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The Urgency of Implementing the First to File Principle in Terms of Trademark Registration in Indonesia
Intellectual property protection is almost one of the most important aspects of the organization of both a start-up and an operating business. And when a company enters foreign markets, this is a necessity. The lack of protection of its trademark in a foreign country can have fatal consequences for the company: the inability to sell products under its own brand, the refusal of contracts, millions of losses.

To exclude such risks, it is necessary to take care of brand protection at the stage of preparing an export strategy for entering into the foreign country market.

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RU / EN

Agustin, S.H., M.H.


Managing Partner
Indonesia Global Law Firm (Jakarta)

partner@iglolaw.com

www.iglolaw.com

Intellectual property protection is almost one of the most important aspects of the organization of both a start-up and an operating business. And when a company enters foreign markets, this is a necessity.

How to do this in Indonesia was told by Agustin the managing partner of the Indonesian Global Law Firm. Agustin graduated as a Bachelor of Law from Atma Jaya Catholic University in Jakarta, as well as a Master of Law degree from Trisakti University.

She has experience working in big law firms and foreign companies. Augustine specializes in Foreign Direct Investment procedures, business law, labor law, corporate law, consumer protection law and family law.

Agustin is registered as an Intellectual Property Rights Consultant, is a member of the Indonesian Intellectual Property Rights Consultant Association, and has license to practice law in Indonesia.
Along with the rapid development of public needs in the field of Intellectual Property Rights, especially in the field of Marks and Geographical Indications and competition in the business world, ownership of trademarks is essential. A product of goods and/or services has a distinguishing power from one another due to the presence of a trademark. Trademark is a mark used on goods that are traded by a person or several people together or a legal entity to distinguish them from other similar goods and/or services.<1>

Provisions regarding marks in Indonesia, especially trademarks are regulated in Law Number 20 of 2016 concerning Marks and Geographical Indications and Law Number 11 of 2020 concerning Job Creation which amends several provisions in Law Number 20 of 2016 concerning Marks and Geographical Indications.
In Indonesia, a Registered Mark are protected legally for a period of 10 (ten) years as of the Filing Date and may be renewed for the same period of time.<2>

The application for trademark registration in Indonesia is submitted to the Directorate General of Intellectual Property of the Ministry of Law and Human Rights of the Republic of Indonesia, which can be done online through the official website of the Directorate General of Intellectual Property of the Ministry of Law and Human Rights of the Republic of Indonesia, namely https://merek.dgip.go.id/.
<1> LEGISLATION: Law Number 20 of 2016 concerning Marks and Geographical Indications, Article 1.

<2> LEGISLATION: Ibid, Article 35.

The requirements


The requirements for registering a trademark that must be met by the Applicant, such as:


  1. Fill out the Trademark Registration Form;
  2. Prepare the Applicant's personal data:
  • For Individual: Identity Card and Tax ID (for Indonesian citizens); or Passport (for foreigners)/
  • For Legal entity: Deed of Establishment of the legal entity/

3. Etiquette/Marks Label;

4. Applicant's signature;

5. Recommendation Letter for Assisted SMEs or Certificate of Assistance for Small and Medium Enterprises (Original) - For Micro and Small Business Applicants;

6. Stamped MSBs Statement Letter - For Micro and Small Business Applicants.

Registration procedure


After all of these requirements have been met, the Trademark registration procedure is as follows:


1. Doing an initial check of the trademark to be registered to minimize the possibility of rejection or similarity to the trademark of another party that has been registered/requested for registration first;

2. Order the Billing Code via the webpage: http://simpaki.dgip.go.id/;

3. Input the Applicant's data and the requirements that have been completed previously;

4. Make Non-tax revenue payments;

5. Create a Marks account;

6. Submit an application for trademark registration online from the Marks account that was previously created, by:


  • Input the Billing Code that has been paid previously;
  • Input the Applicant’s data;
  • Input the data of the Applicant's attorney (if authorized by the Intellectual Property Consultant);
  • Input the data of the trademark;
  • Input the data on the class of goods and/or services;
  • Uploading the required document attachments;
  • Conduct a review through the 'Preview' menu;
  • Draft Trademark Registration Receipt published/

7. Wait for the status of the application for trademark registration which will be sent by notification letter from the Directorate General of Intellectual Property of the Ministry of Law and Human Rights of the Republic of Indonesia.

8. Trademark Certificate issued.


The trademark registration process in Indonesia as a whole takes about 6 (six) months. However, in practice there are often obstacles that hinder the trademark registration process.

Cannot be registered


Trademarks cannot be registered if <3>:


  • contradicts to the State ideology, laws and regulations, morality, religion, decency, or public order;
  • is similar to, related to, or merely mentioning the goods and/or services being applied for registration;
  • contains any element which may mislead the public in respect to its origin, quality, type, size, variety, intended use of goods and/or services being applied for registration or constitute a name of protected plant variety for similar goods and/or services;
  • contains description that does not correspond to quality, or efficacy of produced goods and/or services;
  • is devoid of any distinctive character; and/or
  • constitutes a generic name and/or public sign.

An application for trademark registration will result in rejection by the relevant Minister if <4>:


  • substantively similar to or identical with a prior registered Mark of other parties or prior Mark application in respect of similar goods and/or services;
  • substantively similar to or identical with a well-known Mark of other parties for similar goods and/or services;
  • substantively similar to or identical with a well-known Mark of other parties for different goods and/or services complying with certain requirements;
  • not the same type as long as it fulfils certain requirements which are further stipulated by government regulations;
  • substantively similar to or identical with a well-known Geographical Indication;
  • constitutes or is similar to name or initial of a well-known individual, photograph, or name of legal entity owned by other person, unless under a written consent from its proprietary;
  • constitutes as duplication or is similar to name or initial, flag, symbol or State emblem, or both national and international agency, unless under a written consent from the authorities; or
  • constitutes as duplication or is similar to official signs or seal or stamp used by a country or Government agency, unless under a written consent from the authorities.
<3> LEGISLATION: Law Number 20 of 2016 concerning Marks and Geographical Indications, Article 20.

<4> LEGISLATION: Ibid, Article 21.
First to File Principle
In the conception of trademark registration in Indonesia, the First to File Principle is adopted, which means that Indonesia recognizes and provides legal protection only to those who have registered their trademarks first, in this case those registered first with the Directorate General of Intellectual Property of the Ministry of Law and Human Rights of the Republic of Indonesia.
However, in the application of the First to File principle, paying attention to good faith and compliance with the applicable laws and regulations is a must. The application of this principle aims to provide legal certainty for all Indonesian people, minimizing the occurrence of fraud and duplication in business traffic in Indonesia.

This principle can be found implicitly in Article 3 of Law Number 20 of 2016 concerning Marks and Geographical Indications, which states that the Mark Applicant will get the Right on Mark after the Mark is declared registered, in the form of exclusive rights granted and guaranteed by the State to a registered Mark owner for a definite period for their own use or authorize others to do otherwise.
Case: Ruben Onsu VS PT Ayam Geprek Benny Sujono

One of the trademark dispute cases that indicates the urgency of the First to File principle in trademark registration in Indonesia is the "Bensu" trademark dispute between the famous Indonesian entertainer, Ruben Samuel Onsu or as known as Ruben Onsu, and one of the companies engaged in the F&B sector, PT Ayam Geprek Benny Sujono.

In May 2017, Ruben Onsu was appointed by PT Ayam Geprek Benny Sujono as the brand ambassador of “I Am Geprek Bensu”. However, 3 (three) months after being appointed as a brand ambassador, Ruben Onsu opened his own F&B business under the name "Geprek Bensu".

Ruben Onsu as the owner of the trademark "Geprek Bensu" filed a lawsuit against the trademark "I AM GEPREK BENSU SEDEP BENEERR" owned by PT Ayam Geprek Benny Sujono because of the similarity of the phrase "Bensu" in the trademark. Ruben Onsu himself is also known by the wider community with the abbreviated name "Bensu", so Ruben Onsu claims the name "Bensu" is his absolute right and considers PT Ayam Geprek Benny Sujono to be just a party who rides and takes advantage of his popularity.

The reason behind the use of the name "Bensu" as an element of the trademark of PT Ayam Geprek Benny Sujono is that "Bensu" is an abbreviation of the name of the owner, Benny Sujono, who founded the F&B business under the name "I Am Geprek Bensu".

The following is a comparison table of the disputed trademarks:
Based on the table above, it can be seen that the trademark "I AM GEPREK BENSU SEDEP BENEERR" owned by PT Ayam Geprek Benny Sujono was registered and accepted by the Directorate General of Intellectual Property of The Ministry of Law and Human Rights of The Republic of Indonesia earlier than the trademark "GEPREK BENSU" owned by Ruben Onsu.

In the Decision of the Central Jakarta District Court Number 57/Pdt.Sus-HKI/Merek/2019/PN Niaga Jkt.Pst, the panel of judges decided that PT Ayam Geprek Benny Sujono was the first legal owner and user of the trademark “I AM GEPREK BENSU SEDEP BENEERR” and ordered Directorate General of Intellectual Property of The Ministry of Law and Human Rights of The Republic of Indonesia to cancel the trademark registered by Ruben Onsu.

Moving on from the trademark dispute above, it can be concluded that the provisions regarding trademark registration in Indonesia adhere to the First to File principle, the one who is registered first gets legal protection.

To avoid the same incident, the First to File principle should be of more concern to business actors who wish to register their trademarks. Make sure that the trademark that you want to register does not violate the applicable provisions and does not have resemblance/ similarities to the trademark that has been registered previously. The decision to appoint an Intellectual Property Consultant to apply for trademark registration can be the right choice to avoid the emergence of legal risks in the future, especially for the foreigners who want to register their trademarks in Indonesia since it is a must for foreigners to do the filing through registered Intellectual Property Consultants.

Protecting oneself against violation or theft of one’s holding rights through a trademark registration is not only important for business actors, but also requires completing timely and accurate application procedures and realizing their objectives by extending expiry periods.

Indonesia Global Law Firm

is one of many corporate law firms in Indonesia that has handled a lot of Intellectual Property matters since 2016, with many experienced and Intellectual Property Consultants


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