Understanding Patent Protection in Indonesia: A Comprehensive Guide

As part of our series of articles on Intellectual Property Rights in Indonesia, this time we will look at an equally important topic: patents. After discussing copyrights, it is time to gain a deeper understanding of what patents are, the legal basis for patents in Indonesia, the role of inventions in the patent system, and the patent registration process within Indonesia’s legal framework. Read on to explore the intricacies of patents!
What is a Patent?
A patent is an exclusive right granted by the state to an inventor for a technological invention that meets certain patentability criteria—namely, it must be new, involve an inventive step, and be industrially applicable. This right allows the inventor to fully utilize the invention or to grant permission to others to do so.1 Simply put, a patent is a legal protection granted for a new technological invention that meets the patentability criteria. Once a patent is registered, the inventor gains exclusive rights to control the use and exploitation of the innovation.
Once a patent that meets patentability requirements is registered, the inventor is allowed to utilize the invention, including granting permission to others, for 20 years from the date the patent is registered, provided that the inventor complies with all applicable administrative requirements.2
Legal Basis of Patents
In Indonesia, legal protection for patents is currently regulated in Law Number 13 of 2016 concerning Patents (“Patent Law“), which serves as the primary legislation regulating all aspects related to patents. This law, comprising 20 chapters and 173 articles, replaces the previous regulation, Law Number 14 of 2001. However, there is a possibility that the Patent Law will soon be amended to adapt to technological advancements, enhance protection for inventions in the modern era, and encourage national innovation. The proposed amendments are also expected to address issues related to international compliance and improve patent services.3
With this legal foundation, inventors in Indonesia can feel more secure in developing and protecting their inventions and utilizing patent rights as a strategic tool to compete in the global market. But what exactly is an invention?
Read More: Understanding Copyright
Inventions in Patents
An invention is an idea invented by one or more inventors that is materialized into a solution to a particular problem in the field of technology. In this regard, inventions can be products or processes, as well as improvements or developments of existing products or processes.4
In order for an invention to be granted a patent, the following criteria must be met:5
- Novelty of the Invention: The invention must not have been previously disclosed or published prior to filing the patent application.
- Inventive Step: The invention must not be obvious to someone skilled in the relevant technical field.
- Industrial Applicability: The invention must be able to be produced or used in various industries, both on a large and small scale.
Not all inventions are eligible for patent protection even though they meet the above patentability criteria. Certain inventions are not patentable, such as those involving processes or products of which the use is contrary to law, religion, public order, or morality. In addition, methods of examination, treatment, therapy, and surgery applied to humans or animals are excluded from patent protection. Abstract theories and methods in science and mathematics, as well as living organisms (except for microorganisms) and essential biological processes for producing plants or animals, are also not eligible for patent protection.6
However, it is important to note that computer programs are patentable if they have technical characteristics and effects, and provide a solution to a problem, either tangible or intangible. For instance, inventions involving algorithms that calculate functions or encryption methods that encode and decode information for security purposes are patentable.7
Read More: Intellectual Property as Fiduciary Security in Indonesia: Breakthrough or Challenge?
Steps and Procedures for Filing a Patent Application
For an invention to obtain patent protection, the applicant must follow the steps outlined in the Patent Law. The following is a brief explanation of the steps to register a patent:
- Filing the Application
The patent application process begins with filing an application directly by the inventor, or by its proxy, to the Minister of Law and Human Rights or Menteri Hukum dan HAM (“MoLHR”). The application is submitted in writing in Indonesian, either electronically or non-electronically, and the applicant is required to pay the stipulated fee.8
- Required Documents
The patent application must include essential information, including:9- Date, month, and year of the application letter;
- Complete identity and address of the inventor and the proxy;
- Name and address of the proxy if the application is submitted through a registered IP consultant as the proxy;
- Country and date of receipt of the first application if the application is submitted with priority rights.
In addition to the above information, the applicant must also submit detailed information about the invention i.e., the title, description, claims, abstract, and drawings to clarify the invention (if necessary). If the application is filed by a party who receives the rights from the inventor, a deed of assignment from the inventor to the applicant is required.10
Under the Patent Law, the patent holders can be the inventor, any party receiving rights from the inventor, or any other entity that obtains further rights as registered in the patent public registry. In instances where the applicant is not the inventor, a deed of assignment from the inventor to the applicant is required. Although the law does not explicitly define the applicant as a company, organization, or specific entity, it is common practice for patents to be assigned to entities that intend to utilize the inventions.
The transfer of rights to a patent often originates from an employment relationship or contractual agreement, in which the invention is developed for the benefit of the company or organization. Article 10 of the Patent Law stipulates that the party entitled to obtain a patent can either be the inventor himself or another individual who has received further rights from the inventor. Furthermore, Article 11 clarifies that the party recognized as the inventor is the individual or individuals first identified in the patent application.
When an invention is created within the framework of an employment relationship, Article 12 indicates that the patent holder is typically the employer unless otherwise agreed. In such cases, the inventor is entitled to compensation as specified in the employment agreement, reflecting the economic benefits derived from the invention. Lastly, Article 13 states that for inventions developed jointly with government agencies, the agency and the inventor share patent rights unless otherwise agreed.
- Administrative Examination
Once the application is submitted, the documents will undergo an administrative examination by MoLHR. Applications that meet the minimum requirements will be given a filing date and recorded by the MoLHR.11 However, if the application submitted contains deficiencies, the applicant will be given time to rectify them.12 The application will be considered withdrawn if the deficiencies are not corrected within the specified time frame.13 - Application with Priority Rights
Suppose the application is filed with priority rights, the applicant must meet additional requirements, such as submitting a certified copy of the priority document issued by the competent authority in the country of the first application. This document must be submitted to MoLHR no later than 16 months from the priority date. If these requirements are not met, the application will be considered as filed without priority rights.14 - Application through Patent Cooperation Treaty
Patent applications can also be filed under a Patent Cooperation Treaty or Traktat Kerja Sama Paten, which allows for the registration of patents in multiple countries simultaneously. However, the procedures still refer to the applicable national regulations.15Understanding the patent registration process in Indonesia is a crucial step for inventors to protect their inventions legally. By following the prescribed procedures, inventors can ensure their work receives maximum protection.
For further information on this matter, feel free to contact us at ADCO Law.
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About ADCO Law:
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Contact our Business Development team for further information:
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