Ownership system

Indonesia is a member of the International Copyright Organization (WIPO) and a party to the Paris Convention for the Protection of Copyright. In 1997, Indonesia introduced amendments to applicable copyright laws that brought regulations closer to international law.

The currently applicable regulations define the use of computer programs as well as film and audiovisual productions as the use of literary works. Therefore, in the case of illegal copying of computer products and programs, the provisions on the protection of rights to literary works shall apply. The law also establishes licenses, the right to protect recordings and music productions. The copyright protection period has been extended to 50 years.

Financial penalties for illegal use have been increased to 300,000,000 Indonesian Rupees, while imprisonment has been increased to seven years. In practice, the provisions on copyright are still notoriously violated. Pirated copies of computer programs or film productions are generally available for the equivalent of around USD 2-3.

In August 2001, Indonesia introduced a new, unified patent law (Act No. 14/2001), which replaced the existing regulations in this area (three separate laws). Along with the adoption of the new implementing rules, an independent arbitration commission was established to resolve any patent rights disputes.

The new law also provides, among other things, for: a 20-year protection period for inventions with the possibility of extending it for another 2 years, consideration of disputes before a commercial court (previously before a civil court) and a penalty for patent infringement increased to USD 50,000. The condition for obtaining a patent is its use or production in Indonesia. A patent may be canceled only if the annual premium is not paid.

As in the case of patent law, in August 2001 the provisions on trademark protection were consolidated (Act No. 15/2001 of August 1, 2001).

In the case of trademark protection law, the amount of the fine for unlawful use of the trademark has been raised to USD 95,000. In order to determine the trade mark’s affiliation, the criterion of the date of its registration was adopted, and not the lifetime of the given product on the market. Court proceedings for trademark protection are lengthy and foreign investors continue to complain about the unreliability and tardiness of officials. An additional difficulty is the requirement to submit a trademark protection case to the court within five years of the trademark being unlawfully registered by another business entity. This requirement, in the absence of transparency of court documents and unclear procedures related thereto, is difficult to meet.