Indonesia: Recordation of IP licence agreement

Indonesian IP laws have always required IP rights licences in Indonesia to be recorded at the Intellectual Property Office. This requirement is set out on the Copyright Law, Patent Law, Trade Mark Law, Industrial Design Law, Layout Designs of Integrated Circuits Law and Trade Secrets Law. However, such recordal mechanism has not been carried out due to the lack of implementing regulation, even though the legal consequence is that, if an IP licence is not recorded, it would not be binding on any third parties.

To implement that requirement, the Ministry of Law and Human Rights (MoLHR) recently enacted MoLHR Regulation No 8 of 2016 on Requirements and Procedures for Recordal of IP Licence Agreements, which stipulates the procedural steps to record an IP licence.

According to Regulation 8/2016, requests for recordation of an IP licence can be submitted to the Directorate General of Intellectual Property (DGIP) manually or online. However, the website of the DGIP does not yet provide a facility to implement this. Therefore, for now requests for recordation need to be submitted to the DGIP by hand.

To support a request for recordation of an IP licence, an application would need to submit (1) a copy of the licence agreement, (2) a copy of the certificate of registration of the IP rights, (3) an original power of attorney, and (4) an original payment receipt. The applicant is also required to submit a statement confirming that the licensed IP rights are valid, and that the licence would not jeopardise the national economy, hinder technological development or contravene the prevailing laws.

The DGIP will then examine the request for recordation of the IP licence and record the IP licence within 10 days after it receives the request. The DGIP will publish the recorded IP licence on the website of DGIP. A recordation of an IP licence is valid for five years and is renewable.

With the issuance of the implementing regulation, it is now necessary for the licensor or licensee to record their IP licence at the DGIP, to ensure that the use of the IP rights in Indonesia based on the licence agreement is protected.

Daru Lukiantono	Gayatri Putri Utami

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