Key Proposed Changes to the Indonesia’s Patent Law

Key Proposed Changes to the Indonesia’s Patent Law

Science and technology are essential in increasing competitiveness and the national economy. Therefore, Indonesia must create Human Resources that are innovative and able to adapt to developments in global phenomena, as well as have a strong understanding of Intellectual Property (IP), especially in the field of Patents.

 

Based on research results from the World Intellectual Property Organization (WIPO), Patent applications worldwide continue to increase yearly. This shows that the world community needs protection for its innovative works, including Indonesia, which is very likely to produce many innovations and create inventions that society needs by encouraging domestic innovation to align with economic growth.

 

Patent rights impact the economy and are closely related to technological development and mastery. For every innovative product produced, there will continuously be increased economic value. Inventors always carried out research and studies so that their technology was needed and could be commercialized. If the Patent is successful in attracting market interest, it will, of course, allow other parties to use the invention they own. This is where the public can exploit the Patent through a Patent License.

Currently, patent applications in Indonesia are still dominated by applicants from abroad. Therefore, the Directorate General of Intellectual Property (DGIP) strives to improve services to the public by conducting outreach and assisting in the preparation of Patent specifications (Patent Drafting). The hope is that Patents in Indonesia have a more critical role in improving the economy and social welfare related to innovation, research results, technological inventions, and trade in goods and services.

 

• Base of Change

1. Philosophical Basis

The Patent Law must provide fair protection not only for the interests of society but also for the global economy/ Patent Holders, whether from Indonesia or outside Indonesia and follow generally accepted standards based on international agreements.

2. Sociological Basis

The public’s need for increased and more accessible services in the Patent regime to respond to the speed of global development and innovation in society means there is a need to organize the Patent system.

3. Juridical Basis

Several provisions in the Patent Law need to be adjusted to international provisions through policies that are responsive to global development needs while still prioritizing the social needs of society.

 

• Purposed of Amendments

1. 1. Increase protection of Intellectual Property Rights of traded products.
   2. Guarantee procedures for implementing Intellectual Property Rights that do not hamper trading activities.
   3. Develop regulatory principles and international cooperation mechanisms to handle trade in goods resulting from counterfeiting or piracy of Intellectual Property Rights.

 

Problematic Issues

1. National Innovation Issues

• • Simple Patent/ Utility Model (Article 23)
    Changes were made by speeding up the Patent acquisition process from 12 months to 6 months to encourage the acceleration of domestic production and economic growth.

• • Computer Applications (Article 4 letter d)
    Inventions implemented on computers are grouped into system, method, and use categories under the expanded definition of inventions carried out to encourage economic growth based on 4.0 and 5.0. For the record, since 2016, Patent Applications related to inventions implemented on computers have increased to 30-40% per year of all total patent applications.

• • Second Use & Discovery (Article 4 letter f)
    Regarding Second Use and Discovery, the changes were made because they hinder innovation in the pharmaceutical sector, especially to encourage the growth and innovation of traditional medicines.

• • Grace Period (Article 6)
    The Grace Period was changed by extending it from 6 to 12 months to allow all Inventors in Indonesia to register a Patent.

 

2. Issues of Harmonization of International Regulations

• • Use of Products or Processes in Indonesia (Article 20 & Article 20A)
    Regarding the implementation of a Patent by the Patent Holder, changes are made by adding to recognize the implementation of imports and licensing as the implementation of the Patent by the Patent Holder as mandated by Article 20.

 

3. Patent Servicing Issues by the DGIP

• • Changes to Applicant Data (Article 25)
    The changes were made because the Patent Law, which relates to administrative requirements, still needs to accommodate the title of the invention in the identity content of the Patent application.The title of the invention is essential in a Patent Application, paired with the application number for accurate data validity.

• • Genetic Resources (Article 26)
    For Genetic Resources and/or Traditional Knowledge, changes have been made to simplify the Patent process by simply making a “declaration” letter.

• • Acceleration of Substantive Examinations (Article 55A)
    Changes are made so that the application timeline is expected to be faster and more efficient, considering that in practice, Patent Application documents become “sleeping documents” during the waiting process for 18 (eighteen) months; in this way, services can be improved.

• • Substantive Re-Examination (Article 68 and Article 70)
    The changes were made to overcome cases that occurred because there were still many Applicants who did not understand the Patent Application system and procedures in Indonesia, as well as poor communication between Patent Applicants and Patent Examiners, as well as to provide more opportunities for Applicants who wanted to review the decisions given.

• • Patent Annuity/ Renewal (Article 112, 126, 127, 128, & 128A)
    Changes were made in anticipation of resolving problems that arise in the practice of fulfilling renewal/ annuity payments.

 

Direction of Amendments

1. Encouraging national innovation by increasing Intellectual Property Registration

• • Opening opportunities to obtain Patent Rights for all fields of technology
  • Cost reduction for SMEs

2. Encouraging national innovation by increasing Intellectual Property Registration

• • Adapting Regulations to International Law
  • Protecting investors by protecting their technology.

3. Improved services by simplifying regulations

• • Simplifying the Patent acquisition process
  • Improve automation systems

 

Should you have questions or need other information regarding patent registration and protection in Indonesia and abroad, please get in touch with us via [email protected].

Source:

• DGIP – Urgency of Changes to Law No. 13 of 2016 concerning Patents to Support the Economy