A New Patent Law that Technology Company Must Aware of

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A New Patent Law that Technology Company Must Aware of

SMART Legal Consulting

A New Patent Law that Technology Company Must Aware of

An information and technology (“IT”) industry is growing in Indonesia due to the establishment of some leading start – up companies in the last few years. The government in the Joko Widodo presidency is also trying to boost up the growing of technology companies in Indonesia.

However, contrary to the support of the government, there are still a lot of technology companies who do not aware with the protection of the intellectual property rights, especially in the patent aspect. On the other hand, technology is a core element of the technology companies that should be protected through patent registration to preserve its ideas and products.

In 26 August 2016, President Jokowi has signed the new patent law No. 13 of 2016 (“New Patent Law”).  There are any at least 4 (four) changes in the New Patent Law:

  • Patent Holder obliged to make their products or utilize their processes within Indonesia territory. Moreover, in doing such activity, the patent holders are also obliged in transferring technology, attracting further investment and providing more job opportunities. The obligation for patent holders in this New Patent Law is stricter than its predecessor.
  • Waqf (wakaf) as a most recent method for patents to be transferred to other parties. In the Previous Patent Law, the methods of patents transfer are inheritance, grants, testaments, and written agreements.
  • Patent as intangible assets, which has implication that patents can be used as collateral under fiduciary schemes as mentioned in the Article 108 of the New Patent Law.
  • There are (2) ways to register the Patent: electronic or manual (non-electronic). But both of them must be submitted directly to the Minister of Law and Human Rights.

Besides the above mentioned, here are some important steps that you should know about the patent registration procedure in the New Patent Law:

First, the application should be filed by the applicant or his/her attorney to the Minister of Law and Human Rights in written form under Bahasa Indonesia (Indonesian language). Not only the application, all the supporting documents (such as the invention description) also should be provided in Bahasa Indonesia. If the invention description is written in English, the applicant should provide the Indonesian translation.

Second, the applicant should pay the application fee and can submit the application either manually or in electronic form. The fee is decided in the Government Regulation through Non Tax-State Revenue (PNBP) scheme.

Third, the application should be submitted along with the detail information of applicant and the invention description. The detail information of applicant should consist of (a) date, month, and year of the application letter; (b) the name, address, and nationality of the inventor; (c) the name, address, and nationality of the applicant if the applicant is not a legal entity; (d) the name and address of the applicant if the applicant if the applicant is a legal entity; (e) the name and address of attorney if the application is submitted by the attorney; (f) the country and date of the first receipt of application if the application is submitted with the priority rights.

While, the detail of invention description that should be prepared are (a) the title of invention; (b) the description of invention; (c) the claim or several of invention; (d) the abstract of invention; (e) the image that is mentioned on the description to explain the invention; (f) the power of attorney if the application is filed by the attorney; (g) the statement of invention ownership by the inventor; (h) the letter of transfer of invention ownership if the application is filed by the applicant who is not the inventor; and (i) the proof of deposit of microorganisms if the application is related to microorganisms.

WHAT NEXT?

All the documents above (the proof of payment, the detail information of the applicant, and the detail information of the invention) are considered as the minimum requirements that you have to prepare if you want to register your invention in the Ministry of Law and Human Rights. After all the minimum requirements have been submitted, the officer in the Ministry will be conducting the administrative examination.

If the application has passed the administrative examination, the Ministry will announce the invention through electronic or non-electronic media.  The aim of the announcement is to give the opportunity for the public to argue and/or object the registration of the invention. The announcement will be conducted in six months.

SUBSTANTIVE EXAMINATION

If there is no argument and/or objection from the society regarding the registration of the invention, the Applicant can file the application for substantive examination. The Applicant should file in written form and pay the application fee. The Fee of substantive examination is decided in the Government Regulation through Non Tax-State Revenue (PNBP) scheme.

The application for substantive examination should be submitted maximum in thirty six (36) months since the date of the receipt of the administrative application.  If the Applicant failed to apply for substantive examination, the application of patent will be considered has been withdrawn.

In the end, The Minister will decide whether the application has passed the substantive examination or not in maximum thirty (30) months after the date of the application for substantive examination. After that, if the application is approved, the Minister will issue the certificate of patent rights two (2) months after the date of the letter which grants the patent.

HOW CAN SMART CONSULTING HELP YOU?

SMART Legal Consulting have worked with and assisted Companies to maintain and operate their business in Indonesia in compliance with all prevailing laws and regulations. We also provide legal services for IT Company for their commercial needs and requirements, including register your intellectual property rights and review and/or drafting license agreements.

Contact us Now, at:

E:  info@smartcolaw.com

H: +62821-1234-1235

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