Protecting a Giant: Why Godzilla Needs Both 3D Mark and Industrial Design Status

Intellectual Property, Trademark, Industrial Design

This November, one of Japan’s oldest Intellectual Property (IP) assets celebrates its 70th anniversary. First introduced as a movie in 1954, Godzilla has since starred in over 40 films and animated series, and its Trademark is protected in more than 30 countries worldwide.   As a giant mutant lizard with many variations, its likeness has also been immortalized in various toys and merchandise, often registered as Industrial Designs to protect them from counterfeiting. However, since Industrial Design protection has a limited duration, Toho, the owner of Godzilla’s IP, has also registered it as a 3D Mark.   What’s the difference? What are the advantages compared to Industrial Designs? Here’s the answer…   Aesthetic Value vs. Distinctiveness   Based on its definition, Industrial Design protects the aesthetic aspects or appearance of a product, such as its shape, pattern, or configuration, which give it a distinctive impression. The focus is on visually appealing elements rather than brand identity. Therefore, Industrial Designs protect the unique design of vehicles, household appliances, and, of course, toys.   On the other hand, a 3D Mark is a mark that protects the three-dimensional shape of a product used to distinguish the goods or services of one party from another. Examples include the Coca-Cola bottle, Lego bricks, Ferrari’s prancing horse, and the PS5 console.   The differences, as well as the advantages and disadvantages of Industrial Designs and 3D Marks, can be summarized in the following table:   Industrial Design 3D Mark Focus of Protection Protects the aesthetics or visual appeal of a product. Protects the identity and function of a Trademark in commerce. Duration of Protection Limited duration, typically 10-15 years, depending on the regulations in a given country. Unlimited duration as long as it is renewed periodically every 10 years. Registration Process & Criteria Must be new and unique in its design. Requires evidence that the shape has a distinctive character and is recognized by consumers as a Trademark. A 3D Mark cannot be registered if the shape has functional value. Advantages The registration process is relatively simpler and quicker. Protection can last indefinitely with periodic renewals. Disadvantages Protection is limited to aesthetic aspects, and the duration cannot be extended. The registration process is more complex and requires significant evidence of use to demonstrate distinctiveness in the market.   Godzilla Needs Longer Protection   From the table above, we can understand why IP assets as old as Godzilla still seek longer protection. Especially considering the increasing hype surrounding Godzilla after winning the 2024 Academy Award/Oscar for Best Visual Effects. This success could lead to an increase in counterfeit products and toys by irresponsible parties.   According to Yahoo Japan and a decision by the Japanese court, Toho’s attempt to register one of Godzilla’s variants, Shin Godzilla, as a 3D Trademark began as early as October 2019. However, after a lengthy process, the Japan Patent Office (JPO) issued a final rejection in March 2024, stating that the registered Godzilla shape was too generic and lacked sufficient distinctiveness.   Toho subsequently filed an appeal in May, emphasizing that the Shin Godzilla design has a strong distinctive character and is widely recognized by the public. This was followed by a review of submitted evidence, including the popularity of Shin Godzilla as a character, its use in various products, and public recognition of the shape as a unique identity, by the court.   3D Mark Shin Godzilla – Application No.: 2020-120003   Finally, on October 30, 2024, the court overturned the JPO’s decision and declared that the 3D shape of Shin Godzilla possesses sufficient distinctiveness and is eligible to be registered as a 3D Mark. The court emphasized that the popularity and widespread recognition of the Shin Godzilla character added significant value to the assessment of its distinctiveness.   As a result, Shin Godzilla has successfully secured the opportunity to get unlimited protection.   This ruling sets an important precedent for 3D Mark protection in Japan, particularly for the entertainment industry and consumer products that rely on unique characters or designs as their brand identity. Previously, iconic characters were typically protected through copyright for creative works, and their names or logos as Trademarks. Now, these characters can also be protected as 3D Marks if proven to have distinctiveness and public recognition as a source identifier.   This strengthens Intellectual Property protection for iconic characters through a layered and complementary approach, depending on the context of their use. Should you need further information regarding trademark registration and protection in Indonesia or worldwide, please contact us via email: [email protected].

Critical for Indonesia Importers: SNI Must Be Registered by the Trademark Owner and the Licensing Agreement Mus Be Recorded to DGIP - AFFA IPR

Critical for Indonesian Importers: SNI Must Be Registered by the Trademark Owner and the Licensing Agreement Must Be Recorded to DGIP

Intellectual Property, Trademark

One of the primary requirements for obtaining a Certificate of Indonesian National Standard (SNI) is the ownership of a valid and registered Trademark with the Directorate General of Intellectual Property (DGIP), whether by a domestic industrial company or a foreign producer. Products intended to be marketed in Indonesia must meet specific standards, including quality and safety requirements, as enforced through the SNI certification.   Thus, having a registered Trademark is no longer optional but necessary for conducting business in Indonesia. A Trademark is a product’s identity and a critical legal protection tool, especially in a highly competitive market. Securing a registered Trademark is a vital initial step for local and international business operators.   Furthermore, business operators who fail to obtain an SNI Certificate for products that are required to have one may face severe penalties, including administrative sanctions such as product distribution bans and product recalls, as well as criminal sanctions such as fines and the revocation of previously issued SNI certifications.   Requirements for Obtaining SNI To obtain an SNI Certificate, business operators must meet several requirements, including: Ownership of a registered Trademark in the appropriate class (e.g., Class 11 for gas stoves). A quality management system that complies with ISO 9001:2015. Adequate production facilities. Product testing at an accredited laboratory.    Registration Process and Eligible Parties for SNI Registration   Domestic Industrial Companies: Local producers holding a valid business license in Indonesia. Can directly apply for an SNI Certificate via SIINas (National Industrial Information System).  Foreign Producers: Must appoint an Authorized Representative in Indonesia to handle certification processes. Applications must be submitted by the Authorized Representative in Indonesia who holds the Trademark License for the product. Additional documents are required, such as a License Agreement and proof of license recordation with the DGIP.   If you are a distributor or importer, please ensure that the products you import have their Trademark registered in Indonesia by the foreign producer and that you have a License Agreement that has been recorded with the DGIP.   To simplify the process and ensure all documents comply with applicable laws in Indonesia, you can utilize the services of a trusted Trademark Consultant to handle all the necessary steps, including:   Registering the Trademark with the DGIP on behalf of the client (foreign producer). Drafting a License Agreement that adheres to Indonesian regulations. Recording the License Agreement with the DGIP to ensure the license has legal enforceability. Assisting clients in managing the documents required for the SNI Certificate, including consultations related to compliance with SNI standards. Should you need further information regarding Trademark registration as a requirement for obtaining an SNI Certificate, feel free to contact us via email at [email protected].

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].  

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…

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].

Legal Implications of Couterfeit Drugs in Indonesia - AFFA IPR

Legal Implications of Counterfeit Drugs in Indonesia

Intellectual Property

According to the World Health Organization (WHO), more than 890 million people worldwide suffer from obesity, driving high demand for weight-loss medications. One of the most popular drugs is Ozempic, produced by Novo Nordisk (NOVOb.CO), which generated nearly $19 billion in net sales last year. Ozempic’s active ingredient, semaglutide, leads to an average weight loss of 15% by reducing food cravings and slowing stomach emptying. However, this success comes with a steep price—over $1,000 for a month’s supply in the U.S.   Despite its effectiveness, the high price of Ozempic has opened the door to counterfeit versions. A fake Ozempic batch number MP5B060 has surfaced in at least 10 countries, from Azerbaijan to North Macedonia. The WHO issued a warning in July 2023 about products carrying this batch number, and Interpol also raised concerns about insulin pens being relabeled and repackaged to resemble Ozempic.   While some countries have banned the affected batch, others have not, leading to dangerous consequences. In at least four countries, fake Ozempic pens have resulted in hospitalizations. For instance, in Iraq, a man fell into a coma after using a counterfeit pen that caused his blood sugar to drop to dangerously low levels.   The Global Impact of Counterfeit Drugs   Since early last year, at least 18 different batch numbers have been found on fake Ozempic pens in 14 countries. Despite warnings, the issue persists because the solution is far from simple. Each legitimate batch of Ozempic contains 280,000 pens, and some countries are reluctant to withdraw entire batches due to the risk of exacerbating drug shortages.   Novo Nordisk has blamed international counterfeit drug syndicates, stating that they easily buy genuine products and replicate the codes to create fake ones. Rather than manufacturing packaging from scratch, these syndicates buy cheaper drugs with similar packaging and relabel them as Ozempic, making it difficult for consumers to identify the difference. This has led to severe health consequences, as unsuspecting buyers end up with insulin rather than semaglutide, leading to severe hypoglycemia.   No Packaging Change: The Ongoing Risk   Novo Nordisk has no immediate plans to change Ozempic’s packaging or register it as a new Industrial Design, stating that counterfeiters would simply find new ways to replicate the new design. This leaves consumers at risk and underscores the importance of being vigilant.   Finally, we must increase our vigilance by implementing the following steps: Only buy from authorized distributors. Always check the batch code to ensure you have a legitimate product. Don’t be tempted by low prices, especially for imported drugs.   If This Happens in Indonesia, What Are the Legal Sanctions?   This situation can be overcome with more decisive action from the supervisory authorities. In Indonesia, for example, there is Indonesia’s National Agency of Drug and Food Control (BPOM), which is proactive in conducting raids and monitoring updates related to counterfeit drug products from abroad; these drugs can be withdrawn from circulation before they harm consumers and damage the reputation of the original product.   BPOM has also been equipped with BPOM Regulation Number 16 of 2023 concerning Supervision of the Distribution of Traditional Medicines, Quasi Drugs, and Health Supplements, which gives them the authority to impose administrative sanctions in the form of cancellation/revocation of distribution permit numbers, Importer recommendations; and/or recommendations of business entities in the marketing sector if the business is proven to receive, store, and/or distribute illegal drugs including counterfeit drugs (Article 23b).   Meanwhile, if viewed from the perspective of the Trademark as regulated in Article 100 Paragraph (2) of Law Number 20 of 2016 concerning Brands and Geographical Indications, anyone who violates another person’s registered Trademark, whose type of goods causes health problems, environmental problems, and/or human death, shall be punished with a maximum imprisonment of 10 (ten) years and/or a maximum fine of IDR 5,000,000,000.00 (five billion rupiah).   Viewed from the perspective of Law Number 8 of 1999 concerning Consumer Protection as regulated in Article 8, where this article expressly prohibits business actors from producing or trading goods that do not meet or violate the required standards, including the sale of counterfeit drugs. Violation of this article can be subject to a maximum imprisonment of 5 years or a maximum fine of IDR 2 billion. Article 19 also states that the seller is responsible for all losses experienced by consumers due to the use of counterfeit products. Consumers have the right to claim compensation, which can be filed through a civil lawsuit.   No less critical, Law Number 17 of 2023 concerning Health, specifically Article 435 states that anyone who produces or distributes Pharmaceutical Preparations and/or Medical Devices that do not meet the standards and/or requirements for safety, efficacy/benefit, and quality as referred to in Article 138 paragraph (2) and paragraph (3) shall be punished with imprisonment for a maximum of 12 (twelve) years or a maximum fine of IDR 5,000,000,000.00 (five billion rupiah).   You might also want to read: Anti-Counterfeiting Methods: Choose the Right Strategy to Get Additional Protection for Your Intellectual Property   Should you need more information on protecting Intellectual Property both domestically and internationally, feel free to contact us at [email protected]. Source: Reuters