IMPLICATION OF THE ENACTMENT OF THE INDONESIAN JOB CREATION LAW NO. 11 OF 2020 AGAINST INTELLECTUAL PROPERTY ALONG WITH THE AMENDMENTS
On November 2, 2020, President of Republic of Indonesia signed Indonesian Job Creation Law No. 20 of 2020 (hereinafter “Job Creation Law”) and at the same time the Job Creation Law has applied since the enacted date, i.e. November 2, 2020.
The purposes of this Job Creation Law are to encourage economic growth through creating jobs, improving investment and productivity. The enactment of Job Creation Law influences and amends some implementation regulations, including the implementation of Indonesian Trademark Law and Indonesian Patent Law. Here are the amendments:
- To Indonesian Law No. 20 of 2016 Concerning Trademark and Geographical Indication
- The addition of absolute rejection basis in the Article 20
Previously there were only 6 provisions which were used as the basis for absolute rejection. The Job Creation Law applies 7 provisions to serve as the basis for absolute rejection. In addition to these provisions, a mark cannot be registered if it contains a functional form. The functional form is a functional description of other related intellectual properties.
- Faster completion of substantive examinations
Previously the substantive examination of a mark was completed within 30 days and no later than 150 days. In the Job Creation Law, the period of substantive examination would be shorter, i.e. completed within 30 days and no later than 90 days.
- Revocation of provisions regarding the consequences of not taking the trademark certificate within 18 months of issuance
Previously Article 25 paragraph 3 stipulated that a registered mark was deemed withdrawn or deleted if within 18 months the Mark certificate that had been issued was not taken by the applicant or his proxy. The provision concerning this matter was REVOKED.
- To the Indonesian Law No. 13 of 2016 Concerning Patents
- Additional “practical use” criteria for granting simple patents
Previously in Article 3 paragraph 2 the criteria that must be met for granting simple patents were new innovations, development of existing products or processes that could be applied in industry. In the Job Creation Law there is additional criteria for granting simple patents regarding practical use.
In addition, the Job Creation Law also describes the development of the product or process includes simple products, simple processes, or simple methods.
- Revocation of obligation for product manufacture or application processes for technology transfer, investment and / or availability of job demand
Previously Patent Holders were obliged to manufacture products or use processes in Indonesia to support technology transfer, investment, and / or availability of job demand. In the Job Creation Law this provision is amended.
The obligation to implement patents in Indonesia is still regulated in the same article, namely Article 20, however there is “leniency” regarding the form of implementation. In the Job Creation Law, it is explained that the obligation of patent implementation includes making, importing, or licensing product-patents, process-patents, method-patents that have been granted patents.
- Faster substantive examination process of simple patent
Previously a simple patent application was announced no later than 7 days after 3 months from the date of receipt. In the Job Creation Law the patent application is announced no later than 14 days from the date of receipt of the application.
Furthermore, previously the announcement of a simple patent application would take 2 months. In the Job Creation Law the period of announcement is also shortened to 14 working days. This results in brief and less opportunity for third parties to file an objection to a simple patent application.
In addition, the decision of acceptance or rejection of simple patent application will be faster. The Minister is obliged to issue a decision on the acceptance or rejection of a simple patent application no later than 6 months from the date of receipt of a simple patent application.
- There is no opportunity for simple patent Applicant to submit a rebuttal
Previously a simple patent applicant was given the opportunity to submit a rebuttal. In the Job Creation Law that opportunity was no longer valid. Therefore, the filed objection by third parties against simple patent application will be automatically used as additional consideration in the substantive examination stage.