How to Determine a Well-Known Trademark in Indonesia According to the Ministry of Law Regulation No. 5 Year 2026?
In today’s globalized and highly competitive marketplace, the concept of a well-known mark plays a critical role in Trademark protection. Unlike ordinary Trademarks, well-known marks enjoy broader legal protection—even across dissimilar goods or services—due to their strong reputation and recognition. Recognizing this importance, Indonesia has refined its legal framework through the Ministry of Law Regulation No. 5 of 2026 on Trademark Registrations (the “Regulation”), which provides clearer, more structured criteria for determining whether a Trademark qualifies as a well-known mark. This article outlines the key factors used under the Regulation to assess well-known mark status in Indonesia. Legal Basis for Well-Known Mark Recognition Under the Regulation, the criteria for determining a well-known mark are stipulated in relation to Article 36 of the Ministry of Law Regulation No. 5 of 2026 on Trademark Registrations. Rather than relying on a single determinant, the Regulation adopts a multi-factor assessment, ensuring that recognition as a well-known mark is based on comprehensive and objective considerations. Key Criteria for Determining a Well-Known Trademark Level of Public Recognition The primary consideration is the extent to which the Trademark is known by the public, particularly within its relevant business sector. A Trademark may be considered well-known if it has achieved: Strong reputation recall. Widespread recognition among consumers. Significant presence in its industry. This factor reflects the fundamental principle that a well-known Trademark must be widely recognized, not merely registered. Sales Volume and Profitability Another key indicator is the commercial success of the Trademark, including: Sales volume of goods and/or services. Profits generated from the use of the Trademark. High commercial performance demonstrates that the Trademark has gained substantial market acceptance and economic value. Market Share The Regulation also considers the market share controlled by the Trademark owner. A dominant or significant market share indicates that: The Trademark is highly competitive. It plays a major role within its industry. This factor highlights the economic influence of the Trademark in the marketplace. Geographical Scope of Use The broader the geographical reach of a Trademark, the stronger its claim to well-known status. This includes: Domestic coverage across Indonesia. International presence in multiple jurisdictions. A Trademark that transcends borders is more likely to be recognized as well-known. Duration of Use Longevity is another important factor. A Trademark that has been used consistently over a long period: Demonstrates stability. Builds consumer trust. Reinforces brand recognition This reflects the cumulative value of time in establishing a reputation. Intensity of Promotion and Investment The Regulation also evaluates the extent of promotional activities, including: Advertising campaigns. Marketing strategies. Investment in brand development. Substantial promotional efforts contribute significantly to building a Trademark’s reputation. Trademark Registrations in Other Countries International registration is a strong supporting factor. If a Trademark is registered in various classes in multiple jurisdictions, it indicates global recognition and strengthens its well-known status. Registrations in developed, advanced markets are seen as more important and carry more weight. Enforcement and Legal Recognition The success of Trademark enforcement actions is also relevant. This includes: Court decisions. Administrative rulings. Official recognition by authorities. A Trademark that has been legally recognized as well-known carries significant evidentiary weight. Inherent Value and Reputation Finally, the Regulation considers the intrinsic value of the Trademark, derived from: Its reputation. Consumer trust. Quality assurance of goods/services This factor reflects the intangible yet critical value of brand equity. A Holistic Assessment Approach It is important to emphasize that the Regulation does not require all criteria to be fulfilled simultaneously. Instead, the determination of a well-known mark is based on a holistic assessment, in which each factor is evaluated in context, and the overall strength of the evidence is considered. This flexible approach allows authorities to adapt to different industries and business models. Implications for Brand Owners The introduction of clear criteria under the Regulation provides greater legal certainty for brand owners. However, it also underscores an important strategic message: “Becoming a well-known mark is not an administrative status—it is the result of sustained business, marketing, and legal efforts.” To strengthen their position, brand owners should: Invest consistently in brand building. Expand market presence. Maintain proper trademark registrations. Actively enforce their rights In the end, the Regulation establishes a comprehensive and structured framework for determining well-known marks in Indonesia. By incorporating factors such as recognition, commercial performance, geographical reach, and legal enforcement, the Regulation ensures that well-known status is granted only to marks with genuine market strength and reputation. For businesses, this serves as a clear reminder that intellectual property—particularly trademarks—is not merely a legal formality, but a strategic asset that must be actively developed, protected, and enforced over time. Should you need further information regarding the protection of well-known marks in Indonesia, please contact us through the channels below and receive a FREE 15-minute consultation: 📩 E-Mail : [email protected] 📞 Book a Call : +62 21 83793812 💬 WhatsApp : +62 812 87000 889 About AFFA: Established in 1999, AFFA Intellectual Property Rights is an Indonesia-based boutique IP law firm serving international brands and innovators, offering full-service support—from prosecution and licensing to enforcement and commercialization—in Indonesia’s dynamic IP landscape. Our firm is widely recognized for its excellence, with accolades including “Best Boutique Law Firm in Indonesia” and “IP Enforcement Firm” at the Indonesia Law Firm Awards 2025 by Asia Business Law Journal, as well as being listed as a “Recommended Firm 2024 — Indonesia” by WTR 1000: The World’s Leading Trademark Professionals. For more information, please visit: www.affa.co.id.