Deliberation of Draft Bill on Trademarks and Patents Ongoing

 
Marcell Sihombing, Rofiq Hidayat
 
The House of Representatives (House) has finally commenced discussion of the Draft Bill on Trademarks and Patents (Draft Bill), just one of the bills on the government’s 2015 Priority National Legislation Program (Priority Prolegnas 2015). Various inputs into the deliberations have been received by a Special Committee (Panitia Khusus – Pansus) in order that the eventual Draft Bill will be able to support small and medium-sized businesses (UKM).
 
“The Draft Bill must support UKM, and we demand that UKM be exempt from all notary fees as regards the registering of their companies or cooperatives, since these should be covered by the government,” asserted Refrizal, Vice-Chair of Pansus and the lawmaker primarily responsible for the deliberation of the Draft Bill.
 
Mr. Refrizal stated that the Draft Bill would ensure that in the future a greater emphasis would be placed upon national interests, such as measures to protect the currently expanding creative-industry sector. The Draft Bill should also reinforce the protection of local-product trademarks by mandating that the government be consistent in its promotion of local products.
 
It is Mr. Refrizal’s firm belief that the Draft Bill will end up serving as a catalyst for the revival of local-product trademarks. “Let us aim to spur a national revival as regards the protection of local trademarks through government support, a move which is of great importance to the country,” stressed Mr. Refrizal.
 
Tulus Abadi, Daily Chair of the Indonesian Consumer Agency Foundation (YLKI), has also stated that, from a consumer perspective, trademarks are of great importance as regards the issue of product quality. Mr. Abadi believes that the Draft Bill may also offer certain guarantees in the event of any trademark disputes arising.
 
Mr. Abadi also expressed his concern that the passage of the Draft Bill should not deviate from its course due to the influence of any global-business agenda. At the very least, the Draft Bill must protect local trademarks, as they will find it difficult to compete with imported products without such support.
 
“Support for UKMs is essential, and infiltration by supporters of a global-business agenda needs to be prevented,” emphasized Mr. Abadi.
 
In terms of enforcing any new laws relating to this issue, a debate is currently underway between the police force, which are backing the creation of a regular offense, and suggestions from industry experts, who favor the creation of a complaint-based offense.

Mr. Abadi has expressed his concern that if a regular offense is created, then police officers may be able to detain users of premium-quality imitation products (kualitas/KW satu), merely because they are not original products.
 
Mr. Abadi has stressed, however, that middle-class purchasing power is limited in Indonesia. An original soccer jersey, for example, can cost in excess of IDR 1 million, a price that generally exceeds the purchasing power of Indonesia’s middle-classes. Law enforcers should thus, according to Mr. Abadi, take this fact into consideration instead of directly detaining any person or persons spotted using imitation products.
 
“Law enforcement must take issues such as these into consideration, and should instead strive to eliminate fake products at their source. We can’t allow a Trademark and Patent Law to have a negative impact on local business and the economy, as imitation products are an integral part of our modern culture here. Law enforcers should therefore exercise prudence, as we don’t want consumers wearing fake t-shirts to be criminalized,” explained Mr. Abadi.
 
Agus Sardjono, a Professor of Private Law at the University of Indonesia (UI), has also offered input into this issue and has stated that both the House and the government must be consistent in providing protection for local trademarks, including clarifying what protection will be covered by the Draft Bill.
 
Mr. Sardjono has asserted that Article 46 of the Draft Bill already contains a stipulation regarding the collective registration of local trademarks, and has pointed out that local-trademark registration is to be performed by the relevant local government (Pemerintah Daerah – Pemda) under the bill. Mr. Sardjono believes that the registration of local trademarks by Pemda will help to maintain product quality within each region.
 
“This provision should reduce expenditure by small-scale businesses, since businesses will be registered collectively by Pemda,” concluded Mr. Sardjono.

(sp)
 
Marcell Sihombing, Rofiq Hidayat
 
The House of Representatives (House) has finally commenced discussion of the Draft Bill on Trademarks and Patents (Draft Bill), just one of the bills on the government’s 2015 Priority National Legislation Program (Priority Prolegnas 2015). Various inputs into the deliberations have been received by a Special Committee (Panitia Khusus – Pansus) in order that the eventual Draft Bill will be able to support small and medium-sized businesses (UKM).
 
“The Draft Bill must support UKM, and we demand that UKM be exempt from all notary fees as regards the registering of their companies or cooperatives, since these should be covered by the government,” asserted Refrizal, Vice-Chair of Pansus and the lawmaker primarily responsible for the deliberation of the Draft Bill.
 
Mr. Refrizal stated that the Draft Bill would ensure that in the future a greater emphasis would be placed upon national interests, such as measures to protect the currently expanding creative-industry sector. The Draft Bill should also reinforce the protection of local-product trademarks by mandating that the government be consistent in its promotion of local products.
 
It is Mr. Refrizal’s firm belief that the Draft Bill will end up serving as a catalyst for the revival of local-product trademarks. “Let us aim to spur a national revival as regards the protection of local trademarks through government support, a move which is of great importance to the country,” stressed Mr. Refrizal.
 
Tulus Abadi, Daily Chair of the Indonesian Consumer Agency Foundation (YLKI), has also stated that, from a consumer perspective, trademarks are of great importance as regards the issue of product quality. Mr. Abadi believes that the Draft Bill may also offer certain guarantees in the event of any trademark disputes arising.
 
Mr. Abadi also expressed his concern that the passage of the Draft Bill should not deviate from its course due to the influence of any global-business agenda. At the very least, the Draft Bill must protect local trademarks, as they will find it difficult to compete with imported products without such support.
 
“Support for UKMs is essential, and infiltration by supporters of a global-business agenda needs to be prevented,” emphasized Mr. Abadi.
 
In terms of enforcing any new laws relating to this issue, a debate is currently underway between the police force, which are backing the creation of a regular offense, and suggestions from industry experts, who favor the creation of a complaint-based offense.

Mr. Abadi has expressed his concern that if a regular offense is created, then police officers may be able to detain users of premium-quality imitation products (kualitas/KW satu), merely because they are not original products.
 
Mr. Abadi has stressed, however, that middle-class purchasing power is limited in Indonesia. An original soccer jersey, for example, can cost in excess of IDR 1 million, a price that generally exceeds the purchasing power of Indonesia’s middle-classes. Law enforcers should thus, according to Mr. Abadi, take this fact into consideration instead of directly detaining any person or persons spotted using imitation products.
 
“Law enforcement must take issues such as these into consideration, and should instead strive to eliminate fake products at their source. We can’t allow a Trademark and Patent Law to have a negative impact on local business and the economy, as imitation products are an integral part of our modern culture here. Law enforcers should therefore exercise prudence, as we don’t want consumers wearing fake t-shirts to be criminalized,” explained Mr. Abadi.
 
Agus Sardjono, a Professor of Private Law at the University of Indonesia (UI), has also offered input into this issue and has stated that both the House and the government must be consistent in providing protection for local trademarks, including clarifying what protection will be covered by the Draft Bill.
 
Mr. Sardjono has asserted that Article 46 of the Draft Bill already contains a stipulation regarding the collective registration of local trademarks, and has pointed out that local-trademark registration is to be performed by the relevant local government (Pemerintah Daerah – Pemda) under the bill. Mr. Sardjono believes that the registration of local trademarks by Pemda will help to maintain product quality within each region.
 
“This provision should reduce expenditure by small-scale businesses, since businesses will be registered collectively by Pemda,” concluded Mr. Sardjono.

(sp)
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