Many business owners assume that as long as a name or logo has not been used by another party, it can be registered as a Trademark without any issue. In practice, however, during the examination process at the Indonesian Trademark Office (DGIP), there are several reasons why a Trademark Application may be rejected outright—even without considering whether there is an identical or similar Trademark owned by another party.
These reasons are known as “absolute grounds for refusal,” as stipulated in Article 20 of Law No. 20 of 2016 on Trademarks and Geographical Indications.
Rejected Without Comparing Other Trademarks
Absolute grounds for refusal relate to the substance of the Trademark itself, rather than conflicts with existing Trademarks. In practice, the most common reasons include:
- Being contrary to morality
- Being contrary to public order
- Being descriptive of the goods or services
Understanding these three aspects is crucial so that business owners can avoid rejection from the very beginning.
Trademarks Contrary to Morality
One of the most fundamental reasons for rejecting a Trademark is when the sign is considered to violate societal norms of decency or morality.
This may include the use of words, images, or symbols that:
- Contain pornographic elements
- Insult or demean certain groups
- Include vulgar or inappropriate language
- Potentially offend cultural or religious values
The purpose of this rule is to ensure that the trademark registration system does not grant legal protection to signs that may harm social values within society.
Examples include:
- Names containing vulgar expressions
- Logos depicting symbols that may insult certain beliefs
Even if a sign may be considered creative from a marketing perspective, if it is deemed to violate public moral standards, the Trademark Application will most likely be rejected.
Trademarks Contrary to Public Order
In addition to morality concerns, DGIP may also reject signs considered to be contrary to public order.
Public order relates to the broader interests of society and social stability. Therefore, Trademarks containing the following elements may be refused:
- The use of state symbols without authorization
- Unauthorized use of symbols of international organizations
- Elements that may provoke social or political conflict
- Signs that mislead the public regarding official authority or status
For example, the use of national emblems, national flags, or official government symbols in a Trademark is generally not allowed without special permission.
The reason is simple: the public may assume that the product has an official connection with a government institution or authority, when in fact it does not.
Descriptive Trademarks
Another very common reason for Trademark refusal is when the sign is descriptive.
A Trademark is considered descriptive when it directly describes:
- the type of goods or services
- the quality of the product
- the function of the product
- the characteristics of the product
- the geographical origin of the product
For example:
- The term “DELICIOUS COFFEE” for coffee products
- The term “FRESH” for beverages
- The term “SUPER FAST DELIVERY” for courier services
The problem with descriptive Trademarks is that such terms must remain available for use by other businesses to describe their own products.
If these common terms were granted exclusive rights to one party, other businesses would face difficulties describing their products fairly in the marketplace.
Therefore, Indonesian Trademark Law requires that a Trademark must possess distinctiveness in order to be registered.
Why Understanding Absolute Grounds for Refusal Matters
By analyzing these three grounds for refusal, you can not only minimize the risk of rejection but also gain several advantages:
- The registration process can proceed more efficiently
- The risk of losing the registration fees can be minimized
- Your branding strategy can continue according to plan
Should you have further questions regarding the absolute grounds for refusal in Trademark registration in Indonesia or abroad, feel free to contact us through the following channels and receive a FREE 15-minute consultation.
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About AFFA:
Established in 1999, AFFA Intellectual Property Rights is an Indonesia-based boutique IP law firm serving international brands and innovators, offering full-service support—from prosecution and licensing to enforcement and commercialization—in Indonesia’s dynamic IP landscape. Our firm is widely recognized for its excellence, with accolades including “Best Boutique Law Firm in Indonesia” and “IP Enforcement Firm” at the Indonesia Law Firm Awards 2025 by Asia Business Law Journal, as well as being listed as a “Recommended Firm 2024 — Indonesia” by WTR 1000: The World’s Leading Trademark Professionals. For more information, please visit: www.affa.co.id.
