Indonesia’s Trademark landscape has become increasingly challenging for legitimate brand owners in recent years. Filing your Trademark first is no longer a guaranteed safeguard against opportunists. A concerning trend has emerged: the surge of bad faith Trademark applications, commonly called Trademark squatting.
At AFFA Intellectual Property Rights, we have witnessed — and successfully countered — this rise firsthand.
The Growing Threat of Bad Faith Filings
According to data from the Directorate General of Intellectual Property (DGIP) in Indonesia, Trademark applications have steadily increased annually. However, not all of these filings are genuine. Opportunistic parties, both local and international, are taking advantage of Indonesia’s first-to-file system by registering Trademarks identical to or confusingly similar to well-known brands without any legitimate intent to use them.
These bad actors aim to profit by either selling the Trademark rights back to the rightful brand owners or using them to confuse consumers.
Real Examples: How AFFA Wins Against Squatters
At AFFA, we have led multiple successful cases challenging bad faith registrations. Two notable victories highlight how vigilant defense and a strong legal approach can protect your brand:
- Guangzhou Sanwich Biology Technology Co., Ltd.
In 2024, our client, the owner of the well-known hair care brand SEVICH, faced a situation in which a third party registered their Trademark in Indonesia without authorization. We filed a Trademark invalidation action, presenting strong evidence of prior use and global brand recognition. The Commercial Court at the Central Jakarta District Court ruled in favor of our client, affirming that the third-party registration was made in bad faith. - Inner Mongolia Kunming Cigarette Limited Liability Company
Similarly, this client, known globally for its DONGCHONGXIACAO brand of cigarettes, encountered unauthorized parties attempting to capitalize on its brand by filing Trademark applications in Indonesia. We secured a favorable decision invalidating the bad faith Trademark registration by leveraging thorough documentation, the client’s international reputation, and a well-structured legal argument.
Why Filing First Alone is Not Enough
Indonesia operates on a first-to-file system, but:
- Squatters may file before you, especially if you have not entered the market yet.
- Even after filing, vigilance is required to monitor for similar or identical marks.
- The law provides avenues to invalidate bad faith registrations, but only if the rightful owner is proactive.
Our Approach to Defending Brands
At AFFA, we go beyond simple filings:
- Trademark Monitoring:
We routinely monitor new filings to detect possible bad-faith applications. - Evidence Gathering:
In invalidation actions, we compile comprehensive evidence — proving prior use, reputation, and lack of good faith from the applicant. - Swift Legal Action:
We quickly file oppositions or invalidations to block squatters before they gain leverage. - Strategic Negotiation:
When necessary, we negotiate favorable outcomes without lengthy litigation.
Conclusion: Protect Your Brand, Act Proactively
The rise of bad faith Trademark filings in Indonesia is real, and serious players must be ready to defend their brand. Filing your Trademark early is necessary, but not sufficient. Active monitoring, quick response, and expert legal support are key.
AFFA is committed to helping businesses navigate these challenges and win the fight against Trademark squatters.
Should you need assistance securing or defending your Trademark in Indonesia? Contact our team at AFFA Intellectual Property Rights today at [email protected].
