world view of Ip protection in indonesia

Indonesia is currently on the U.S. Trade Representative’s (USTR) Special 301 priority watch list for Ip protection indonesia. Indonesia’s failure to effectively protect intellectual property and enforce IPR laws has resulted in high levels of physical and online piracy.

Local industry associations have reported tens of millions of pirated films, music, and software in circulation in Indonesia in recent years, causing potentially billions of dollars in losses.  Indonesian physical markets, such as Pasar Mangga Dua, were included in USTR’s Notorious Markets list in 2018.

Indonesian efforts to enhance IP protection policy were mixed this year. The 2016 Patent Law, continues to threaten fundamental IP protections. Among these concerns are a requirement to manufacture products or use processes covered by patents in Indonesia under Article 20 of the law as well as apparent restrictions on the patentability of computer programs and new uses and forms of existing drugs, disclosure requirements related to traditional knowledge and genetic resources, and unclear grounds and processes for issuing compulsory licenses.

Indonesia has stated its intention to revise Article 20, but has yet to take concrete steps to do so. Indonesia continued implementation of the 2016 Law on Trademarks, which shortened and simplified examination periods, broadened protection for non-traditional marks, and increased criminal penalties and maximum fines (up to 10 years and approximately USD $155,000 in some cases).

Indonesia acceded to the Madrid Protocol on Trademarks in January 2018, which will simplify the process for obtaining recognition of international trademarks. Indonesia also passed a long-awaited Presidential Regulation establishing a system of recordation and authorizing customs officials to conduct ex officio investigations, but it remained unclear whether the system will effectively protect IP rights-holders because the regulation does not provide for rights holders not domiciled in Indonesia from participating in the recordation system.  Such a restriction could have a serious negative effect on the utility of the system and the rights of non-Indonesian owners of intellectual property. 

In July 2015, the Directorate General for Intellectual Property (DGIP) and Ministry of Communications and Information Technology (KOMINFO) jointly released implementing regulations under the Copyright Law to provide for rights holders to report websites that offer IP-infringing products and sets forth procedures for blocking IP-infringing sites. In August 2015, Indonesia’s Creative Economy Agency (BEKRAF) launched an anti-piracy task force with film and music industry stakeholders. In late 2017, BEKRAF reported that it had received 739 complaints about IP infringing websites, and that the Indonesian government had blocked 186 IP infringing sites.

The Directorate General for Intellectual Property (DGIP) continued to employ approximately 20 investigators, but saw the number of investigations drop from 58 in 2016 to 16 in 2017. BPOM, Indonesia’s food and drug administration, reported the seizure of more than USD $3.5 million in counterfeit drugs and cosmetics during the year. Trademark, Patent, and Copyright legislation requires a rights-holder complaint for investigations, and DGIP and BPOM investigators lack the authority to make arrests so must rely on police cooperation for any enforcement action. In 2012, the Supreme Court ruled that Customs may obtain rights for temporary injunctions to suspected counterfeit shipments at the border.

Additional information regarding treaty obligations and points of contact at local IP offices, can be found at the World Intellectual Property Organization (WIPO) country profile website http://www.wipo.int/directory/en/.For a list of local lawyers, see: http://jakarta.usembassy.gov/us-service/attorneys.html

In any foreign market companies should consider several general principles for effective ip protection indonesia. For background, please link to our article on Protecting Intellectual Property and Stopfakes.gov for more resources.

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