The Commission for the Supervision of Business Competition (Komisi Pengawas Persaingan Usaha / KPPU) has issued a Draft set of Guidelines on Article 50B of Law No. 5 of 1999 on the Prohibition Against Monopolistic Practices and Unfair Business Competition (Anti-Monopoly Law). The Guidelines have been issued under the authority granted to the KPPU in Article 35(f) of the Anti-Monopoly Law. Essentially, this is an authority for the KPPU to elucidate provisions in the Anti-Monopoly Law that remain unclear or need further enumeration in order to be effectively implemented.
Article 50B deals with matters relating to the agreements for intellectual property such as licensing, patent, trademark, copyright, industrial designs, integrated circuits, and trade secrets. The KPPU’s interest in intellectual property is the possibility that dealings in intellectual property may give rise to monopolistic practices and unfair business practices. Nevertheless, the Guidelines recognize the need to protect intellectual property and that not all agreements in the sector give rise to situations that are in breach of the Anti-Monopoly Law.
The primary goals of the Guidelines are to ensure that there is a consistent understanding of the purposes and meaning of Article 50B. Furthermore, it is expected that the Guidelines will ensure that all future disputes that come before the KPPU involving matters of intellectual property will be decided in a manner which is consistent, appropriate, and fair.
In essence, the Guidelines serve as an explanation of Article 50B, the terms of the article, and the manner in which the terms and provisions are to be applied in disputes. There are four basic points that the Guidelines attempt to make:
1.
Not all agreements in the intellectual property sector give rise to monopolistic practices or unfair business practices;
2.
There is a need to prevent monopolistic practices and unfair business practices;
3.
There is a need to ensure that agreements are pursuant to prevailing laws and regulations in the intellectual property sector and that compliance to those provisions does not give rise to monopolistic practices or unfair business practices; and
4.
There are permissible exceptions, in certain conditions, from the provisions of the Anti-Monopoly Law (such as where the agreement effects less than 20% of the market).
It is expected that the implementation of these Guidelines will ensure that all dealings in the intellectual property sector are pro-competition.
The Commission for the Supervision of Business Competition (Komisi Pengawas Persaingan Usaha / KPPU) has issued a Draft set of Guidelines on Article 50B of Law No. 5 of 1999 on the Prohibition Against Monopolistic Practices and Unfair Business Competition (Anti-Monopoly Law). The Guidelines have been issued under the authority granted to the KPPU in Article 35(f) of the Anti-Monopoly Law. Essentially, this is an authority for the KPPU to elucidate provisions in the Anti-Monopoly Law that remain unclear or need further enumeration in order to be effectively implemented.
Article 50B deals with matters relating to the agreements for intellectual property such as licensing, patent, trademark, copyright, industrial designs, integrated circuits, and trade secrets. The KPPU’s interest in intellectual property is the possibility that dealings in intellectual property may give rise to monopolistic practices and unfair business practices. Nevertheless, the Guidelines recognize the need to protect intellectual property and that not all agreements in the sector give rise to situations that are in breach of the Anti-Monopoly Law.
The primary goals of the Guidelines are to ensure that there is a consistent understanding of the purposes and meaning of Article 50B. Furthermore, it is expected that the Guidelines will ensure that all future disputes that come before the KPPU involving matters of intellectual property will be decided in a manner which is consistent, appropriate, and fair.
In essence, the Guidelines serve as an explanation of Article 50B, the terms of the article, and the manner in which the terms and provisions are to be applied in disputes. There are four basic points that the Guidelines attempt to make:
1.
Not all agreements in the intellectual property sector give rise to monopolistic practices or unfair business practices;
2.
There is a need to prevent monopolistic practices and unfair business practices;
3.
There is a need to ensure that agreements are pursuant to prevailing laws and regulations in the intellectual property sector and that compliance to those provisions does not give rise to monopolistic practices or unfair business practices; and
4.
There are permissible exceptions, in certain conditions, from the provisions of the Anti-Monopoly Law (such as where the agreement effects less than 20% of the market).
It is expected that the implementation of these Guidelines will ensure that all dealings in the intellectual property sector are pro-competition.
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