Protecting intellectual property (IP) is crucial for businesses to maintain their competitive edge and avoid significant financial losses. Missteps in IP management can lead to costly legal battles, loss of market exclusivity, and reputational damage. At AFFA Intellectual Property Rights, we have observed how certain oversights can jeopardize a company’s assets. This article highlights common IP mistakes that have cost companies millions and offers guidance on how to avoid them.
- Delaying Trademark Registration, Losing Momentum
Real Case: A major phone company lost its momentum to secure its Mark easily in Indonesia because its former distributor managed to file it first in Indonesia. The company had to challenge the ownership of the Mark before the Court of Commerce. How to Avoid It:- File early — before launching products or entering new markets.
- Have an agreement with potential distributors on IP ownership
- Neglecting International Trademark Protection: Locked Out of Your Brand
Real Case: A fast-growing electric vehicle company faced a legal dispute in East Asia when a local businessman had already registered the company’s brand name. The company had to settle the matter through costly negotiations to enter the market under its own name.How to Avoid It:
- Create a global Trademark filing strategy — especially for key growth markets.
- Use the Madrid Protocol or local filings, depending on your market.
- Rely on local IP experts who understand the nuances of national systems.
- Failing to Record a Trademark License: Legal and Commercial Setbacks
Real Case: Some overseas companies faced delays in distributing certified products because the Trademark they were using, although legally licensed, was not officially recorded with the authorities. Without this, certification bodies could not process mandatory approvals and licenses to be able to operate in Indonesia.How to Avoid It:
- Record all Trademark licenses at the national IP office.
- Work with consultants who understand licensing formalities and draft enforceable agreements.
- Do not assume a signed appointment contract is enough — a specific license agreement will be required.
- Not Using a Patent Locally: Risk of Revocation
Real Case: In several jurisdictions, companies have had their Patents challenged or revoked because the inventions were not “worked” or implemented within the country. This has opened the door to compulsory licensing by third parties.How to Avoid It:
- Prepare a local implementation or commercialization strategy.
- Consider partnerships with local entities to meet legal requirements.
- Monitor “working” obligations in each country where you hold Patents.
Conclusion: Proactive IP Management is Essential
Many companies only realize the importance of IP when it is too late, especially when it comes to Indonesia as a growing market. Indonesia is a challenging country when it comes to IP, but with proper planning, it does not have to be so challenging!
AFFA Intellectual Property Rights has helped businesses across the globe secure and protect their Trademarks, Patents, Industrial Designs, and licenses — both in Indonesia and internationally. From strategic filings to enforcement and compliance, we offer practical solutions that prevent losses before they happen.
Should you need assistance securing or defending your IP in Indonesia or globally, contact AFFA Intellectual Property Rights today at [email protected].
