New Obligations and Expanded Patent Rights: An In-Depth Look at the Third Amendment of the Patent Law

The enactment of Law Number 65 of 2024 on the Third Amendment to Law Number 13 of 2016 on Patents (“Law 65/2024“) introduces key amendments to strengthen Indonesia’s patent system. These updates aim to streamline administrative efficiency, align national regulations with international standards, and enhance the protection for genetic resources and traditional knowledge. The law expands the scope of patentable inventions, introduces new obligations such as annual reports on patent implementation, and streamlines procedural requirements. It also revises rules on compulsory licensing to balance public access and patent rights. Together, these changes reflect Indonesia’s commitment to fostering innovation, ensuring accountability, and enhancing competitiveness in both domestic and international markets.

The enactment of Law 65/2024 represents a significant step forward in strengthening Indonesia’s patent protection system. Through this amendment, the government seeks to enhance efficiency in patent services, streamline administrative processes, and align national regulations with international standards, including the provisions of the Trade-Related Aspects of Intellectual Property Rights (“TRIPs”) established by the World Intellectual Property Organization (“WIPO”) and the World Trade Organization (“WTO”). Furthermore, these updates emphasize the protection for innovations based on genetic resources and traditional knowledge while offering greater flexibility for business actors to innovate.¹ This article delves into several key changes introduced by Law 65/2024.

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A. Expanded Scope of Invention Protection

Shifting of Authority for Providing Information Regarding Genetic Resources and Traditional KnowledgeWith the enactment of Law 65/2024, patent applicants who use genetic resources and/or traditional knowledge are required to submit a letter of origin.² This obligation aims to ensure transparency and accountability in the use of local resources and eliminate ineffective bureaucracy. By shifting from mandatory government-approved determinations to a declarative mechanism by applicants, the patent process becomes more efficient without compromising protection for genetic and traditional cultural wealth. Consequently, a patent based on Genetic Resources and Traditional Knowledge can be revoked if a request is made on the grounds that the patent owner has acted in bad faith in disclosing the origin of the Genetic Resources and/or Traditional Knowledge, as reflected in the letter of origin.³
Expanded Scope of InventionsLaw 65/2024 expands the scope of inventions eligible for patents by including patent for methods, systems, and uses.⁴ This change grants patent owners broader exclusive rights to manage and protect their innovations, covering the use of patented systems, methods, or applications in commercial activities such as production, distribution, leasing, and importation.⁵ By recognizing methods, systems, and uses as patentable innovations within specific technological problem-solving activities, the law now also accommodates computer-implemented inventions and provides a foundation for future developments in Artificial Intelligence and the Internet of Things.

B. New Obligations Introduced by Law 65/2024

Annual Reporting Obligation for Patent ImplementationLaw 65/2024 requires that patent owners submit an annual report on the implementation of their patents in Indonesia to the Minister by the end of each year.⁶ This obligation aims to harmonize national regulations with international patent provisions and ensure that registered patents are genuinely implemented in Indonesia.⁷ Through this reporting obligation, patent owners are expected to increase accountability and transparency in using their patent rights.
Language Requirements for Invention DescriptionLaw 65/2024 also sets out rules for language use in the invention description. Applicants must include translations into English and Indonesian if the description is written in a foreign language other than English. Similarly, a translation into Indonesian is still required if the description is in English. Translations must be submitted no later than 30 days from the date of receipt of the patent application; otherwise, the application will be considered withdrawn.⁸

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C. Procedural Changes in Patent Registration and Management

Completing Patent Application DocumentsLaw 65/2024 shortens the timeframe for completing patent application documents. Previously the timeframe was 3 (three) months plus a 2 (two) month extension, with an additional 1-month extension if necessary. Meanwhile, under Law 65/2024 applicants have 3 (three) months, with a single allowable extension of up to 2 (two) months.⁹ This reflects the government’s commitment to expediting administrative processes in patent management. In emergency situations, applicants can request an additional extension of up to 6 months by submitting supporting documents and a formal request to the Minister.¹⁰
Period of Novelty ExemptionThe novelty exemption period, which was previously set at a maximum of 6 (six) months, has now been extended to a maximum of 12 (twelve) months prior to the registration date. Furthermore, an invention is not considered to have been disclosed if, within a 12-month period before the Receipt Date, the invention has been: (i) exhibited at an official exhibition or at an exhibition recognized as an official exhibition, (ii) used in Indonesia or abroad for experimental purposes in research and development, (iii) disclosed in scientific sessions and/or scientific forums, and/or (iv) disclosed by another party in violation of the obligation to maintain the confidentiality of the Invention.¹¹
Extended Grace Period for Priority Rights ApplicationLaw 65/2024 provides that applications with Priority Rights must be submitted within a maximum period of 12 (twelve) months from the priority date. If the application is not submitted within this period, an additional grace period of up to 4 (four) months from the expiration of the Priority Rights submission period is allowed, subject to a fee.¹²
Reapplication for Withdrawn and Deemed to have been Withdrawn ApplicationA withdrawn and a deemed to have been withdrawn application may be re-applied within a maximum period of 6 (six) months from the date of the notification letter issued by the Minister. In this case, the Applicant will be subject to an additional fee.¹³
Request for Early Substantive ExaminationApplicants may request an early substantive examination once their application is declared complete. A fee is required, and the request must be made before the application’s publication,¹⁴ which is scheduled within 7 days after 18 months from the Date of Receipt or the Date of Priority.¹⁵
Re-examination of Substantive ExaminationLaw 65/2024 opens up the opportunity for Applicants and/or Inventors to request Re-examination of Substantive Examination in the event of the following circumstances:
1. Rejection of Application;
2. Correction of the description, claims, and/or drawings after the application has been granted a patent;
3. Decision on the grant of a patent (may only be submitted by the applicant or their authorized representative);
4. Withdrawal; and/or
5. Application Deemed Withdrawn.
A request for re-examination of substantive examination based on the conditions outlined in points (a), (b), (c), and (e) must be submitted no later than 9 (nine) months from the date of the decision to grant, reject, or consider the application withdrawn. Meanwhile, a request for re-examination based on condition (d) must be submitted no later than 2 (two) months from the date of the decision to withdraw the application. The Minister is required to issue a decision to approve or reject the re-examination request no later than 12 (twelve) months from the date of submission of the re-examination request.¹⁶
Grace Period for Late Payment of Annual Fees

Payment of annual fees that exceeds the deadline (no later than 1 (one) month before the same date as the Date of Receipt in the following protection year) is granted a grace period of 6 (six) months, with a penalty of 100% (one hundred percent) calculated from the amount of annual fees owed.¹⁷

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D. Changes to the Compulsory Licenses Provisions

Law 65/2024 stipulates that compulsory licenses are non-exclusive and aimed at meeting domestic needs, with specific limitations on time and scope. Compulsory licenses are non- transferable except in relation to the assets of the recipient company.¹⁸ Second patents that utilize a compulsory license must also demonstrate significant technical and economic improvements, with mutual licensing rights between the first and second patent owners.¹⁹

Additionally, a compulsory license may now be revoked if it proves ineffective in preventing the exercise of a patent in a form or manner that harms public interest within two years after the license is granted.²⁰ This provision aims to ensure that compulsory licenses genuinely benefit the public and prevent patent abuses that could disadvantage the broader community.

Conclusion

Law 65/2024 introduces significant changes designed to strengthen access to innovation and technology in Indonesia. These new provisions provide procedural clarity and establish a more robust legal framework for managing patents at both the domestic and international levels.

For further information on this matter, please contact us at ADCO Law.

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