Outstanding Annuities Payment and The Consequences

By : Puti Indriasari, S.E

Head of Strategic Management Am Badar and Partners

The issuance of a notification of allowance to grant will give rise to obligation for the Patent Holder to pay the annuity payment as stipulated in the Patent law No. 14 of 2001 articles 114. Otherwise, if the patent holder does not pay the annuities within three years consecutively it will make the patent become null and void (articles 115 of Patent Law No 14 of 2001).


Due to the back log of the three years outstanding annuity payments within three years consecutively in the Directorate General of Intellectual Property Rights, make a large number of patents becoming null and void. The Directorate General of Intellectual Property Rights issues notifications of revocation which contains the expiry date and obligation for the Patent Holder to pay the outstanding annuities.


Even though the Patent status is null and void but the patent holder will still be obliged to settle the non payment annuities which occur before the revocation. If they are not settled accordingly, they will be noted by the Directorate General of Intellectual Property Rights as the Patent Holder’s obligation to the Indonesian Government.

 


Regarding this matter, nowadays the Directorate General of the Intellectual Property Right issues a notification of Reminder to settle the outstanding annuities for the Patent Holder which has outstanding annuity payments. The notifications will be issuing 3 times within 100 days, with 30 days interval. At the end of the 100th days, if there is not any settlement of this outstanding payment, the Directorate General of Intellectual Property Rights will hand over the outstanding payments to the Directorate General of State Asset, Ministry of Finance of Republic Indonesia.

 



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