the Republic of Indonesia is the relevant body that administrates the protection of all intellectual properties, including trademarks. The DGIP goes beyond regulating and implementing the law, it is also responsible for proactively disseminating the information pertaining to the importance of IP protection through various means, such as podcasts, YouTube videos, Instagram posts and seminars conducted around Indonesia.

REGISTRATION AND USE

Ownership of marks

  1. Who may apply for registration?

Since the Indonesian Trademark Law adopts the first to file principle, in general any individual, organization or company can file for a trademark registration. However, the Trademark Law also regulates trademark registrations that are filed in bad faith. Article 21 paragraph (3) of the Trademark Law stipulates that an application is refused if it is submitted by an applicant in bad faith.

While the implementation of this article during substantive examination holds true for some applications that have similarities with the already established and well-known marks, in practice it is quite challenging to determine whether an application is filed in bad faith or not. A bad-faith application that later matured to registration can always be invalidated at the Court of Commerce as regulated under article 77 paragraph (2) of the Trademark Law, which stipulates the following:

The lawsuit for invalidation may be filed in unlimited time if there is bad faith and/or the relevant Mark contravenes the State ideology, laws and regulations, morality, religions, decency, and public order.

Scope of trademark

  1. What may and may not be protected and registered as a trademark?

By definition of article 1 of the Trademark Law, a mark is any sign capable of being represented graphically in the form of drawings, logos, names, words, letters, numerals, color arrangement, in two and/or three-dimensional shape, sounds, holograms or combination of two or more of those elements to distinguish goods or services produced by a person or legal entity in trading goods or services.

Given the definition above, then the Law acknowledges two types of trademarks, namely traditional and non-traditional marks.

Unregistered trademarks

  1. Can trademark rights be established without registration?

Indonesia is a jurisdiction that adopts the first to file principle. Hence, a prior use itself is not sufficient to establish rights in the country.

Famous foreign trademarks

  1. Is a famous foreign trademark afforded protection even if not used domestically? If so, must the foreign trademark be famous domestically? What proof is required? What protection is provided?

A trademark can only be protected if it is registered in Indonesia, regardless of its fame. However, the Indonesian Trademark Law has a mechanism to somewhat protect a famous foreign trademark from bad faith registrations by other parties. Should another party try to file a malicious trademark application that is identical or similar to a famous foreign trademark, such application will be rejected on the basis of article 21 paragraph (1) b and c, which stipulates the following:

An Application is refused if the Mark is substantively similar to or identical with a well-known Mark of other parties for similar goods and/or services OR a well-known Mark of other parties for different goods and/or services complying with certain requirements.

The issue is then shifted to what constitutes as a famous trademark. Article 18 of the Ministry of Law and Human Rights of the Republic of Indonesia Regulation No. 67 2016 concerning Trademark Registration Decree of the Director General of Intellectual Property in the Field of Trademarks has set out the criteria of what makes a trademark famous, such as:

  • the level of knowledge or public recognition against the mark in the business field that concerned as a well-known mark;
  • the volume of sales of goods and/or services and benefits derived from using the mark by the owner;
  • the market share controlled by the mark in relation to the circulation of goods and/or services in the community;
  • the area of use of the mark;
  • the period of use of the mark;
  • the intensity and promotion of the mark, including value of investment used for the promotion;
  • the number of trademark applications and registration around the world;
  • the success rate of law enforcement, in particular regarding the recognition of the mark as a well-known mark by an authorized institution; or
  • the valuation of the mark because of the reputation and quality assurance of goods and/or services protected by the mark.

However, a well-known mark that is famous abroad does not always necessarily have the same level of fame in Indonesia. This raises the issue as to whether the trademark owner should also establish its fame in Indonesia before taking any action against other parties.

The benefits of registration

  1. What are the benefits of registration?

Pursuant to the Trademark Law, the right on a mark means the exclusive right granted by the state to a registered mark owner for a definite period to use his or her mark or authorize others to do otherwise. Hence, by registering a trademark in Indonesia, the owner can establish its legal right should there is an infringement by another party. This includes, but is not limited to, requesting an e-commerce listing takedown notice, sending a cease and desist letter, filing a police report for the criminal aspect of the infringement, seeking damages at the Court of Commerce, issuing licensing rights, filing injunctions and conducting a Customs Recordal before Indonesian Customs.

Filing procedure and documentation

  1. What documentation is needed to file a trademark application? What rules govern the representation of the mark in the application? Is electronic filing available? Are trademark searches available or required before filing? If so, what procedures and fees apply?

A trademark search is strongly suggested for anyone who wishes to file a trademark application in Indonesia. The search report will identify potential hazards and tumbling blocks to an otherwise successful registration process. Assuming the search report gives the all-clear for continuing the application process, the applicant shall prepare the following:

  • name of the applicant;
  • address;
  • list of goods and services; and
  • the representation of the mark to be filed, which can be in a form of wordmark, logo or non-traditional marks.

Once the above information has been provided, then we will prepare the following documents to be signed by the client:

  • power of attorney; and
  • statement of mark ownership.

Please be mindful that since 2019, e-filing is the only method of acceptable filing in Indonesia.

Registration time frame and cost

  1. How long does it typically take, and how much does it typically cost, to obtain a trademark registration? When does registration formally come into effect? What circumstances would increase the estimated time and cost of filing a trademark application and receiving a registration?

Assuming the application does not receive any opposition and provisional refusal, then it may only take 14 to 16 months from filing to obtaining a registration number. This time estimate is significantly faster than it used to be five years ago when even a straightforward registration would take two to three years.

Classification system

  1. What classification system is followed, and how does this system differ from the International Classification System as to the goods and services that can be claimed? Are multi-class applications available and what are the estimated cost savings?

Indonesia adopts the NICE classification system with a few twists to adapt to certain local goods or services that are not available in other countries. Multi-class applications are available but we generally advise our clients to file single-class applications instead. There is a reason for this – if one of the classes in a multi-class application receives an office action, then it will also impact other classes that will otherwise proceed to registration in a much faster manner if they are filed as single-class applications.

In general, all applicants should refer to the Madrid Goods and Services Manager for the list of acceptable items in Indonesia. The classification system in Indonesia is very rigid – if the item is unavailable in the e-filing system, then it cannot be filed.

Examination procedure

  1. What procedure does the trademark office follow when determining whether to grant a registration? Are applications examined for potential conflicts with other trademarks? Are letters of consent accepted to overcome an objection based on a third-party mark? May applicants respond to rejections by the trademark office?

While there is no official trademark examination guideline issued to the public, it is understood that a trademark examination is mainly based on three very important articles in the Trademark Law, namely articles 20, 21 and 22. Article 20 focuses on inherent distinctiveness, article 21 focuses on conflicts with other prior marks and famous marks, whereas article 22 focuses on the inclusion of a generic name with additional wording to the extent that it contains distinctive elements.

Any opposition or rebuttal during the publication stage will be considered during the substantive examination. If there is no opposition within a period of not more than 30 working days from the expiration date of publication, substantive examination will be carried out on the application. In theory, an examination shall be completed within 150 working days. However, in practice, it may take longer. In the event the Examiner decides to register the application, then a registration number will be issued.

If the applicant receives a provisional refusal, then the Trademark Law provides a deadline of 30 working days from the date of receipt of the letter of provisional refusal to respond. If the response is still rejected, then a final rejection letter will be issued.

Letters of consent do not work all the time – such acceptance will depend on the discretion of the Examiner.

Use of a trademark and registration

  1. Does use of a trademark or service mark have to be claimed before registration is granted or issued? Does proof of use have to be submitted? Are foreign registrations granted any rights of priority? If registration is granted without use, is there a time by which use must begin either to maintain the registration or to defeat a third-party challenge on grounds of non-use?

Since Indonesia adopts the first to file principle, a prior use does not need to be claimed before registration. The evidence of use does not have to be submitted.

If the applicant has filed another application earlier in other countries, the applicant has six months from the priority date to claim for a priority in Indonesia.

Concerning non-use, by law a trademark may be canceled at the Court of Commerce if a registered mark has not been used for three consecutive years from the date of registration or from the date of last use. However, the law does not stipulate the minimum threshold of use – hence in general any non-use cancellation is very challenging.

Markings

  1. What words or symbols can be used to indicate trademark use or registration? Is marking mandatory? What are the benefits of using and the risks of not using such words or symbols?

The Indonesian Trademark Law does not regulate the use of markings. However, no one may mislead the public by indicating the trademark has been registered if in fact it has not.

Appealing a denied application

  1. Is there an appeal process if the application is denied?

The Trademark Law allows the applicant to file for a response should its application receives a provisional refusal and final refusal. Once an application receives a final refusal, the applicant can file an appeal to the Trademark Board of Appeal within 90 working days from the date of the notification has been received.

The Board shall issue the decision to refuse or accept the appeal within three months from the date when the appeal is lodged in. However, in practice it takes longer than three months.

If the Board of Appeal rejects the appeal, then the applicant or petitioner can file a further appeal to the Court of Commerce, but no later than three months from the date of receipt of the decision from the Board of Appeal.

Third-party opposition

  1. Are applications published for opposition? May a third party oppose an application prior to registration, or seek cancellation of a trademark or service mark after registration? What are the primary bases of such challenges, and what are the procedures? May a brand owner oppose a bad-faith application for its mark in a jurisdiction in which it does not have protection? What is the typical range of costs associated with a third-party opposition or cancellation proceeding?

Applications are published for two months only. During the publication period, any interested party may file for oppositions and they will be considered during the substantive examination stage. Once the publication period has lapsed, there is no formal means of filing for opposition, including by extension requests.

To have a successful opposition proceeding, it is strongly recommended that the opposer has valid legal standing, namely an earlier application or registration in Indonesia. Otherwise, it is likely that the examiner will reject the opposition by citing the first to file principle.

Invalidations and cancellations initiated by any third party are only feasible once the trademarks to be invalidated or canceled have been registered. Both of them have to be filed at the Court of Commerce.

Duration and maintenance of registration

  1. How long does a registration remain in effect and what is required to maintain a registration? Is use of the trademark required for its maintenance? If so, what proof of use is required?

A registration remains in force for 10 years and the protection commences from the filing date. The registration can be renewed every 10 years and the renewal can be filed within six months before the due date, or up to six months after the due date with additional official fees.

While proving the actual use is not required to renew a registration, a statement of use of the mark will have to be signed by the trademark owner.

Surrender

  1. What is the procedure for surrendering a trademark registration?

There are two common methods of surrendering a trademark that also depends on the circumstances. If the application or registration is to be simply abandoned by its owner, the owner can proactively withdraw it by requesting the notice of withdrawal to the Directorate General of Intellectual Property. Another way of surrendering an application or registration is by assigning it to another party.

Related IP rights

  1. Can trademarks be protected under other IP rights?

There is no overlapping right between trademarks with copyrights and industrial designs.

Trademarks online and domain names

  1. What regime governs the protection of trademarks online and domain names?

The Trademark Law also regulates the protection of trademarks online. However, domain names are more specifically regulated under Law No. 11 of 2008 concerning Information and Electronic Transactions as amended by Law No. 19 Y2016 (the Information and Electronic Transactions Law).

Domain names apply the same ‘first to file’ principle – this is stated in the explanation of article 23 paragraph (1) of the Information and Electronic Transactions Law, namely domain names in the form of addresses or identities of state administrators, people, business entities or the public, the acquisition of which is based on the principle of the first registrar (first come first serve). This is what will later lead to many disputes, because the weakness of the principle of the first registrant on this domain name lies with a registrar who does not check competently on the registrar.

LICENSING AND ASSIGNMENT

Licenses

  1. May a license be recorded against a mark in the jurisdiction? How? Are there any benefits to doing so or detriments to not doing so? What provisions are typically included in a licensing agreement?

A registered mark can be licensed out to other parties in Indonesia. For the agreement to have binding legal effect against any third party, it will have to be recorded at the Directorate General of Intellectual Property (DGIP). In general, a license agreement should cover the details of the licensor and the licensee, the nature of licensing (exclusive or non-exclusive), the ability to sub-license (or not), term of the license agreement, rights and responsibilities of the parties, and the object or trademark to be licensed.

The licensing agreement must not contain provisions that either directly or indirectly damage the Indonesian economy or limitation obstructing Indonesian capacity to acquire and develop technology.

Assignment

  1. What can be assigned?

A trademark application or registration can be assigned to another party, provided that the deed of assignment is recorded at the DGIP to be fully binding. The assignment shall cover all goods or services covered by the assigned mark. The other business assets are not generally required to be assigned to make the trademark assignment valid, except if both parties agree otherwise.

Assignment documentation

  1. What documents are required for assignment and what form must they take? What procedures apply?

Both parties shall sign a deed of assignment that later will be notarized and submitted to the DGIP. A power of attorney will also need to be provided.

Validity of assignment

  1. Must the assignment be recorded for purposes of its validity?

A signed deed of agreement must be recorded before the DGIP to be valid.

Security interests

  1. Are security interests recognized and what form must they take? Must the security interest be recorded for purposes of its validity or enforceability?

In theory, all kinds of IP rights can be used as security interests. But in practice, the recordal of security interests is not possible for the time being.

ENFORCEMENT

Trademark enforcement proceedings

  1. What types of legal or administrative proceedings are available to enforce the rights of a trademark owner against an alleged infringer or dilutive use of a mark, apart from previously discussed opposition and cancellation actions? Are there specialized courts or other tribunals? Is there any provision in the criminal law regarding trademark infringement or an equivalent offence?

There are several approaches that need to be considered when commencing the trademark enforcement proceedings. It is always a prudent course of action to start with sending a cease and desist letter against the infringer to immediately cease the infringing action. Should the infringer does not comply with the requests that have been addressed in the cease and desist letter, then the trademark owner has the option to file a criminal action against the infringer to the civil investigator at the Directorate General of Intellectual Property (DGIP) or to the Indonesian Police.

All intellectual property disputes are the domain of the Court of Commerce. Apart from invalidations and cancellations of registered marks, any party with legal rights can also seek civil actions through the Court of Commerce, namely to request preliminary injunction and to seek for damages or remedies.

The penalties for infringements are covered by the Trademark Law, namely the following articles:

CHAPTER XVIII CRIMINAL PROVISIONS

Article 100

Every person unlawfully uses any Mark which is identical to registered Mark of other parties for similarly produced, and/or traded goods and/or services, shall be sentenced to imprisonment of up to 5 (five) years and/or fines up to Rp2,000,000,000.00 (two billion rupiahs).

Every person unlawfully uses any Mark which is substantially similar to registered Mark of another party for similarly produced and/or traded goods and/or services, shall be sentenced to imprisonment for up to 4 (four) years and/or fines up to Rp2,000,000,000.00 (two billion rupiahs).

Every person violating the provisions as referred to in section (1) and section (2), whose goods cause health impairment, environment distortion, and/or human deceases, shall be sentenced to an imprisonment up to (10) ten years and/or fines up to Rp5.000.000.000,00 (five billion rupiahs).

Article 101

Every person unlawfully uses any signs which are identical to Geographical Indications of other parties for similar goods and/or products or identical to registered goods and/or products, shall be sentenced to imprisonment up to 4 (four) years and/or up to Rp2.000.000.000,00 (two billion rupiahs).

Every Person unlawfully uses any sign which is substantially similar to Geographical Indications of another party for similar goods and/or products or identical with registered goods and/or products, shall be sentenced with imprisonment up to 4 (four) years and/or fines up to Rp2.000.000.000,00 (two billion rupiahs).

Article 102

Every Person who trades goods and/or services and/or product which is known or allegedly know that the goods and/or services and/or product constitute criminal acts as referred to in Article 100 and Article 101 shall be sentenced with imprisonment up to 1 (one) year or fines up to Rp200.000.000,00 (two hundred million rupiahs).

Article 103

The criminal acts as referred to in article 100 to article 102 constitute complaint delict.

Procedural format and timing

  1. What is the format of the infringement proceeding?

Civil proceedings in Indonesia are conducted in writing and oral arguments. The judges will listen to the oral arguments of each party one at a time, and they rely heavily on documentary evidence. Witnesses of fact can also provide oral evidence before the court. However, a witness statement or affidavit alone will not be sufficient since it is considered merely supplementary documentary evidence. In general, the procedure of the trial is as follows:

  • attendance at the first hearing after the court summons both plaintiff and defendant;
  • attendance at the second hearing, when the defendant files its response to the plaintiff’s cancellation suit;
  • preparation of the plaintiff’s reply to the defendant’s response to the suit;
  • attendance at the third hearing to file the plaintiff’s reply;
  • attendance at the fourth hearing when the defendant files its response to the plaintiff’s reply;
  • preparation of the plaintiff’s evidence to be submitted to the court;
  • attendance at the fifth hearing to submit the plaintiff’s evidence and review the defendant’s evidence;
  • preparation and filing of the conclusion of the case based on documents and evidence filed with the court by both plaintiff and defendant;
  • attendance at the sixth hearing on the filing of the conclusion of the case;
  • attendance at the seventh hearing to hear the judges’ decision; and
  • issuance of the court’s decision.

For civil procedure, in theory a decision shall be issued within three months. However, in practice, it may take slightly longer due to the extensions requested by any of the parties involved.

Burden of proof

  1. What is the burden of proof to establish infringement or dilution?

In Indonesian civil procedure, the burden of proof regarding the facts on which a claim is based lies with the plaintiff. Article 1865 of the Indonesian Civil Code states that anyone who claims to have a certain right or who refers to a fact to support such a right, or who objects to another party’s right, must prove the existence of that right or that fact. Evidence may comprise written evidence, evidence presented by witnesses, or through inference, confession or oath.

In our experience, it is prudent to collect as much diverse evidential material as possible, such as purchases made by mystery shoppers, marketing materials found online and offline, and expert witnesses that may provide substantive statements pertaining to the alleged infringement. Furthermore, written evidence must be presented in the Indonesian language – translated by a sworn translator if necessary.

Standing

  1. Who may seek a remedy for an alleged trademark violation and under what conditions? Who has standing to bring a criminal complaint?

In accordance with article 83 of the Trademark Law, the registered mark owner and/or its licensee may file a lawsuit against other parties who unlawfully use the mark that is similar to or identical for similar kinds of goods or services in the form of:

  • claim for damages; and/or
  • ceasing all acts related to the use of marks.

The lawsuit may also be filed by the owner of a well-known mark based on a court decision.

When it comes to criminal actions, ideally it is the trademark owner who shall file the complaint. However, under certain circumstances, the authorized licensee can also file a criminal complaint upon the instruction and authorization of the trademark owner.

Border enforcement and foreign activities

  1. What border enforcement measures are available to halt the import and export of infringing goods? Can activities that take place outside the country of registration support a charge of infringement or dilution?

If the trademark owner has a company domiciled in Indonesia, then it can record its trademark before the Customs. See the full information below:

Time needed for recordal process

30 working days, but it may take longer

Duration of recordal once it is approved

One year and can be renewed

Documents needed for recordal

– Power of attorney for the recordation (simply signed) + power of attorney for filing the request for a temporary injunction (to be notarized and legalized at the Indonesian Embassy)

– Company Deed of Establishment

– NPWP(Tax Identity Card of the company)

– SIUP/TDP (Company Registration license)

– Copy of the Trademark Certificate

– Details of the authenticity of the products that explain the name of the exporter and the importer, product packaging, distribution route, volume, marketing details

and number of products distributed in certain areas in Indonesia

– A statement of mark ownership

– A statement of liability that explains that the owner of the mark will be liable for all legal consequences of the recordation

– Proof of trademark assignment (if the trademark has been assigned)

– Details of the parties who have been granted to export or import the goods that bear the trademark that is requested to be recorded at the Customs

– Details of the Indonesia – based product experts

Time to authenticate once a notice of provisional seizure is made

Two days only – hence the importance of having the Indonesia – based product experts

The seizure process and punishment issued in customs seizures

Please note that trademark holders should have a registered business address in Indonesia. Otherwise, it is currently not possible to file a recordation with Customs. Assuming the recordation has been approved and Customs notifies the proprietor of the mark, the proprietor of the mark only has two days to confirm whether they are interested in filing a temporary injunction needed to withhold the cargo for 10 days (can be extended once). They also need to pay a bond of at least 100 million rupiah.

 

Bonds

There are two main regulations governing Customs Recordal in the country, namely Government Regulation No. 20/2017 and the lex specialis of it is Ministry of Finance Regulation No. 40/PMK.04/2018 on Recordal, Seizure, Collateral, Temporary Suspension, Monitoring and Evaluation on the Import and Export of Goods Suspected or Resulted from IP Infringements.

The latter states that the bond of 100 million rupiah should be provided in the form of a bank or insurance company guarantee. The bond should be provided once the IP owner responds to the notification by Customs about the cargo hold-up at the port within four days of providing the response. At the same time, the IP owner should request a temporary suspension to the court within the same time frame should they wish to carry on with the suspension and examination of the cargo.

The bond is aimed to cover the operational costs of the Customs and to bear the costs claimed by the importers or exporters in case the cargo does not contain any infringing goods. The validity of the bond should be at least 60 days.

If the mark owner does not meet the minimum requirements to record its trademarks before Customs, then it can always request an injunction at the Court of Commerce to temporarily halt the infringing activities.

Discovery

  1. What discovery or disclosure devices are permitted for obtaining evidence from an adverse party, from third parties, or from parties outside the country?

There is no discovery process in Indonesian legal practice and parties do not have a right to demand the submission of documents.

Timing

  1. What is the typical time frame for an infringement or dilution, or related action, at the preliminary injunction and trial levels, and on appeal?

Note that by law the Court of Commerce must issue its decision within 90 days of the date of filing of the suit for trademark matters. However, for criminal actions the process may take longer – sometimes from three to nine months if the documents are complete.

Limitation period

  1. What is the limitation period for filing an infringement action?

In accordance to article 78 or the Indonesian Penal Code, the right to prosecute shall lapse by lapse of time:

  • in one year for all misdemeanors and for the crimes committed by means of the press;
  • in six years for the crimes upon which fine, custody or imprisonment of not more than three years is imposed;
  • in 12 years for all crimes upon which temporary imprisonment for more than three years is imposed; and
  • in 18 years for all crimes upon which capital punishment or life imprisonment is imposed.

Litigation costs

  1. What is the typical range of costs associated with an infringement or dilution action, including trial preparation, trial and appeal?

Not applicable.

Appeals

  1. What avenues of appeal are available?

The Supreme Court facilitates cassation based on the issuance of the lower court (i.e, the Court of Commerce).

Defenses

  1. What defenses are available to a charge of infringement or dilution, or any related action?

There are several matters to consider when facing an infringement or dilution suit. The most important is to verify if the plaintiff has used the mark continuously for three years from the date of last use or from the date of registration. If that is not the case, then we can file for a non-use cancellation action as a counter-attack measure.

However, if we face a blatant charge for an infringement that is very identical in nature, then it is best to seek settlement out of court to avoid maximum penalties by the Court of Commerce.

Remedies

  1. What remedies are available to a successful party in an action for infringement or dilution, etc? What criminal remedies exist?

All laws pertaining to intellectual property assets allow the infringed to seek damages through the Court of Commerce. However, there is no known formula for determining the damages to be awarded. The compensation shall be given based on a final and binding decision of a civil or criminal court. Note that attorney’s fees shall be borne by the party that receives legal service from the entrusted attorney. Hence, it will not be possible to seek compensation from the other party for the legal fees already incurred by the claimant or plaintiff.

With regard to injunctions, the Trademark Law allows the rights holder to request a provisional injunction to stop the circulation of infringing articles, as well as to secure or collect them, and to avoid greater losses. Provisional injunctions may be useful to perform their intended purpose to the extent that they can limit the ability to record a patent registration with Indonesian Customs. To achieve this, the provisional injunction has to be served to Indonesian Customs to stop the influx of suspected infringing articles into the distribution channels.

ADR

  1. Are ADR techniques available, commonly used and enforceable? What are the benefits and risks?

Indonesia is blessed to have various options when it comes to ADR that are enforceable and proven in practice. The Intellectual Property Rights Mediation Arbitration Body (BAMHKI) is an IP-specific arbitration venue in the country. Other arbitration options are also available, such as through the Indonesian National Arbitration Body (BANI). Arbitration is the best option for obtaining a final and binding decision but can be resolved in a short time. In fact, the arbitral award must be made voluntarily by the parties. However, in the event that the losing party is reluctant to implement the arbitration award, the court can still be asked to execute the decision.

UPDATE AND TRENDS IN TRADEMARKS IN INDONESIA

Key developments of the past year

  1. Are there any emerging trends, notable court rulings, or hot topics in the law of trademark infringement or dilution in your jurisdiction?

In the past year, we have seen more infringement cases that involve safety products, automotive parts, and luxury products. Lower prices remain the driver for the circulation of counterfeits. One of the most interesting trends that has come out is the fact that not only foreign trademarks are affected by illicit activities, but we are seeing more national trademarks that have fallen victim as well.

* The information in this chapter was accurate as at August 2023.

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