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Govt to streamline registration of trademarks

Govt to streamline registration of trademarks

The Law and Human Rights Ministry expects to streamline procedures to register trademarks in the hope of slashing the time needed for businesses to gain official recognition of their brands.

"Such an improvement is part of the implementation of Law and Human Rights Ministry Regulation No. 67/2016 on Brand Registration," the ministry’s trademark and geographical indication director, Fathlurachman, said Friday, as quoted by kontan.co.id.

The regulation is based on Law No. 20/2016 on trademarks, passed by lawmakers in November last year. The ministerial regulation would provide guidelines to, for example, deal with trademark disputes, Fathlurachman said.

Under current trademark registration procedures, applicants need to wait between 12 and 18 months to secure official recognition of their brands. The necessary procedures include document validation and a three-month time window during the public is invited to challenge the originality of the brand being registered

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Indonesia among the worst mercantilists?

Indonesia among the worst mercantilists?

According to the Information Technology and Innovation Foundation based in Washington, DC, Indonesia is among the countries that turn to “innovation mercantilism”, which is a strategy imposing protectionist and tradedistorting policies. The thing is, while it may sound favorable for Indonesia in the short-term, it can be quite damaging to both the country and overall global innovation and productivity.

The idea of mercantilism itself is noble: a country can increase its citizens’ prosperity by running a favorable balance of trade. Adam Smith first coined the term “mercantile system” to describe a system in which the political economy is designed to enrich the country by limiting imports and increasing exports.

This idea further influenced international trade policies in Europe from the 16th to the 18th centuries. In 2016, according to ITIF, in addition to Indonesia, countries that were notorious for its mercantilism included: China, Russia, Turkey, Vietnam and Germany.

The two mercantilist policies introduced in Indonesia that raised some analysts’ eyebrows were: 1) forced local data-storage requirements for Internetbased over-the-top (OTT) content providers and 2) a patent law amendment undermining pharmaceutical intellectual property and forcing local production and technology transfers.

On March 31 last year, Indonesia’s Communications and Information Ministry issued Circular Letter No. 3, which notifies companies about new regulations for OTT services, such as requirements for forced data localization and the need for foreign OTT firms to establish a permanent office in Indonesia as a condition of market entry. In other words, it would be impossible for foreign OTT content providers to receive online traffic from Indonesia without being blocked unless they have an office in Indonesia and store their data locally.

Later on Aug. 28 Indonesia introduced an amendment to its Patent Law that includes vague and potentially expansive compulsory licensing that would undermine pharmaceutical intellectual property. It could be misused to force foreign companies to produce locally and transfer their technology and intellectual property.

By “compulsory licenses”, it refers to when a government permits another party to produce a patented product without the consent of the patent owner. It should not be used as industrial policy, for the repercussions can be tremendous, not only economically but also humanistically.

The arguments for opposing the above mercantilist policies in Indonesia are two-fold.

First, disruptive innovations require an ecosystem that supports the research and development of businesses to innovate. Today, the most disruptive innovations come from high-tech industries, including life sciences, renewable energy, computers and electronics and internet services.

By limiting data storage in Indonesia, innovators’ choices for the most reliable and the most suitable technology are also limited. With Indonesia’s technology infrastructure still maturing, it would be unfair to both domestic and foreign innovators based in Indonesia and globally, as they cannot grow as fast as their competitors that are based in countries with better internet infrastructure.

Second, advanced pharmaceutical research and development require the support of international experts and facilities. The amended patent law has made Indonesia less attractive for international pharmaceutical research and development.

Enforcing a patent law amendment that includes “compulsory licenses” can be misused to limit advanced research and development, including replacing imports of high-quality and rare raw materials from overseas. It also includes “increased meaningful benefit” criterion that would prevent innovations that build upon prior knowledge for new treatments, dosages and delivery mechanisms.

At last, let us reiterate that innovation, trade policy and intellectual property law have become so intertwined today. A good balancing act must be performed to ensure disruptive innovations that are essential for the advancement of human civilization are properly protected by intellectual property laws and trade policies.

The fate of many people’s lives is directly impacted by mercantilism or lack of it. How Indonesia’s mercantilism would affect the global innovativeness remains to be seen.

Jennie M Xue

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Technology and intellectual property in Indonesia

Technology and intellectual property in Indonesia

We can say that the first technology was a rock. People in prehistoric times used rocks to make fire. From a rock to a cellular phone, laptop, PC, computer, TV and all the latest technology that help us improve our daily lives. Technology can also link us into social media and help us communicate with each other.

Meanwhile, trade involves the transfer of the ownership of goods and/or services.

Nowadays, there is an International Association for Technology Trade (IATT), which is a consortium of technology organizations, strategic advisors, government agencies and corporate members seeking to generate successful global business opportunities with a key focus on emerging economies.

The association runs ongoing trade missions to developing regions, sponsors and co-promotes conferences and symposia, and provides strategic services to companies entering and expanding into emerging markets.

We have to realize that the technology trade can influence almost all businesses in the world.

The technology trade is also very good for businesses, it can bring profits and benefits and of course national progress.

We can link the intellectual property system with the creations of the mind, such as inventions, literary and artistic works, designs, symbols, names and images that are used in commerce.

Intellectual property is protected by intellectual property law, for example, patents, copyrights, industrial designs and trademarks, which enable people to earn recognition or financial benefits from that which they have invented or created. By striking the right balance between the interests of inventors and the wider public interest, the intellectual property system aims to foster an environment in which creativity and innovation can flourish.

People talk a lot in the technology trade about the intellectual property system but what is it? How does it apply to the technology trade? The intellectual property system is the foundation of the technology trade.

The term refers to the system that can give legal protection to the technology trade itself.

Therefore, it is clear that the technology trade is linked to the intellectual property system.

The intellectual property system is designed not only for legal protection but also to appreciate the creator or the inventor. A good intellectual property system will contribute to the promotion of technological innovation and to the transfer and dissemination of technology, to the mutual advantage of producers and users of technological knowledge and in a manner conducive to social and economic welfare and also to a balance of rights and obligations.

Indonesia is a member of the World Trade Organization (WTO), and has ratified the Agreement on Trade-related Aspects of Intellectual Property (TRIPs Agreement).

Indonesia has also ratified the Paris Convention. It means that, generally speaking, Indonesia'€™s intellectual property legislation is now comprehensive, covering all aspects of protection of intellectual property in accordance with international standards, however, enforcement mechanisms still need to
be strengthened.

Since signing the TRIPs Agreement in 1994, Indonesia had 10 years under the agreement to harmonize all of its intellectual property laws, including launching new laws for other sectors of intellectual property such as trade secrets, industrial designs and integrated circuit lay-outs. All of these laws were required to be on the books by the end of 2004 at the latest. By 2000, Indonesia had enacted three new laws: Law No. 30 on trade secrets, Law No. 31 on industrial designs and No. 32 on integrated circuit lay-outs.

Meanwhile, the three existing laws on copyrights, trademarks and patents also had to be adjusted to accord with the TRIP'€™s requirements. The copyright, patent and trademark laws have been revised with the new laws No. 14 and No. 15 of 2001 on patents and trademarks respectively, while copyright law was revised in 2002 by Law No. 19 and was revised again in 2014 by Law No. 28.

Indeed, Indonesia'€™s intellectual property law is now comprehensive, covering all aspects of protection of intellectual property in accordance with international standards, even though enforcement mechanisms still need strengthening.

Now thanks to the improved Indonesian intellectual property system, the government can maximize the utilization of the technology trade through the Agency for Assessment and Application of Technology (BPPT).

The BPPT mission is to boost engineering technology by improving the competitiveness of industrial products, improving public service agencies and reinforcing the nation'€™s independence.

The government can also maximize the utilization of the technology trade through the Indonesian Institute of Sciences (LIPI), whose main duty is to carry out scientific research in accordance with the provisions of legislation in force.

In sum, a good intellectual property system can lead Indonesia, and other countries, to transfer, learn and master technology well.

 

Damar Swarno Dwipo

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Indonesia’s new patent law: A challenge to prosperity

Indonesia's new patent law: A challenge to prosperity

The reappointment of internationally respected Sri Mulyani Indrawati as finance minister shows that President Joko “Jokowi” Widodo is serious about economic reform.

Top of the former World Bank official’s in tray is fiscal stability. Longer term, she will target new sources of economic growth to counter the country’s reliance on natural resources and avoid the looming middle-income trap.

Economists generally agree that sustainable economic growth depends on higher value services, manufacturing, research and development (R&D), and less reliance on commodities and natural resources.

Indonesia’s domestic manufacturing sector is basic, focused on the low-value assembly of products designed and manufactured elsewhere. It generates low-quality jobs and little economic value or tax revenue.

China has amply shown that economic growth cannot be sustained by low-wage, low-skilled manufacturing.

For Indonesia to join the ranks of high-income countries in the longer term it needs to start building a knowledge economy.

These industries – such as biopharmaceuticals, information technology, chemicals and entertainment – underpin sustainable growth and employment in the economies of high-income countries.

Take the United States. In 1975, 83 percent of the market value of its 500 biggest companies comprised “tangible” products and services, in areas such as manufacturing, agriculture and commodities. Much like Indonesia today.

Today, the reverse is true. By 2015, 85 percent of the value of these companies came from “intangible assets”. Simply put, the most successful US companies make almost all their money through ideas, concepts, brands and innovative products and processes.

Advanced Asian economies – Japan, South Korea, Singapore and Taiwan – have taken this path, moving over recent decades from agriculture to manufacturing to knowledge-based industries.

The Indonesian government and Asian Development Bank (ADB) recognize that the knowledge economy is vital for Indonesia’s future growth. “Building up knowledge-oriented sectors and processes is crucial for continued high growth and strengthening Indonesia’s position in ASEAN,” said Bindu N. Lohani, ADB’s vice president for knowledge management and sustainable development.

The government’s early steps to stimulate this activity include pledging to reduce red tape and improve the business climate. Education and ICT infrastructure must improve too, it has said.

Few countries have developed thriving knowledge-based industries purely from domestic resources. Scientific knowledge, technological know-how and the required R&D capital are dispersed globally.

Gone are the days when one R&D company, for example industrial giant General Electric or tech behemoth Samsung, created products in-house from start to finish.

Today, multinational companies collaborate with small companies, academia and the public sector at all stages of the R&D cycle, often across borders.

Indonesia’s challenge is to become a meaningful participant in this new world of networked innovation. It must attract innovative multinational companies to its shores, bringing with them the capital, skills and technological know-how that Indonesia may be missing.

The potential prize is enormous: China now captures more foreign direct investment in R&D than the US. The pharmaceuticals sector leads the way with investments totaling $1.6 billion between 2010 and 2015, according to FDI Markets.

Above all, foreign investors need certainty over their intellectual property rights, including clearly defined and easily enforceable patent rights. If this protection is weak, companies will be unlikely to invest or enter into local partnerships. They will not launch innovative new products for fear of having their rights compromised.

Indonesia has intellectual property basics in place, in line with its World Trade Organization commitments. These include making available patent terms of 20 years for all inventions. It has also shown the political will to fight piracy and other international property rights violations.

But Indonesia’s patent bill, passed on July 28, has alarmed investors by downgrading the country’s international property system well below international standards.

Medicine innovators are particularly concerned about the ease with which the government can now override patents with a compulsory license, and new rules that forbid patents for new uses of existing medicines.

Other high-tech industries worry about new “localization” rules that would force them to transfer proprietary technologies to local companies.

Taken together, these patent bill provisions send a hostile message to foreign investors and risk undermining Indonesia’s economic ambition.

Many Asian countries have already seized opportunities presented by the globalization of innovation, which drives increasing proportions of their economic growth. To set itself on the path to prosperity and join the ranks of high-income countries, Indonesia must also open itself to innovation, in particular by offering a warmer welcome to innovative private sector companies.

 

Philip Stevens

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