General Overview

On 28 July 2016, Indonesia has a new Patent Law when the House of Representative approved and passed the bill replacing Law No. 14 of 2001 concerning Patent. The new Patent Law aims to increase protection for inventors and patent holders, so that the public will be motivated and encouraged to create or improve their work in quantity and quality.

Please note that the Patent Law has not been officially released and will take effect after 30 (thirty) days as of the approval date of the House of Representative or once President Joko Widodo signs it.

Notable Changes

• Simple Patent Protection is broadened, not only for new products or development of the existing patent, but also for new process or development of existing process. However, for the second use or second medical use including discovery, it cannot be patented.

• Inventor is given 6 (six) months to register their invention patent that has been published in the scientific session in the form of thesis/dissertation or other scientific work and/or scientific forum in educational institutions or research institute.

• The possibility of patent ownership by government agencies and patent holders (inventors), and remuneration for Civil Servant for their invention after their patent is commercialized.

• The Patent Appeal Board’s authority is broadened, formerly they only examined rejection of applications, but now they can examine and decide on the correction of description, claim and/or drawing after the application is granted and they can also examine the decision on granted patent.

• The Minister may provide compulsory license to produce pharmaceutical products that are patented for curing human diseases, import procurement of pharmaceutical products patented in Indonesia, that have not been able to be produced in Indonesia, and export pharmaceutical products patented and manufactured in Indonesia for curing human diseases requested by the developing or underdeveloped countries.

• The patent holder is obligated to make the product or use the process in the territory of Indonesia and there is no exception for this provision. Failing to comply with this provision, the Prosecutor or other party that represents the national interest may file a claim to delete such patent in the Commercial Court.

• Computer program related with the invention or technical aspect are patentable.

• The substantive examination period is shortened in this new Patent Law.

New Examiner of the Patent Application

The Minister may appoint a patent examiner from outside Directorate General of Intellectual Property (DGIP). This is a breakthrough to meet the rapid challenges of technological development, which requires the examiner to have advanced ability in the cutting-edge technology and also to empower scientists and experts in the fields of technology from universities and Government Research & Development field to take part in the development of the national patent system.

New Sanction

Criminal sanction under the new Patent Law is also upgraded, counterfeiters of patent product or process that cause human health problem, death and environmental damage can be sentenced to imprisonment of at a maximum of 7 (seven) years and/or a fine at a maximum of IDR 2.000.000.000 (two billion), and 10 (ten)- years of imprisonment and/or a fine at a maximum t of IDR 3.500.000.000 (three point five billion) for causing human death.

The law also makes an exemption for criminal and civil claims for parallel import and Bolar provision.

Unique Rules

The law also regulates patent that can become an object of fiduciary, new mechanism on annuity payment, and acceleration on substantive examination.

If you have any questions on the content of this Client Alert or wish to discuss anything about this matter in further detail, please feel free to contact: Mr. Endra Prabawa at endra.prabawa@zicolaw.com (IP Partner) and Ms. Ajeng Yesie at ajeng.yesie@zicolaw.com (Senior Associate).