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Indonesia: Impact of new trade mark tariffs

This year, the Indonesian government enacted new Government Regulation 45 Year 2014 on July 3 (PP number 45/2014), replacing the former Government Regulation 38 Year 2009 (PP number 38/2009) on types and rates of non-tax state revenue applicable to the Ministry of Law and Human Rights in which official fees for trade mark prosecution are regulated. PP number 45/2014 regulates the new tariff for filing trade mark applications, which is increased from Rp600,000 ($50) to Rp1 million.

The mechanism of trade mark application in relation to the numbers of goods or services in one class was also changed in conjunction with the implementation of the new regulation.

The former PP number 38/2009 stipulates that the official fees of a trade mark application in one class are Rp600,000 for a maximum of three goods or services. Should the application consist of more than three items, the applicant must pay additional official fees for each excess class of goods of Rp50,000.

The new PP number 45/2014 regulates that the official fees of a trade mark application are Rp1 million per mark/class for up to 10 goods or services. An official charge of Rp1 million will be applied for up to 10 excess items.

In a former mechanism, with Rp2 million, a trade mark applicant was able to claim a total of 31 items (three items plus 28 additional items) in the trade mark application, while according to the new PP number 45/2014, this amount only covers 20 items.

As these new trade mark application affect the limitation of goods or services per mark/class, it is recommended to be more astute in selecting the list of goods or services which are more relevant to the business before filing a new trade mark application.

As the additional official fees are applied for up to 10 excess items, it is suggested to claim 10 items or more in multiples of 10 in order to benefit from the new mechanism. In other words, when we have 23 items to be claimed in one trade mark application, we actually have the rights to add another 7 items into the list to become 30 items because the official fees for claiming 23 items and claiming 30 items are the same (Rp3 million).

This increase has been considered as a pertinent action due to the growth in the numbers of trade mark filings at the Directorate General of Intellectual Property Rights (DGIPR) in the past few years. In 2012, DGIPR received 62,455 trade mark applications, a 17% increase from 53,196 applications in the previous year, in which local mark applications are still dominant. The domination of local trade mark applications has also shown that in the last decades the awareness of protecting trade mark rights has been well disseminated in Indonesia.

Fortuna Alvariza

Fortuna Alvariza IP (FAIP)
Jl. Cipaku 6 No. 14, Kebayoran Baru
Jakarta Selatan (12170)
Tel: +62 21 723 3925
Fax: +62 21 723 3919


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