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Indonesian Patent System:
A Brief Introduction
   {   Prayudi Setiadharma, S.H., M.IP.
   Patent Law no. 14/2001
          Trademark  Law no. 15/2001
          Copyrights  Law no. 19/2002
          Industrial Designs  Law no. 31/2000
          IC Layout Designs  Law no. 32/2000
          Trade Secrets  Law no. 30/2000
          Geographical Indications  Incorporated within the
           Trademark Law  Government Regulation on GI
           Application Rules & Procedures being promulgated
          Plant Variety Rights Protection (PVP)/Plant Breeder’s Rights
            Law no. 29/2000

IPR regimes in Indonesia
 Paris Convention
        Bern Convention

        TRIPS Agreement

        Patent Cooperation Treaty (PCT)

        WIPO Copyright Treaty

        WIPO Publishers and Performers Treaty

        There are ongoing debates and discussions
         on whether or not Indonesia should join the
         Madrid Protocol


International contractual obligations
for Indonesia on IPR protection
STRUCTURE OF INDONESIAN
IPR/PATENT SYSTEM


             DEPARTMENT OF LAWS AND HUMAN RIGHTS
                  Minister of Laws and Human Rights


     DIRECTORATE GENERAL OF INTELLECTUAL PROPERTY RIGHTS
                                  (DGIP)
             Director General of Intellectual Property Rights


                    DIRECTORATE OF PATENTS
                         Director of Patents


                          Patent Examiners
                                               appointment
 First to File system;
       Protection Period  20 years (10 years for utility
        model)  no extension;
       Substantive Examination  upon Request by the

        applicant  no later than 36 months since Filing
        date.;
       Invention: technologically specific problem-solving

        activities in the form of process, product, or
        development from existing process/product


Law no. 14/2001 on Patents –
Basic Concepts
   Novelty  not anticipated by any disclosure prior to
           Filing Date;
          Inventive Steps  not obvious to any person skilled in
           the art at the time of the filing date;
          Industrial Applicability  implementable in industrial
           manner;




Substantive Patentability Requirements
under Indonesian Patent Law (Article 2)
 Aesthetic creations;
      Schemes;

      Rules and Methods to perform activities
       related to:
       - mental activities;
       - games;
       - business;
      Rules and Methods related to Computer
       Programs;
      Presentation of any particular information




SUBJECT MATTERS
NOT REGARDED AS INVENTION
-   Process/product contravening laws, public
           order, and morality;
       -   Method of treatment/medication/surgery
           applicable to human and/or animals;
       -   Scientific and mathematic theories and
           methods;
       -   Living Organisms except Micro-organisms
       -   Essential biological process to produce
           plants or animals, except non-biological or
           micro-biological process.


Inventions excluded from Patentability
(Article 7)
KINDS OF APPLICATION ELIGIBLE FOR
FILING IN INDONESIA
     BASIC/
NON-CONVENTION
                            No Priority Date Applicable
                                                                                                                 A
  APPLICATION
        for                                                                                                      P
Patent/Utility Model
                                                                                                                 P
                                                                                                                 L
PARIS CONVENTION
   APPLICATION              Filing no later than 12 months from Priority Date                                    I
         for
 Patent/Utility Model                                                                                            C
                                                                                                                 A
                                                                                                                 T
    PCT-BASED
                            CHAPTER 1: Entry to National Phase no later than 30 months from Priority Date        I
   APPLICATION
   for Patent only          CHAPTER 2: Entry to National Phase no later than 31 months from Priority Date        O
                                                                                                                 N
                     Rules and procedures are being modified as to abolish the separation of Chapter I and II.
                     Thus all PCT-based application will be using the same deadline of 31 months from the
                     respective Priority Date
APPLICATION



            MIN.
            ADM.                          COMPLETED?
                                                                                       FLOW OF INDONESIAN
            REQ.           Insufficient                         No
                                                                                       PATENT APPLICATION
              Sufficient
                                                Yes in ≤ 30
                                                days                                   PROCESS
       FILING DATE

 18 mts
                                                                          CONSIDERED
    ADMINISTRATIVE                                                                              Possible for
                                          COMPLETED?                          AS
     EXAMINATION Incomplete                                     No                              Challenge?
                                                                          WITHDRAWN
               Complete
                                                Yes in ≤
       SIX MONTHS                               3 mts
      PUBLICATION                                                                                 STATE      Theoretically
         PERIOD                                                                               ADMINISTRATION possible, yet
                                                                                                  COURT      still no precedent
≤ 36 mts

          SUBS.EXAM.                             Not Filed
           REQUEST

                      Filed               SUBSTANTIVE             ≤ 36 mts
                                          EXAMINATION


                                                                          No
                                                            REFUSAL             PATENTABLE?

                                                                ≤ 3 mts
                                                                                       Yes
                    SUCCEED?                                APPEAL
                                           ≤ 12 mts

                                                      Yes                       ALLOWED TO
                                                                                                       CERTIFICATE
                                                                                   GRANT
Patent Application Filing Procedures
Minimum requirement :
 Specification Document in Indonesian language  English
  may be filed first, translation to follow in 1 (one) month;
  Applicant name & address;
 Foreign-based filing must through local registered IPR
  Consultant  Power of Attorney must be furnished within
  three months;
 PCT-based application must be accompanied by copy of
  International Publication Sheet;
 Declaration    of Entitlement, Assignment from the
  inventor(s) and certified copy of priority document(s) shall
  be furnished within three months.
 After 18 months from Filing Date; lasts for 6
         months  theoretically can be expedited by
         request.
        Issued in Patent Gazette  digital version

         available at IPDL site  still inaccurate;
        Third party may file opposition  used as
         reference by the examiner at substantive
         examination stage




Publication Period
 Mandatorily must be concluded in 36
       months;
      Examiner issues Official Actions  may be
       more than once
      No “temporary suspension”;

      Results from corresponding applications in
       other countries may help a lot.




SUBSTANTIVE EXAMINATION
 Backlogs – only 70 examiners, more than 3000
       examinations a year.
      Examiners hesitate to conduct full-examination.

      No formal option to expedite.




PROBLEMS AT THE SUBSTANTIVE
EXAM. STAGE
   Issuance of Notice of Allowance, to be
         followed by Letters Patent in 3-6 months;
        Post-grant amendment not possible – except
         for cancellation of some claims.
        Subject to payment of back-annuities
         calculated from the year of filing – no later
         than the first anniversary of the grant.




PATENT GRANTING
 Annuities must be paid every year,
         deadline at the anniversary of the granting
         date each year.
        2,5%   surcharge per month for late
         payment.
        Revocation of the patent if fail to pay
         annuities for three consecutive years.
        Annuities for the 18th, 19th and 20th year
         must be settled in the 18th year.

DUTIES OF PATENTEE:
ANNUITIES (Article 18)
Payment is due on Anniversary of grant date, BUT annuity year
       is computed from filing date  easily leads to a
       CONFUSION;

     CALCULATION METHOD:
     - Record the filing date and grant date.

     - Calculate the expiration date.

     - Determine the last anniversary of grant date before
       expiration and put it as a deadline of 20th annuity payment.
     - Make a countdown to determine the annuity year due for

       the first anniversary of grant date.


DUTIES OF PATENTEE:
ANNUITIES (Article 18)
   Implementation within Indonesia  no
          sanction  failure to comply may be grounds
          for other party’s request for Compulsory
          Licensing.




DUTIES OF PATENTEE
 No clauses that will harm Indonesian economy, or
        that will restrict Indonesians’ access to posses
        and develop the patented technology;
       Must be recorder at the IPO, otherwise no
        binding effect to third party;
       Still no Government Regulation concerning Patent
        Licensing – Unenforceable?




PATENT LICENSING
PATENT LITIGATION
                                                    C
                                   Civil action
    Patent                                          O
  Invalidation     Subs. Valid,
                   Double-Pat.,                     M
                   Misconduct in
                                                    M
                   Compul. Lcs.
                                                    E
                                                    R
    Patent
                                   Civil action     C
Misappropriation   Inventorship/                    I
                    Ownership
                      Issues                        A
                                                    L
                                                                                              S
                                                    C                                         U
                                   Civil action     O                 Cassation               P
                     Damage/                        U
                   Interlocutory                    R
                                                                                              R
     Patent          Injunction
                                                    T                                         E
 Infringement                                                                                 M

                     Criminal action                                                          E

                                                  DISTRICT   Appeal    HIGH       Cassation
                                                                                              C
                                                   COURT              COURT
                     Criminal action
                                                                                              O
   Duty of
 Confidentiality                                                                              U
                                                                                              R
                                                                                              T
 Restricted to literal infringement  No
        “Doctrine of Equivalent”
       Expedited civil court proceedings  No appeal
        through H.C.  ≤180 days Commercial Court/≤60
        days Supreme Court
       Criminal action  max. 4 years imprisonment
        and/or ± USD 50,000.00 fine




PATENT INFRINGEMENT ISSUES
   Utilization of Patent by the Government one-sided
         take over by the govt. for patents considered vital to
         national interests/needs  compensation for patent
         holders
        Parallel Importation  non-infringement for
         pharm.prod. already imported by the pat. provided
         the importation complies with relevant regulation;
        Bolar Provision  others may utilize a pharmacy
         patent 2 years before expiration for obtaining
         marketing & production license from FDA.




IMPORTANT ISSUE TO NOTE
THANK YOU
  {   Copyright © 2012
      Prayudi Setiadharma

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Indonesian Patent System Overview

  • 1. Indonesian Patent System: A Brief Introduction { Prayudi Setiadharma, S.H., M.IP.
  • 2. Patent Law no. 14/2001  Trademark  Law no. 15/2001  Copyrights  Law no. 19/2002  Industrial Designs  Law no. 31/2000  IC Layout Designs  Law no. 32/2000  Trade Secrets  Law no. 30/2000  Geographical Indications  Incorporated within the Trademark Law  Government Regulation on GI Application Rules & Procedures being promulgated  Plant Variety Rights Protection (PVP)/Plant Breeder’s Rights  Law no. 29/2000 IPR regimes in Indonesia
  • 3.  Paris Convention  Bern Convention  TRIPS Agreement  Patent Cooperation Treaty (PCT)  WIPO Copyright Treaty  WIPO Publishers and Performers Treaty  There are ongoing debates and discussions on whether or not Indonesia should join the Madrid Protocol International contractual obligations for Indonesia on IPR protection
  • 4. STRUCTURE OF INDONESIAN IPR/PATENT SYSTEM DEPARTMENT OF LAWS AND HUMAN RIGHTS Minister of Laws and Human Rights DIRECTORATE GENERAL OF INTELLECTUAL PROPERTY RIGHTS (DGIP) Director General of Intellectual Property Rights DIRECTORATE OF PATENTS Director of Patents Patent Examiners appointment
  • 5.  First to File system;  Protection Period  20 years (10 years for utility model)  no extension;  Substantive Examination  upon Request by the applicant  no later than 36 months since Filing date.;  Invention: technologically specific problem-solving activities in the form of process, product, or development from existing process/product Law no. 14/2001 on Patents – Basic Concepts
  • 6. Novelty  not anticipated by any disclosure prior to Filing Date;  Inventive Steps  not obvious to any person skilled in the art at the time of the filing date;  Industrial Applicability  implementable in industrial manner; Substantive Patentability Requirements under Indonesian Patent Law (Article 2)
  • 7.  Aesthetic creations;  Schemes;  Rules and Methods to perform activities related to: - mental activities; - games; - business;  Rules and Methods related to Computer Programs;  Presentation of any particular information SUBJECT MATTERS NOT REGARDED AS INVENTION
  • 8. - Process/product contravening laws, public order, and morality; - Method of treatment/medication/surgery applicable to human and/or animals; - Scientific and mathematic theories and methods; - Living Organisms except Micro-organisms - Essential biological process to produce plants or animals, except non-biological or micro-biological process. Inventions excluded from Patentability (Article 7)
  • 9. KINDS OF APPLICATION ELIGIBLE FOR FILING IN INDONESIA BASIC/ NON-CONVENTION No Priority Date Applicable A APPLICATION for P Patent/Utility Model P L PARIS CONVENTION APPLICATION Filing no later than 12 months from Priority Date I for Patent/Utility Model C A T PCT-BASED CHAPTER 1: Entry to National Phase no later than 30 months from Priority Date I APPLICATION for Patent only CHAPTER 2: Entry to National Phase no later than 31 months from Priority Date O N Rules and procedures are being modified as to abolish the separation of Chapter I and II. Thus all PCT-based application will be using the same deadline of 31 months from the respective Priority Date
  • 10. APPLICATION MIN. ADM. COMPLETED? FLOW OF INDONESIAN REQ. Insufficient No PATENT APPLICATION Sufficient Yes in ≤ 30 days PROCESS FILING DATE 18 mts CONSIDERED ADMINISTRATIVE Possible for COMPLETED? AS EXAMINATION Incomplete No Challenge? WITHDRAWN Complete Yes in ≤ SIX MONTHS 3 mts PUBLICATION STATE Theoretically PERIOD ADMINISTRATION possible, yet COURT still no precedent ≤ 36 mts SUBS.EXAM. Not Filed REQUEST Filed SUBSTANTIVE ≤ 36 mts EXAMINATION No REFUSAL PATENTABLE? ≤ 3 mts Yes SUCCEED? APPEAL ≤ 12 mts Yes ALLOWED TO CERTIFICATE GRANT
  • 11. Patent Application Filing Procedures Minimum requirement :  Specification Document in Indonesian language  English may be filed first, translation to follow in 1 (one) month; Applicant name & address;  Foreign-based filing must through local registered IPR Consultant  Power of Attorney must be furnished within three months;  PCT-based application must be accompanied by copy of International Publication Sheet;  Declaration of Entitlement, Assignment from the inventor(s) and certified copy of priority document(s) shall be furnished within three months.
  • 12.  After 18 months from Filing Date; lasts for 6 months  theoretically can be expedited by request.  Issued in Patent Gazette  digital version available at IPDL site  still inaccurate;  Third party may file opposition  used as reference by the examiner at substantive examination stage Publication Period
  • 13.  Mandatorily must be concluded in 36 months;  Examiner issues Official Actions  may be more than once  No “temporary suspension”;  Results from corresponding applications in other countries may help a lot. SUBSTANTIVE EXAMINATION
  • 14.  Backlogs – only 70 examiners, more than 3000 examinations a year.  Examiners hesitate to conduct full-examination.  No formal option to expedite. PROBLEMS AT THE SUBSTANTIVE EXAM. STAGE
  • 15. Issuance of Notice of Allowance, to be followed by Letters Patent in 3-6 months;  Post-grant amendment not possible – except for cancellation of some claims.  Subject to payment of back-annuities calculated from the year of filing – no later than the first anniversary of the grant. PATENT GRANTING
  • 16.  Annuities must be paid every year, deadline at the anniversary of the granting date each year.  2,5% surcharge per month for late payment.  Revocation of the patent if fail to pay annuities for three consecutive years.  Annuities for the 18th, 19th and 20th year must be settled in the 18th year. DUTIES OF PATENTEE: ANNUITIES (Article 18)
  • 17. Payment is due on Anniversary of grant date, BUT annuity year is computed from filing date  easily leads to a CONFUSION; CALCULATION METHOD: - Record the filing date and grant date. - Calculate the expiration date. - Determine the last anniversary of grant date before expiration and put it as a deadline of 20th annuity payment. - Make a countdown to determine the annuity year due for the first anniversary of grant date. DUTIES OF PATENTEE: ANNUITIES (Article 18)
  • 18. Implementation within Indonesia  no sanction  failure to comply may be grounds for other party’s request for Compulsory Licensing. DUTIES OF PATENTEE
  • 19.  No clauses that will harm Indonesian economy, or that will restrict Indonesians’ access to posses and develop the patented technology;  Must be recorder at the IPO, otherwise no binding effect to third party;  Still no Government Regulation concerning Patent Licensing – Unenforceable? PATENT LICENSING
  • 20. PATENT LITIGATION C Civil action Patent O Invalidation Subs. Valid, Double-Pat., M Misconduct in M Compul. Lcs. E R Patent Civil action C Misappropriation Inventorship/ I Ownership Issues A L S C U Civil action O Cassation P Damage/ U Interlocutory R R Patent Injunction T E Infringement M Criminal action E DISTRICT Appeal HIGH Cassation C COURT COURT Criminal action O Duty of Confidentiality U R T
  • 21.  Restricted to literal infringement  No “Doctrine of Equivalent”  Expedited civil court proceedings  No appeal through H.C.  ≤180 days Commercial Court/≤60 days Supreme Court  Criminal action  max. 4 years imprisonment and/or ± USD 50,000.00 fine PATENT INFRINGEMENT ISSUES
  • 22. Utilization of Patent by the Government one-sided take over by the govt. for patents considered vital to national interests/needs  compensation for patent holders  Parallel Importation  non-infringement for pharm.prod. already imported by the pat. provided the importation complies with relevant regulation;  Bolar Provision  others may utilize a pharmacy patent 2 years before expiration for obtaining marketing & production license from FDA. IMPORTANT ISSUE TO NOTE
  • 23. THANK YOU { Copyright © 2012 Prayudi Setiadharma