Highlighting Important Provisions in the Recently Passed Patent Bill



 
Marcell Sihombing, Rofiq Hidayat

 
After a full year of deliberation, the House of Representatives (House) finally passed the Revision of Law No. 14 of 2001 on Patents (Patent Bill) into law during a plenary session (sidang paripurna) led by Agus Hermanto, the Vice-Speaker of the House, on Thursday, 28 July 2016.
 
This Bill was first initiated by the government through its inclusion in the National Legislation Program for the 2015 Period (2015 Prolegnas). John Kenedy Aziz, the Head of the Special Committee responsible for the formulation of the bill, asserted in his final report that technological developments were having a significant impact upon economic growth and development across many sectors, including industry, chemicals, information technology and agriculture.
 
Moreover, the commencement of the current free-trade era is also having an effect upon the intellectual-property-rights sector, and specifically upon patented products. Thus, it is essential that Indonesia develops its technological foundations in order to catch up with the ever accelerating march of globalization. This approach can be implemented through the development of regulatory frameworks, specifically ones that relate to both national and international patent-registration mechanisms. It is hoped that the new Patent Bill will be able to prevent and protect against the exploitation of other people’s creations without proper permission/licenses being sought.
 
“Indeed, patents have a major contribution to make in terms of competitive advantages in the area of technological innovations. Thus it is necessary to formulate a system which will protect investors’ registered patent rights,” asserted Mr. Aziz.
 
Several key issues are now regulated under the new Patent Bill. Firstly, patent holders are obliged to manufacture their patented products under Indonesian jurisdiction. Moreover, the manufacturing process itself must also support the transfer of technology, investment and the provision of employment opportunities.
 
Secondly, the Bill stipulates the various benefits which can be enjoyed by patent holders, particularly from the payment of annual fees by the recipients of patent licenses. Thirdly, the Patent Bill no longer acknowledges patent rights for periods of longer than 20 years. Moreover, the commencement and nullification of any patent rights will be officially recorded and also announced publicly via electronic or non-electronic means.
 
Fourthly, the Patent Bill regulates the procedures which must be followed in order to secure a patent. Fifthly, the Bill also regulates the official Appeal Commission, as well as the procedures which have to be followed when filing for an appeal application, criminal sanctions, and the procedures for filing lawsuits at the commercial court (pengadilan niaga) should an appeal application the rejected by the Appeal Commission.
 
Sixthly, a mandatory license for the exercising of patent rights will be granted by a minister according to application submissions. This mandatory license document is closely related to its period of validity, and thus may result in an approval or a rejection of any application being granted.
 
Seventhly, patent holders who are not satisfied with the amount of compensation offered by the government are allowed to file lawsuits at commercial courts. Eighthly, patent nullifications (due to expiry or revocation) are also regulated. Ninthly, the implementation of royalty distribution is regulated as well.Tenthly, dispute-settlement mechanisms are also regulated under the bill. Additionally, the new Patent Bill also enables government institutions to become patent holders.
 
Mr. Aziz further stated that the new Patent Bill provides stronger legal protection when compared with its predecessor, and thus may contribute to an increase in investment activities across Indonesia. It is hoped that such a situation may increase the number of registered patents and ultimately increase the amount of government income which is generated through taxation.
 
“Do note that most developed countries have a limited amount of natural resources and thus intellectual property has become a major revenue stream for such countries,” Mr. Aziz asserted.
 
Yasonna H. Laoly, the Minister of Law and Human Rights, is of the same opinion as Mr. Azis and firmly believes that the Patent Bill represents the government’s support and involvement without actually violating international legal norms. Minister Laoly further asserted that the Patent Law could strengthen technological development and a build stronger system. In short, Minister Laoly stresses that the Patent Bill will maximize public welfare in Indonesia.
 
Minister Laoly has further claimed that the Patent Bill will serve as a legal framework and instrument which will emphasize the public-service roles of the Ministry of Law and Human Rights, as well as the Ministry of Research, Technology and Higher Education.
 
(hs/sp)


 
Marcell Sihombing, Rofiq Hidayat

 
After a full year of deliberation, the House of Representatives (House) finally passed the Revision of Law No. 14 of 2001 on Patents (Patent Bill) into law during a plenary session (sidang paripurna) led by Agus Hermanto, the Vice-Speaker of the House, on Thursday, 28 July 2016.
 
This Bill was first initiated by the government through its inclusion in the National Legislation Program for the 2015 Period (2015 Prolegnas). John Kenedy Aziz, the Head of the Special Committee responsible for the formulation of the bill, asserted in his final report that technological developments were having a significant impact upon economic growth and development across many sectors, including industry, chemicals, information technology and agriculture.
 
Moreover, the commencement of the current free-trade era is also having an effect upon the intellectual-property-rights sector, and specifically upon patented products. Thus, it is essential that Indonesia develops its technological foundations in order to catch up with the ever accelerating march of globalization. This approach can be implemented through the development of regulatory frameworks, specifically ones that relate to both national and international patent-registration mechanisms. It is hoped that the new Patent Bill will be able to prevent and protect against the exploitation of other people’s creations without proper permission/licenses being sought.
 
“Indeed, patents have a major contribution to make in terms of competitive advantages in the area of technological innovations. Thus it is necessary to formulate a system which will protect investors’ registered patent rights,” asserted Mr. Aziz.
 
Several key issues are now regulated under the new Patent Bill. Firstly, patent holders are obliged to manufacture their patented products under Indonesian jurisdiction. Moreover, the manufacturing process itself must also support the transfer of technology, investment and the provision of employment opportunities.
 
Secondly, the Bill stipulates the various benefits which can be enjoyed by patent holders, particularly from the payment of annual fees by the recipients of patent licenses. Thirdly, the Patent Bill no longer acknowledges patent rights for periods of longer than 20 years. Moreover, the commencement and nullification of any patent rights will be officially recorded and also announced publicly via electronic or non-electronic means.
 
Fourthly, the Patent Bill regulates the procedures which must be followed in order to secure a patent. Fifthly, the Bill also regulates the official Appeal Commission, as well as the procedures which have to be followed when filing for an appeal application, criminal sanctions, and the procedures for filing lawsuits at the commercial court (pengadilan niaga) should an appeal application the rejected by the Appeal Commission.
 
Sixthly, a mandatory license for the exercising of patent rights will be granted by a minister according to application submissions. This mandatory license document is closely related to its period of validity, and thus may result in an approval or a rejection of any application being granted.
 
Seventhly, patent holders who are not satisfied with the amount of compensation offered by the government are allowed to file lawsuits at commercial courts. Eighthly, patent nullifications (due to expiry or revocation) are also regulated. Ninthly, the implementation of royalty distribution is regulated as well.Tenthly, dispute-settlement mechanisms are also regulated under the bill. Additionally, the new Patent Bill also enables government institutions to become patent holders.
 
Mr. Aziz further stated that the new Patent Bill provides stronger legal protection when compared with its predecessor, and thus may contribute to an increase in investment activities across Indonesia. It is hoped that such a situation may increase the number of registered patents and ultimately increase the amount of government income which is generated through taxation.
 
“Do note that most developed countries have a limited amount of natural resources and thus intellectual property has become a major revenue stream for such countries,” Mr. Aziz asserted.
 
Yasonna H. Laoly, the Minister of Law and Human Rights, is of the same opinion as Mr. Azis and firmly believes that the Patent Bill represents the government’s support and involvement without actually violating international legal norms. Minister Laoly further asserted that the Patent Law could strengthen technological development and a build stronger system. In short, Minister Laoly stresses that the Patent Bill will maximize public welfare in Indonesia.
 
Minister Laoly has further claimed that the Patent Bill will serve as a legal framework and instrument which will emphasize the public-service roles of the Ministry of Law and Human Rights, as well as the Ministry of Research, Technology and Higher Education.
 
(hs/sp)
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