Trademark Filing and Renewal Fees in the US Rise Starting January 2025: What You Need to Know - AFFA IPR

Trademark Filing & Renewal Fees in the U.S. Rise Starting January 2025: What You Need to Know

Intellectual Property, Trademark

The United States Patent and Trademark Office (USPTO) has announced fee adjustments for Trademark filing and renewal, which will take effect on January 18, 2025. These changes include increases in fees for various Trademark-related services, ranging from USD 50 to 150.   If you own a registered Trademark in the United States or plan to file a Trademark there, here are the details of the fee changes:   Application Fees Current New TEAS Standard* USD 350 n/a TEAS Plus** USD 250 n/a Base application (sections 1 and 44), per class n/a USD 350 Application fee filed with WIPO (section 66(a)), per class USD 500 USD 600 Subsequent designation fee filed with WIPO (section 66(a)), per class                                USD 500 USD 600   Surcharge Fees Current New Insufficient information (sections 1 and 44), per class n/a USD 100 Using the free-form text box instead of the Trademark ID Manual within the Trademark Center to identify goods and services (sections 1 and 44), per class n/a USD 200 Each additional group of 1,000 characters in the free-form text box beyond the first 1,000 (sections 1 and 44), per affected class n/a USD 200   Post-Registration Maintenance Fees Current New Section 9 registration renewal application, per class                                                            USD 300 USD 325 Section 8 declaration, per class USD 225 USD 325 Section 15 declaration, per class USD 200 USD 250 Section 71 declaration, per class USD 225 USD 325 Renewal fee filed at WIPO USD 300 USD 325   Petitions and Letters of Protest Fees Current New Petition to the Director USD 250 USD 400 Petition to revive an application                                                                                           USD 150 USD 250 Letter of protest USD 50 USD 150   Intent-to-Use Fees Current New Amendment to allege use (AAU), per class                                                                            USD 100 USD 150 Statement of use (SOU), per class USD 100 USD 150   If possible, you can file a new Trademark application before January 2025 and take advantage of the services of an experienced Trademark Consultant to calculate all potential costs that may arise afterward. By understanding these costs, you can better prepare in advance, ensuring a smooth trademark protection process in the United States.   Make sure not to miss business opportunities and always secure Trademark protection in the United States by registering your Trademark there.   Should you need more information regarding Trademark registration and protection in the United States, please contact us via email: [email protected].   *) Trademark Electronic Application System Standard: A registration scheme with higher fees, suitable for unique goods and/or services with specific descriptions if they are not available in the existing list provided by the USPTO. **) Trademark Electronic Application System Plus: A standard registration scheme that requires applicants to use the list of goods/services already provided by the USPTO.

WIPO's 2024 Report: Indonesia Ranks Among Global Leaders in Trademarks and Design Growth - AFFA IPR

WIPO’s 2024 Report: Indonesia Ranks Among Global Leaders in Trademarks and Design Growth

Intellectual Property

The World Intellectual Property Organization (WIPO) recently released the World Intellectual Property Indicators 2024 (WIPI) report, highlighting the growth performance of Intellectual Property (IP) in 2023. This report provides a comprehensive overview of global trends in IP, covering Patents, Trademarks, Geographical Indications, Industrial Designs, and Plant Variety Protection. It is a vital reference for governments, entrepreneurs, and innovators to understand their country’s position in the global IP landscape.   China, India, Russia, and Indonesia showcased remarkable growth in this report. China leads with 1.64 million Patent applications, accounting for 46% of all Patent applications worldwide. Regarding Trademark and industrial design applications, China also dominated with 7.4 million Trademark applications (approximately 49% of the total global market) and 58% of global industrial design filings. Similarly, China commanded a 54% share in plant variety protection applications.   How Did Indonesia Perform?   While the global average for Trademark applications declined by 2%, Indonesia bucked the trend with a 10% increase in 2023, trailing only Russia (30%) and Mexico (11%). For industrial designs, Indonesia recorded the highest global growth at 37.3%, far surpassing the global average of 2.8%. In absolute numbers, Trademark applications in Indonesia rose from 122,458 to 152,447, and industrial design filings increased from 4,795 to 6,326. These achievements place Indonesia as a Southeast Asian leader, far ahead of Singapore, Malaysia, and Thailand.   Global Rankings: Where Does Indonesia Stand?   Trademark Applications Indonesia ranks 15th globally, behind: China (7,184,831) United States (739,395) Russia (546,455) India (520,862) EUIPO (436,720) Brazil (427,327) Turkey (398,763) United Kingdom (345,205) Japan (328,559) Iran (327,384) South Korea (314,284) France (263,550) Germany (229,793) Mexico (205,867)   Industrial Design Applications Indonesia ranks 19th globally, trailing: China (826,086) EUIPO (116,884) United Kingdom (81,543) United States (60,022) South Korea (59,454) Turkey (58,084) Italy (37,099) Japan (32,061) France (30,023) Germany (29,663) India (28,168) Spain (14,776) Switzerland (11,391) Russia (10,472) Canada (9,037) Australia (8,798) Iran (7,841) Brazil (7,679)   Creative Industries Drive Growth According to the WIPI 2024 report, Indonesia’s growth in Trademarks is largely fueled by MSMEs and the creative economy, while the textile, fashion, and handicraft sectors primarily drive the surge in industrial design filings The data further indicates that the primary purpose of registering Trademarks and industrial designs in Indonesia is to facilitate exports.   Future Potential and Opportunities As public awareness of IP registration continues to grow, Indonesia holds immense potential to become a hub for innovation and intellectual property in the ASEAN region. Strengthening regulations, increasing public education, and fostering collaboration with the private sector can help capitalize on this momentum.   Should you need more information about the registration and protection of Patents, Trademarks, or Industrial Designs, both domestically and internationally, please contact us via email: [email protected].

Indonesia - Adjustment to the IP Services Official Fees Under the Government Regulation No.24 Year 2024 - AFFA IPR

Indonesia – Adjustment to the Intellectual Property Services Official Fees Under the Government Regulation No. 45 Year 2024

Intellectual Property

The Government of the Republic of Indonesia has issued the latest update on the Non-Tax State Revenue for the Ministry of Law and Human Rights under the Government Regulation No. 45 Year 2024. The adjustments cover IP services pertaining Trademark, Geographical Indication Patent, Industrial Design, and Copyright. We herewith provide you the summary of the changes for your perusal and please bear in mind that anything not listed here is not affected.   Trademark and Geographical Indication The items that have been adjusted are as follows:   Type of Action Old Fees New Fees International Registration designating Indonesia CHF 144 CHF 125 International Registration renewal in Indonesia CHF 180 CHF 156 International Registration renewal in Indonesia (within 6-month grace period) CHF 360 CHF 313 Requesting substantive examination for a Geographical Indication application N/A IDR 1,000,000.00   Patent The items that have been adjusted are as follows:   Type of Action Old Fees New Fees Accelerated publication IDR 400,000.00 IDR 500,000.00 Patent substantive examination request IDR 3,000,000.00 IDR 3,500,000.00 Simple patent substantive examination request IDR 500,000.00 iDR 750,000.00 Priority rights document request IDR 300,000.00 IDR 500,000.00 Patent decision appeal request IDR 3,000,000.00 IDR 4,000,000.00 Post-grant correction of description, claim, and/or figures after the patent is granted IDR 3,000,000.00 IDR 4,000,000.00 Post-grant appeal against the decision to grant a patent IDR 3,000,000.00 IDR 4,000,000.00 Patent Board of Appeal decision request N/A IDR 20,000.00 per page   Industrial Design No changes or adjustments were introduced for Industrial Design matters.   Copyright The items that have been adjusted are as follows:   Type of Action Old Fees New Fees Application IDR 400,000.00 OR  IDR 600,000.00 (if software) per creation IDR 200,000.00   Should you have any further questions and queries about the adjustment of official fees, please do not hesitate to contact us at [email protected].  

The Ultimate Guide to the Amendment of the Indonesian Patent Law - AFFA IPR

The Ultimate Guide to the Amendment of the Indonesian Patent Law

Patent, Intellectual Property6 Comments

The Indonesian IP world has just gotten more exciting after the enactment of the Law No. 65 Year 2024 on the Third Amendment to the Law No. 13 Year 2016 on Patents on 28 October 2024. The amendment is designed to be in line with the current technological practices around the world, while at the same time putting a special emphasis on the national interest. It also aims to make Indonesia’s Patent System more adaptable and responsive to contemporary needs.   Please note that as the result of this amendment, several official fees have increased as well. The actions that are subject to the increase include the acceleration of publication, substantive examination request for both invention patent and simple patent, and the appeal before the patent board of appeal/appeal commission. Whereas for recordals (data amendment,  assignment and license), certificate correction, filing and annuity fees remain the same.   The key theme of the amendment is divided into 28 parts below.  Please note that the amendment has the following conditions:   Patent applications that have been submitted and processed but are not yet completed will continue to be processed based on the provisions of patent legislation prior to the enactment of this Law. The protection period for simple patent applications submitted under Law No. 14 of 2001 on Patents and Law No. 13 of 2016 on Patents, as amended by Law No. 6 of 2023 on the Establishment of Government Regulation in Lieu of Law No. 2 of 2022 on Job Creation as Law, is calculated from the Filing Date. Patents granted under Law No. 14 of 2001 on Patents shall remain valid until the end of their protection period.   Should you need more information regarding the proposed amendment of Patent Law in Indonesia, please do not hesitate to contact us via [email protected].  

Unraveling the Global Complexity of IP Crime: Money Laundering and More! AFFA IPR

Unraveling the Global Complexity of IP Crime: Money Laundering and More!

Patent, Intellectual Property, Trademark, Copyright, Industrial Design1 Comment

Intellectual Property (IP) Crime negatively impacts the economy and consumer safety and has become structurally more complex, posing a worldwide threat to economic and social security.   According to the recently released report “Uncovering the Ecosystem of Intellectual Property Crime,” published this October by the European Union Agency for Law Enforcement Cooperation (Europol) and the European Union Intellectual Property Office (EUIPO), it is revealed that 6% of imported products entering the European Union are counterfeit, with a value exceeding 2 billion euros) annually. This figure represents only the seized products, mainly packaging materials, toys, cigarettes, and CDs/DVDs. Imagine if we could account for the undetected counterfeit goods distributed worldwide.   So, why is tackling IP crime so challenging? The report highlights that this form of crime is highly networked and involves corrupt officials, money laundering, and even tax officers. EUIPO labels these facilitators as IP Crime Enablers!   How significant is their role, and how do they perpetuate Intellectual Property crime? Here are the details.   Intellectual Property Crime – The Definition   In the document, “IP Crime” refers to illegal activities involving the theft, infringement, or unauthorized use of Intellectual Property (IP) rights, which include Copyrights, Industrial Designs, Trademarks, Patents, Geographical Indications, and Trade Secrets. The document categorizes IP crime primarily as:   Counterfeiting Manufacturing, importing, distributing, storing, or selling goods that bear the Trademark of a genuine brand without permission. Examples: Counterfeit Pharmaceuticals: Production and distribution of fake pharmaceutical products that can pose severe health risks to consumers. For instance, counterfeit Semaglutide injection pens falsely labeled as containing the active ingredient were found to contain other substances, leading to serious health incidents​. Counterfeit Automotive Parts: The production and distribution of fake automotive parts, like brake pads and wheel rims, infringe Trademarks and pose serious safety risks. Piracy Unauthorized copying, use, reproduction, and distribution of materials protected by IP rights, such as digital media, software, and entertainment. Example: Digital Piracy: Illicit streaming services that distribute copyrighted content (like movies and sports events) without authorization. In one case, a streaming service was operating across multiple countries, generating significant revenue through illegal broadcasts​.   The Mechanics of IP Crime   IP criminals exploit weaknesses in the global supply chain, legal loopholes, and infrastructure to operate with resilience and evade law enforcement efforts. This structured approach allows them to profit significantly while remaining difficult to prosecute due to their operations’ multi-jurisdictional and often hidden nature. The structured process criminal networks use to conduct IP crimes ranges from obtaining infringing items to laundering the proceeds. Here are the key phases:   Infringing IP Rights (Acquisition Phase) This is the initial stage where IP rights are intentionally violated. Criminals produce counterfeit goods by replicating brand logos, labels, or pirated content. This phase may involve either manufacturing counterfeit products directly or diverting legitimate products from the supply chain. Common sources for counterfeit goods include China, Hong Kong, and Türkiye. Transportation and Distribution Phase After acquiring the counterfeit items, networks transport them globally, often abusing the legal logistical and shipping sectors to move goods across borders. Criminals use sophisticated smuggling techniques, including splitting shipments and hiding counterfeit items within legitimate products to avoid detection. Marketing and Retail Phase Criminals use both online and offline methods to market and sell counterfeit products. Online marketplaces, social media platforms, and even the dark web provide anonymity and access to large audiences. Offline, counterfeit goods may also be sold through physical retail outlets or open markets. Dealing with Profits and Risks (Money-Laundering Phase) The final stage involves managing the profits from these illegal sales. Criminal networks employ money laundering techniques to disguise the origins of their profits. This includes investing in legal businesses, conducting physical cash transfers, or using complex digital financial systems to reintegrate funds into the economy.   Parties Also Involved in Intellectual Property Crimes In addition to the 4 (four) phases of crime above, Europol and EUIPO mapped the parties involved in IP crimes, making these crimes complex and challenging to eradicate.   Criminal Enablers These are illegal activities or crimes that help facilitate IP crime: Corruption: Bribery or manipulation within organizations to ease illegal processes. Forced Labour: Exploitation of labor, often under inhumane conditions, to produce counterfeit goods. Cybercrime: Digital crimes that support IP crime, such as phishing, malware, or data theft. Money Laundering: Concealing the profits from IP crime by converting illegal earnings into legitimate assets. Document Fraud: Creating fake documents to disguise the origin or legitimacy of counterfeit goods. Environmental Crime (Envicrime): Illegal activities that harm the environment, often associated with the improper disposal of waste from counterfeit production. Non-Criminal Enablers These are lawful activities or structures that criminals misuse to facilitate IP crime: Professional Expertise: Use of skills from professionals (e.g., lawyers, technicians) to support illegal IP activities. Use of Legal Business Structures (LBS): Legal businesses that provide a front for illegal IP activities, such as follows: Trading Companies or Factories These legitimate businesses can be set up or inserted into the supply chain to disguise the production or distribution of counterfeit goods. Factories or production sites can be used to produce counterfeit goods under the guise of legitimate products. Warehouses or Logistics Service Providers Legitimate warehouses or logistics companies can be used to store or transport counterfeit goods without raising suspicion. For example, counterfeit goods can be hidden among legitimate products in international shipments. Physical Retail Stores Appearing legitimate stores can be used to sell counterfeit goods to consumers without their knowledge. Counterfeit goods can be sold alongside legitimate products, making it difficult for consumers to tell the difference. Online Stores or Marketplace Platforms Many IP criminals use e-commerce websites or accounts on platforms like Amazon, eBay, or social media to sell counterfeit products. These platforms often give the impression of a legitimate business, making it easier for criminals to reach consumers at a wide range. Front or Shell Companies These companies are technically legitimate but serve only as a front for illegal activity. They are often used to launder money…

Geographical Indications for Indonesian Cuisine: Untapped Potential - AFFA IPR

Geographical Indications for Indonesian Cuisine: Untapped Potential

Intellectual Property, Geographical Indication1 Comment

According to data from the Ministry of Tourism and Creative Economy of the Republic of Indonesia, Culinary tourism accounts for about 30-40% of tourists’ total spending during their visit across the country. Names such as Kopi Gayo (Gayo Coffee), Kripik Sanjay (Sanjay Hot Chips), Sate Padang (Padang Satay), Pempek Palembang, Dodol Garut, Tahu Sumedang (Sumedang Tofu), Lumpia Semarang, Soto Madura, Bali Peanuts, and many more have become signature souvenirs that must be purchased when visiting these destinations.   These popular culinary products also bolster the local economy, as most originate from Small and Medium Enterprises (SMEs) that play a vital role in job creation and increasing local income. However, one untapped potential for these regional-based culinary items is their registration as Intellectual Property, specifically as Geographical Indications.   So, why have people yet to do this? What are the obstacles? And what’s the difference between a Trademark and a Geographical Indication in Indonesia? Here’s the explanation…   Legal Basis for Geographical Indications in Indonesia   Geographical Indications, along with Trademarks, are regulated by Indonesian Law No. 20 of 2016 on Trademarks and Geographical Indications (Trademark and GI Law). The law defines:   “A Geographical Indication is a sign indicating the origin of goods and/or products from a certain area that, due to geographical factors such as natural elements, human factors, or a combination of both, gives the goods and/or products a specific reputation, quality, and characteristics.”   Article 53 of the Trademark and GI Law:  The applicant can be the provincial or district/city government or an organization representing the community in a specific geographical area involved in producing goods and/or products such as:   natural resources; handicrafts; or industrial goods.   Thus, if a natural product like coffee, cloves, nutmeg, shrimp, pearls, woven goods, batik, or traditional cuisine comes from a specific geographic area, as long as it doesn’t conflict with national ideology, laws, morality, religion, decency, and public order, isn’t misleading, and is not the name of a plant variety (unless paired with a geographic indication term), it can be registered as a Geographical Indication.   Benefits of Geographical Indications   Registering a product as a Geographical Indication (GI) offers many benefits, particularly for local producers and communities involved in the production. Here are some of the main benefits of GI registration:   Legal Protection for Name Usage One of the most significant benefits of registering a product as a GI is legal protection over using the product’s name. GI registration ensures that only producers from the specified geographic area and those who meet specific production standards can use the name. This prevents others outside the area or those not adhering to the standards from using the GI name indiscriminately.For example, only producers from Garut who meet the standards can use the name “Dodol Garut.” This helps maintain the product’s reputation and quality in the market, ensuring it meets consumer expectations for taste. Increases Product Value and CompetitivenessProducts registered as GIs usually have higher market value due to their reputation associated with a particular area and recognized quality. Consumers are often willing to pay more for products known for their specific geographic origin, associating them with quality, uniqueness, and tradition. This enhances the product’s competitiveness in both domestic and international markets.For instance, Gayo Arabica Coffee, registered as a GI in 2018 by the Directorate General of Intellectual Property (DGIP), has a premium quality reputation in international markets, boosting demand and selling prices.   Preserves Tradition and Local KnowledgeGI registration helps preserve traditional knowledge and production techniques passed down through generations. The standards set in GI registration often include conventional production methods, ensuring producers adhere to established practices, thereby preserving the tradition.For example, “Tenun Ikat Sikka” (Sikka Traditional Weaving) from East Nusa Tenggara, registered in 2018 by DGIP, guarantees that every weaving product is crafted by local communities who consistently maintain their unique production techniques and cultural identity. Boosts Local EconomyRegistering a product as a GI can drive the local economy, from increasing product demand to making it a tourist destination. With GI recognition, local producers can better market their products domestically and internationally. Ultimately, communities’ incomes dependent on the product can increase, especially if they manage the production center as a tourist destination that offers added value for visitors.For example, Kintamani Arabica Coffee from Bali registered as a GI, has significantly boosted the economic standing of coffee farmers in the area. Builds International Reputation and BrandingProducts registered as GIs are typically easier to promote in international markets due to their reputation linked to a specific geographic area. GIs help products gain global recognition and become stronger brands. Moreover, GI registration protects products from unauthorized use in international markets.Today, Indonesia is recognized as a high-quality coffee producer. Over 50 coffee-related Geographical Indications are registered with DGIP, making it the dominant GI category. Prevents Counterfeiting and FraudThe legal protection a Geographical Indication provides prevents the growth of counterfeit or lower-quality products using the same name to exploit the registered product’s reputation. This safeguards the original product’s quality and integrity in the eyes of consumers, protects the original producers from losses, and prevents consumers from being deceived.For example, if “Sumedang Tofu” were registered as a GI, it could prevent parties outside Sumedang from using the name without permission or failing to meet production standards. Strengthens Consumer RelationshipsConsumers tend to trust GI-registered products because they know the product is made to specific standards and has unique characteristics tied to its geographic origin. This helps build trust between producers and consumers, which is key for long-term success.Why Have Many Local Culinary Products Not Been Registered as GIs?   There are several reasons why culinary delights like Padang Satay, Sumedang Tofu, and Madura Soto have not been registered as Geographical Indications (GI) despite their significant potential as distinct regional products:   Lack of Awareness or Knowledge About Geographical IndicationsMany local producers, organizations, or even local governments may need to fully realize the potential benefits of Geographic Indication protection. Coordination Required for RegistrationGI registration requires…

Indonesia Climbs 7 Spots in Global Innovation Index 2024: What's Fueling the Rise? - AFFA IPR

Indonesia Climbs 7 Spots in Global Innovation Index 2024: What’s Fueling the Rise?

Industrial Design

The Global Innovation Index (GII) is an annual report published by the World Intellectual Property Organization (WIPO), in collaboration with Cornell University, USA, and the Institut Européen d’Administration des Affaires (INSEAD), France. This index ranks countries based on innovation capacity and performance, using more than 80 indicators covering innovation inputs (such as institutions, human resources, and infrastructure) and outputs (such as research outcomes, technology, and creative products). This index is a crucial benchmark, as innovation is a primary driver of economic development, especially in knowledge-based economies. Intellectual Property (IP) is a critical component of this innovation ecosystem.   With effective IP protection and management, countries can create new technologies, enhance competitiveness in global markets, and provide incentives for inventors and creators to continue innovating. IP ensures that innovation results are protected from easy duplication or misuse while offering economic benefits to innovators through Copyright, Patents, Trademarks, and Industrial Designs.   Rising from Rank 61 to 54  This year (2024), Indonesia has experienced a significant improvement, climbing from rank 61 in 2023 to rank 54, closely trailing the Philippines at 53. Several key factors drove this rise:   Policy Stability for Doing Business Measures how the government ensures a stable policy environment for business activities. This indicator is based on perceptions of policy stability measured through surveys. Entrepreneurship Policies and Culture Assesses policies that support entrepreneurship and a culture that encourages domestic entrepreneurial activity. This indicator reflects support for the establishment and growth of new ventures. Finance for Startups and Scaleups Measures the availability of financial capital for startups and business development, including access to venture capital and other financial instruments that support startup growth and business expansion. Domestic Market Scale Measures the domestic market size based on Gross Domestic Product (GDP) and National Income. This indicator highlights the domestic market’s potential for innovative products and services. University-Industry R&D Collaboration Assesses the level of research and development collaboration between universities and industries, reflecting the integration of academic and industrial sectors in generating innovation. State of Cluster Development Measures the level of development of industrial and technology clusters, including coordination between companies and institutions within clusters to enhance innovation and growth. Software Spending Measures total corporate spending on software, indicating investments in IT solutions that support operations and innovation.   However, Indonesia still lags in several indicators, including: Expenditure on Education Reflects government spending on education per student, indicating the priority of education in the national budget allocation. Government Funding per Pupil Measures government funds allocated per student, reflecting the nation’s investment in human capital development through education. Tertiary Inbound Mobility Measures the number of international students enrolled in domestic higher education institutions, indicating the global attractiveness of the nation’s universities. Firms Offering Formal Training Reflects the percentage of companies providing formal employee training, indicating corporate investment in employee skill development. Scientific and Technical Articles Measures the number of scientific and technical publications, reflecting a country’s research output and innovation capacity.   These factors still place Indonesia behind other ASEAN countries like Singapore (rank 4), Malaysia (33), Thailand (41), Vietnam (44), and the Philippines (53).   A significant difference between Indonesia and the Philippines lies in the strength of innovation output. The Philippines excels in High-Tech Manufacturing, Production and Export Complexity, High-Tech Exports, ICT Services Exports, and Creative Goods Exports. Compared to Malaysia, they outperform Indonesia in the number of Graduates in Science and Engineering, University Rankings, and Domestic Credit to the Private Sector.   Indonesia still needs to work on competing with these nations, mainly when its weaknesses lie in fundamental categories such as government spending and educational budgets, particularly at the primary level. However, Indonesia’s improved investment climate, marked by the growth of startups and solid indicators for stable government policies, reflects its commitment to creating a better business environment. Should you need further information related to innovation, Patents, or other Intellectual Property protection in Indonesia, feel free to contact us via email: [email protected].

Trademark Freeriding Legal Risks and Solutions in Indonesia - AFFA IPR

Trademark Freeriding: Legal Risks & Solutions in Indonesia

Intellectual Property, Copyright1 Comment

According to the Indonesian Dictionary (KBBI), hitchhiking is participating (eating, riding in a vehicle, etc.) without paying. This word is used in colloquial language and is often associated with someone taking advantage of an opportunity without any contribution or cost.   Freeriding Trademarks are also often carried out to take advantage of the popularity of an existing Trademark or even a Well-known Mark to increase exposure and make it easier to sell. For example, opening a ramen shop with a logo that resembles and displays the Ultraman character, opening an amusement park called Squid Game, or opening a car rental business and naming it Gulfstream.   Is this practice justified? What are the legal consequences for the hitchhiker and the actual owner?   A Trademark is the Exclusive Right of the Trademark Holder   Exclusive Trademark Rights are rights granted to Trademark Holders who have been officially registered to use the Trademark in the trade of goods or services. These Exclusive Rights allow the holder to prohibit other parties from using the same or similar Trademark for goods and/or services in the same class without permission.   In Indonesia, Trademarks as Exclusive Rights are regulated in Article 1 of Law Number 20 of 2016 concerning Trademarks and Geographical Indications (Trademark Law), where registered Trademark Holders have Exclusive Rights for a certain period by using the Trademark themselves or granting permission to other parties to use it. Thus, Trademark Holders can prohibit other parties who, without permission, use the same Trademark on the same goods and/or services, Trademarks that are the same as their registered Trademark on the same goods and/or services, or Trademarks that are the same or basically the same as their registered trademark for similar goods and/or services.   Thus, if another party without permission utilizes the existence of a registered Trademark, it can be considered a Trademark violation.   Sanctions for Trademark Violators   For the use of a Trademark without permission, Article 100 of the Trademark Law regulates criminal sanctions of imprisonment and/or fines as follows:   Using the same Trademark: A maximum of 5 years in prison and/or a maximum fine of IDR 2 billion. Using a similar Trademark: A maximum of 4 years in prison and/or a maximum fine of IDR 2 billion.   Legal Ways to Freeriding on Registered Trademarks   Several steps can be taken to use a Registered Trademark in Indonesia legally. These steps are as follows:   Trademark License: The most common step is to obtain a license from the registered Trademark owner. This license is an agreement between the Trademark Owner (Licensor) and the Other Party (Licensee), which grants the Licensee the right to use the Trademark according to the agreed terms. To obtain it, you must contact the Trademark Owner and negotiate and sign a License Agreement determining the scope of use, duration, territorial coverage, and exclusivity. Franchise Agreement: If the registered Trademark is part of a Franchise, you can join it through the available Franchise Agreement. Through this agreement, the franchisor will grant you (the franchisee) the right to use the Trademark and its business system. Usually, a Franchise also involves transferring business knowledge, training, and operational support.You might also want to read: Similar But Not The Same – The Difference Between Franchising and Licensing in Indonesia   Co-Own of a Trademark: Sometimes, two or more parties may agree to use a Trademark together. This requires a detailed agreement and ensures that all parties understand their rights and obligations, including how the Trademark will be managed. If this joint use results in a change of ownership, you must submit the change to the Directorate General of Intellectual Property (DGIP) or through a reliable Trademark Consultant. Trademark Transfer: Another alternative is to purchase the rights to the Trademark from the current owner, the provisions of which are regulated in the Trademark Transfer. Uniquely, the Trademark can be transferred while still in the application process status, provided that the deed of transfer that the notary has legalized is recorded at the DGIP to be fully binding. The transfer must cover all classes of goods and/or services of the transferred Trademark. File a Trademark Cancelation Action: If you believe the previous owner has not used the Trademark you will use for 5 (five) consecutive years, then you can appoint an experienced Trademark Consultant to file a Trademark Cancelation Action with the Commercial Court. The Panel of Judges will then order DGIP to delete the Trademark you wish to use. However, you have also submitted a registration application for the Trademark you want to use.   You might also want to read: A Win for the “WIN” – AFFA Represents Hongyunhonghe Tobacco (Group) Co. Ltd. for a Successful Trademark Non-Use Cancellation in Indonesia Should you need more information about Trademark protection or registration in Indonesia and/or abroad, do not hesitate to contact us through email: [email protected].

The Legal Risks of Selling (Unauthorized) T-Shirts with Popular Character Images - AFFA IPR

The Legal Risks of Selling (Unauthorized) T-Shirts with Popular Character Images

Intellectual Property, Copyright1 Comment

We can still easily find t-shirts with popular character images in small stores, shopping centers, exhibitions, and e-commerce in Indonesia. For those of you who are fans of popular culture from within and outside the country, the presence of t-shirts with characters that you like, sometimes with attractive designs, and also at low prices, is very tempting to buy.   But what if these t-shirts are not licensed or use the images without permission? Are there any legal consequences for the buyer? Here is the discussion from the Intellectual Property law perspective that applies in Indonesia.   Legal Standing   Article 40 of Law Number 28 of 2014 (Copyright Law) has recognized that works of fine art in all forms, such as paintings, drawings, carvings, calligraphy, sculptures, statues, or collages, photographic works, to cinematographic works that are closely related to popular culture, are protected creations. Therefore, the state guarantees that Exclusive Rights consisting of Moral Rights and Economic Rights are given only to the Work’s Creator, Copyright Holder, and/or Related Rights Owner.   This Copyright Law also covers all works or Creations and/or Related Rights products and users of Creations and/or Related Rights products from Indonesian Citizens and non-Indonesian citizens, non-Indonesian residents, or those who are not Indonesian legal entities, with the following provisions: Their country has a bilateral agreement with the Republic of Indonesia regarding the protection of Copyright and Related Rights; or Their country and the Republic of Indonesia are parties or participants in the same multilateral agreement regarding Copyright and Related Rights protection.   The point is that it is inevitable that all works born from popular culture originating from abroad will be recognized as copyrighted in Indonesia. Therefore, all activities of utilization, duplication, distribution, and commercialization must have the permission of the Creator, Copyright Holder, and/or Related Rights Owner. Otherwise, it will be categorized as piracy!   This piracy is regulated explicitly in Article 1 of the Copyright Law, where it is clear that what is meant by Piracy is the unauthorized duplication of Creations and/or Related Rights products and the widespread distribution of the resulting duplication goods to obtain economic benefits.   Penalties for Piracy   Article 113 Paragraph (4) of the Copyright Law states explicitly that “Any person who fulfills the elements as referred to in paragraph (3), which is carried out in the form of piracy, shall be punished with imprisonment for a maximum of 10 (ten) years and/or a maximum fine of Rp. 4,000,000,000.00 (four billion rupiah).”   Terrible sanctions, right? Unfortunately, this criminal threat has not been appropriately socialized because many still do not understand the term piracy. There is even a glorification for successful SMEs by commercializing the use of characters protected by copyright without permission. Finally, this Piracy activity continues rampant without understanding its negative impacts. In fact, Copyright is important to protect.   You might also want to read: Media Missteps: 5 Intellectual Property Blunders to Avoid   5 Reasons Why Copyright is Important Copyright protection is an important part of the legal system that supports economic justice and innovation, with the following details:   Respecting Creators: Protecting copyright ensures that creators of works receive proper recognition and compensation for their work. This provides an incentive to continue innovating and creating. Encouraging Creativity: With copyright protection, individuals and companies are more likely to invest time and resources in creating new works because they can expect a return. Regulating the Use of Works: Copyright gives owners control over how their work is used, shared, or modified, helping to prevent misuse or unauthorized use. Economic Growth: Copyright supports the creative industry, significantly contributing to economic growth through job creation and tax revenue. Consumer Protection: It helps ensure that consumers get original, high-quality products, not imitations or pirated goods.   Therefore, if piracy occurs, all of the above points will be disrupted, from a low appreciation for creators, stagnant creativity, weak distribution supervision, and low product quality to worsening Indonesia’s ranking in the International Intellectual Property Index.   Your Contribution is Needed   If you have already bought a pirated t-shirt, you don’t need to worry about legal sanctions. Because in Indonesia, criminal sanctions are mainly aimed at those who produce, distribute, or sell pirated goods, not at buyers. The Indonesian Copyright Law focuses on parties who actively violate Copyright by reproducing, producing, or distributing works without the permission of the Copyright Holder.   However, although buyers of pirated goods are generally not faced with criminal sanctions, buying pirated goods is unethical because it supports an illegal industry that harms the original Creators and the creative industry. Buying pirated goods can also harm consumers because the goods often do not meet quality and safety standards.   You must realize that choosing legitimate and licensed products is the best way to support Creators and ensure that the products received are safe and of good quality. In addition, buying original products contributes to healthy economic growth and innovation for society.   You might also want to read: Intellectual Property Infringements in Indonesia: A Closer Look at Online Hypocrisy Should you need further information regarding Copyright protection in Indonesia, you can contact us via email: [email protected].