Key Proposed Amendments to the Indonesia’s Patent Law
The proposed amendments to Indonesia’s Patent Law, specifically the second revision of Law No. 13 of 2016 on Patents, are designed to modernize the country’s legal framework to better align with the evolving economic environment, international obligations, and the rapid pace of technological advancement. These updates aim to make Indonesia’s Patent System more adaptable and responsive to contemporary needs, while also harmonizing it with international standards. The key focus of the proposed amendments is to align Indonesia’s Patent Regulations with global agreements, such as the TRIPS Agreement under the World Trade Organization (WTO). This alignment is crucial to ensuring that Indonesia’s Patent System meets international standards, thereby enhancing the protection of intellectual property within the country. The proposed amendments also seek to simplify the Patent Registration process, making it more efficient and accessible, which is expected to encourage greater innovation and research. By improving these processes, the government aims to boost Indonesia’s economic competitiveness and attract more investment in research and development. The process of drafting these proposed amendments involved extensive consultation and collaboration. Internal discussions within the Ministry of Law and Human Rights (Kemenkumham), coupled with Focus Group Discussions (FGDs) with various stakeholders, played a significant role in shaping the draft. The Academic Manuscript and draft law underwent continuous refinement, ensuring the proposed changes were well-founded and thoroughly considered. The proposed amendments introduce several critical updates to the Patent Law. One of the most significant changes is the redefinition of what constitutes an invention, particularly in light of new technologies like the Internet of Things (IoT), 5G, and Artificial Intelligence (AI). The novelty grace period has also been extended from six to twelve months, allowing inventors more time to secure their Patents after initial publication. Additionally, the proposed amendments clarify and strengthen the enforcement of Patent Rights, providing clearer guidelines on what constitutes infringement and how it can be addressed. Other important changes include provisions that simplify the Patent Application process and allow for re-examinations, giving the applicants the much needed opportunity to correct or improve their applications post-submission. The proposed amendments also allow Patents to be used as fiduciary guarantees, thereby enhancing their value as financial instruments. Furthermore, the proposed law introduces measures to facilitate the transfer of technology, ensuring that Patents contribute to broader economic and technological growth in Indonesia. We herewith summarize the key proposed amendments for your perusal: Current Patent Law Proposed Amendments 1. DEFINITION OF INVENTION Article 1 (2): Invention means an idea of an inventor embodied into a specific problem solving activity in the field of technology in the form of product or process, or refining and developing product or process. Article 1 (2) to be amended as follows: Invention means an idea of an inventor embodied into a specific problem solving activity in the field of technology in the form of product or process, or refining and developing product and/or process, systems, methods and uses. Reasons: The rapid development of technology, Internet of Things, 5G Technology, Artificial Intelligence, has given rise to different interpretations of the category of invention claims, so that many applications related to this technology have been rejected. Also, to keep up with developments in international practice, it is necessary to change the definition of invention. Adjusting Law Number 6 of 2023 concerning the Stipulation of Government Regulation in Lieu of Law Number 2 of 2022 concerning Job Creation into Law: (1) Addition of the category of Simple Patents “Simple Methods” and (2) Implementation of Patents-methods, systems, and uses. 2. NOT INCLUDE IN INVENTIONS Article 4(c): Inventions do not include: c. rules and methods in conducting activity of: involving mental activity; games; and business. Article 4(c) to be amended as follows: Inventions do not include: c. methods in conducting activity of: involving mental activity; games; and Business. Reason: Rules = Methods Article 4(d): Inventions do not include: d. rules and methods containing only computer program; Article 4(d)to be amended as follows: Inventions do not include: d. computer program; Reasons: Computer Program is fully within the scope of the Copyright Law; Computer Program means a set of instructions that are expressed in the form of languages, codes, schemes, or in any form that is intended for a computer to perform specific functions or to achieve certain outcomes. Inventions implemented on computers, their arrangements are grouped into categories of systems, methods, and uses, in accordance with the expansion of the definition of Inventions to be regulated in the proposed amendment. Article 4(f): Inventions do not include: f. discovery in the form of: new use of existing and/or known product; and/or new forms from existing compound which does not generate significantly enhanced efficacy and contains different relevant known chemical structures to compound. To be repealed Reasons: This article is an obstacle to the industrialization of local drugs that should be able to encourage public welfare, especially in the health sector, in addition to being an incentive award. Causing the local industry that was previously a drug producer to become an industry that only operates as a distributor, or an industry in the form of finished drugs to switch to an industry that only makes the packaging of the drug and not the elements of the drug. Article 9(c): Inventions do not include: c. any theory and method in the field of science and mathematics; To be moved to Article 4(f) Inventions do not include: f. any theory and method in the field of science and mathematics; Reason: Theory and method in the field of science and mathematics are not inventions because they do not fit the definition of invention because they do not solve specific problems in the field of technology. 3. NOVELTY GRACE PERIOD Article 6(1): The Invention is not deemed to have been published provided that within period of 6 (six) month prior to the Filing Date. Article 6(1) to be amended as follows: The Invention is not deemed to have been published provided that within period of 12 (twelve) month prior…