Many large businesses started as family businesses. Parents build the business, their children later help develop it, and ultimately the business is expected to continue from one generation to the next.
However, one issue often receives attention only after the business has grown: who actually owns the family business’s Trademark?
Is the Trademark registered under the name of the father or mother as the founder? Is it jointly owned by several family members? Or is it registered under the name of a company whose shares are owned by the family?
This may appear to be merely an administrative matter, but the answer can have significant consequences when the business passes to the next generation, the composition of the family changes, the company brings in investors, or one of the owners passes away.
Interestingly, there is not always one ownership structure that can be regarded as the most appropriate. For a family business, there are at least three Trademark ownership options that may be considered, each with its own characteristics, advantages, and consequences.
Regardless of the Option: A Trademark Is an Asset
A Trademark is not merely a name displayed on a storefront, product packaging, or social media account. Once registered, its owner obtains a Trademark Right, namely the exclusive right to use the Trademark or to authorize another party to use it.
Minister of Law Regulation No. 5 of 2026 concerning Trademark Registration also confirms that a Trademark Applicant may be an individual or a legal entity. This means that, from the outset, a family business has a choice as to who should be designated as the owner of its Trademark.
Ideally, this decision should not be based solely on the question:
“Who founded this business?”
It should also consider:
“Who should own this Trademark in the long term?”
This is where Trademark ownership planning becomes relevant.
Option 1: The Trademark Is Jointly Owned by Several Family Members
The first option is co-ownership, where the Trademark is owned by more than one family member.
For example, a culinary business may be established jointly by a father and his two children. All three have been involved in the business from the beginning, and the family wants the Trademark to be directly owned by all three of them.
Indonesian Trademark law allows such an ownership structure.
Article 5 of Law No. 20 of 2016 on Trademarks and Geographical Indications regulates Trademark Applications filed by more than one Applicant who jointly holds the right to the Trademark. In such circumstances, the names of all Applicants must be stated.
The Application may be signed by one Applicant with the written consent of the other Applicants. If the Application is filed through a Representative (IP Consultant), the power of attorney must be signed by all parties entitled to the Trademark.
Accordingly, one Trademark may indeed be registered from the outset under the names of several family members.
When Can Joint Trademark Ownership Be an Option?
The best-case scenario for this structure is a family business that was genuinely established jointly by a relatively limited number of family members who intend to keep the Trademark as an asset directly owned by them together.
For example, three siblings establish a business from scratch. All three are actively involved in the company, and none of them wishes to be designated as the sole owner of the Trademark.
This structure provides a relatively clear representation of ownership: the Trademark genuinely belongs jointly to those family members.
However, the longer the business operates, the more potential issues need to be anticipated:
- What happens if one of the owners wants to leave the business?
- What happens if one of the owners passes away?
- How should decisions concerning Trademark Licensing, Trademark assignment, or enforcement against infringement be made?
- What happens when members of the next generation begin entering the business?
For this reason, joint ownership should not stop at simply listing several names on the Trademark certificate.
The family should consider entering into an agreement regulating, among other things, the decision-making mechanism, use of the Trademark, Trademark maintenance and protection costs, transfer of rights, the entry and exit of family members, and the measures to be taken if one of the owners passes away.
With such arrangements in place, joint ownership is less likely to become a source of uncertainty in the future.
It should also be noted that co-ownership is not the same as a Collective Trademark. A Collective Trademark is a Trademark used for goods and/or services with common characteristics relating to their nature, general features, and quality, including their supervision, which are marketed jointly by several persons or legal entities in order to distinguish them from similar goods and/or services. Minister of Law Regulation No. 5 of 2026 contains separate provisions governing Collective Trademarks.
Option 2: The Trademark Is Owned by the Family Company
The second option is to register the Trademark under the name of a legal entity owned by the family, such as a Limited Liability Company (PT).
Imagine that a family establishes PT XYZ. The father owns 50% of the shares, the mother owns 20%, while each of their two children owns 15%. All business activities are conducted through PT XYZ, and the business’s principal Trademark is also registered under the name of PT XYZ.
In this scenario, it is important to distinguish between two things:
- The shareholders own shares in the company; while
- The Trademark itself is owned by the company.
A Limited Liability Company is a legal entity whose capital is divided into shares. Therefore, if the PT becomes the Applicant and subsequently the Trademark owner, the Trademark becomes an asset owned by the legal entity itself, rather than directly by the individual family members who hold shares in the company.
When Can Company Ownership of the Trademark Be an Option?
This structure may be suitable for a family business that already has a clear corporate structure and intends to maintain business continuity across generations.
One of its main advantages is that Trademark ownership does not necessarily need to change every time the composition of the family or the company’s shareholders changes.
For example:
- In the first generation, the parents hold the majority of the shares.
- Several years later, the shares are gradually transferred to the children.
- The third generation subsequently begins to enter as shareholders.
- As long as the legal entity owning the Trademark remains the same, the Trademark owner also remains the same company.
This is where a fundamental distinction arises compared with direct joint ownership by individual family members.
Under this structure, the question for the future may shift from:
“Who will inherit the Trademark?”
to:
“Who will eventually own and control the company that owns the Trademark?”
This may allow the management of the Trademark portfolio to be more closely integrated with the management of the business itself.
Company ownership may also be relevant where the business has multiple outlets, distributors, franchisees, or business partners, since the use of the Trademark can be regulated as part of the company’s commercial relationships.
However, this structure also has consequences that must be understood.
If the Trademark is an asset of the PT, then the Trademark remains with the company. Changes in control of the company, corporate restructuring, new investments, or other corporate transactions may affect who economically controls the Trademark asset.
Accordingly, the family should not focus only on the Trademark ownership structure. The company’s shareholding structure and corporate governance must also be considered.
Option 3: The Trademark Remains Under the Name of the Parent or Founder and Is Later Inherited
In practice, this is one of the most commonly encountered structures in family businesses. A father or mother may have established the business decades ago and registered the Trademark under his or her own name. As the business develops, the children become increasingly involved.
Even when the company has grown significantly and employs hundreds or even thousands of people, the Trademark certificate may still list the parent or founder as its owner.
Is this ownership structure permitted? Yes, Indonesian Trademark Law expressly provides that rights over a registered Trademark may be transferred or assigned for several reasons, including inheritance and testamentary disposition.
However, such transfer must be submitted for recordal with the Directorate General of Intellectual Property (DGIP).
Minister of Law Regulation No. 5 of 2026 further regulates the supporting documents required for recording such transfers. In relation to inheritance, the relevant supporting documents include documentation concerning the determination of heirs and a will.
When Can an Inherited Trademark Be an Option?
This option may be appropriate for a family business that remains strongly founder-driven, where the Trademark is intended to remain a personal asset of the founder or parent, provided that the family has a very clear plan for the future of the business.
This can be a relatively straightforward structure while the founders remain active and the Trademark owner maintains a strong managerial and family relationship with those operating the business.
However, one important question should be addressed from an early stage:
Is saying “the Trademark will later be inherited by the children” enough?
The answer may be “not necessarily.” When the Trademark owner passes away, the Trademark may form part of the estate that must be settled through the applicable inheritance process.
If there are several heirs, the family should determine in advance who is ultimately expected to hold the Trademark and how the Trademark will continue to be used by the business after the transition to the next generation.
The greater the value of the business, the more important this issue becomes. A family should avoid a situation where a business already operates dozens of branches and has developed a highly valuable Trademark, yet the question of future ownership is only discussed after the founder has passed away.
Important: The Trademark Owner and the Trademark User Do Not Have to Be the Same Party, Provided There Is a Licence
There is another important concept that family businesses should understand. The party that owns the Trademark does not necessarily have to be the same party that conducts the business operations.
Indonesian Trademark Law allows the owner of a registered Trademark to grant a Licence to another party to use the Trademark. The Licence agreement must be submitted for recordal with the DGIP. A Licence agreement that is not recorded has no legal effect against third parties.
For example, the Trademark may remain owned by the parents, while the day-to-day business activities are conducted by a family-owned company/PT that has obtained a Licence to use the Trademark.
Such a structure may be suitable under certain circumstances.
This means that a family business has considerable flexibility in structuring the relationship between the Trademark Owner, Operating Company, and Family Members.
What matters is that the structure is mutually agreed upon and properly documented, rather than existing merely because “those happened to be the names available when the Trademark was first registered.”
Which Option Is Suitable for Your Family Business?
Rather than immediately choosing one of the three structures above, you and your family should first consider several questions:
- Who is currently recorded as the owner of the Trademark?
- Who actually operates and finances the business?
- Does the founder intend to continue personally owning the Trademark?
- Will the business be passed on to one child or several family members?
- Does the company plan to bring in new investors or business partners?
- What will happen to the Trademark if one of the owners passes away?
- Is the company using the Trademark the same party as the registered Trademark owner?
The answers to these questions may result in different ownership structures for different families:
- A family business established by two founders may be comfortable with a co-ownership structure.
- A family business that has already entered its third generation may prefer to place the Trademark under the ownership of the company.
- Meanwhile, a business that remains strongly associated with its founder may choose to retain the Trademark as the founder’s personal asset while establishing a clear inheritance plan.
All of these may be viable options. What matters is having a plan rather than leaving the ownership structure entirely unaddressed.
A family business should not only plan who will lead the company in the next generation. It should also consider how its Trademark, as an Intellectual Property asset that represents the identity and value of the business, will form part of the family’s assets and business continuity in the future.
Need Assistance with Your Family Business’s Trademark Ownership Structure?
Should your family business requires further consultation regarding Trademark ownership structures, recordal of Trademark right assignments, drafting and recordal of Trademark Licence agreements, or the development of an Intellectual Property protection strategy that aligns with the growth of your business and its future generational transition, contact us through the channels below 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.
