As the year draws to a close, business owners and inventors typically focus on closing their books, evaluating performance, and planning business strategies for the coming year. However, for Patent owners, there is one crucial aspect that is often overlooked: Patent Annuity, namely the maintenance of Patent rights through the payment of annual fees.
No matter how strong an invention is or how great its commercial potential may be, Patent rights can lapse solely due to administrative negligence.
Patent Protection Is Not Automatically Protected for the Protection Duration
Many Patent owners assume that once a Patent certificate is issued, the exclusive rights will automatically remain in force until the end of the protection period. In reality, Patent protection in Indonesia is conditional. This means that the validity of a Patent depends on the fulfillment of legal obligations, one of which is the payment of annual maintenance fees.
This obligation applies to both Patents (with a protection term of 20 years) and Simple Patents/ Utility Models (with a protection term of 10 years), both calculated from the filing date of the application.
What Is a Patent Annual Fee?
A Patent Annual Fee—also commonly referred to as a Patent Maintenance Fee (Patent Annuity)—is a fee that the Patent holder MUST pay up to the final year of the protection term. This annual fee constitutes Non-Tax State Revenue (PNBP). It is imposed in accordance with Government Regulation No. 28 of 2019 on the Types and Tariffs of Non-Tax State Revenue Applicable to the Ministry of Law and Human Rights.
The fee consists of a Basic Fee, plus an additional Fee per Claim. If the fee is not paid within the prescribed time limit, the Patent will be declared revoked.
To prevent such revocation, Indonesian Patent Law provides the following rules:
- Payment of the First-Year Patent Maintenance Fee
The first maintenance fee must be paid no later than 6 (six) months from the date the Patent certificate is issued. This payment covers the annual fees calculated from the filing date up to the year the Patent is granted, plus the annual fee for the following year.
- Payment of Subsequent Annual Maintenance Fees
Subsequent annual maintenance fees must be paid no later than 1 (one) month before the anniversary date of the filing date for the next protection year. For example, if your Patent application was filed on 9 November, the annual maintenance fee will fall due every 9 October.
- Options in Case of Late Payment
If, for any reason, you are unable to pay the maintenance fee on time, you can still pay the annuity to the Directorate General of Intellectual Property (DGIP) through a registered and reliable Patent Consultant, but there will be a penalty on the official fees of 100% and it can only be paid up to 6 months from the deadline.
Consequences of Failure to Pay
If you fail to pay the maintenance fee—either by the original due date or after the granted extension—the DGIP will invalidate or cancel your Patent registration. This means that you will lose all official legal protection for your invention in Indonesia.
Why Is the End of the Year the Right Time for Evaluation?
The year-end period is a strategic moment to:
- Inventory all Patents owned;
- Confirm the payment status of annual fees; and
- Align Patent management with the budget for the coming year.
For Patent portfolio owners, this evaluation also helps determine:
- Which Patents remain commercially relevant; and
- Which Patents should be maintained or deliberately allowed to lapse.
A Simple Checklist for Patent Owners
As a practical guide, the following points should be reviewed toward the end of the year:
- The active status of each Patent;
- Annual fee due dates;
- The amount payable based on the protection year;
- The use or licensing status of the Patent; and
- The accuracy of Patent holder data (name, address, legal entity).
These simple steps often make the difference between a Patent that remains protected and one that lapses unnoticed. By staying informed and complying with the applicable rules, you can ensure that your Patent remains valid and fully protected in Indonesia for its entire 20-year term (or 10-year term for Simple Patent or Utility Model).
Should you need further information regarding the payment of Patent Annuity fees in Indonesia, please contact us directly through the following channels and get a FREE 15-minute consultation:
📩 E-Mail : [email protected]
📞 Book a Call : +62 21 83793812
💬 WhatsApp : +62 812 87000 889
