Indonesia: Joint ownership of trade mark rights
Managing IP is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX
Copyright © Legal Benchmarking Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Indonesia: Joint ownership of trade mark rights

Nowadays, it is common for two or more companies to collaborate in developing certain projects for their common benefit. With the increasing number of companies entering into collaborative innovation, there is more joint ownership of intellectual property in Indonesia. Joint ownership of IP rights often occurs when two or more parties collaborate on a certain project. Each party in the project will then own a certain portion of the work product. The prevailing laws in Indonesia provide no specific guideline with regard to joint ownership of IP rights. Therefore, unless agreed otherwise, each joint owner will own an equal portion of the jointly owned IP rights.

While the prevailing laws allow joint ownership of intellectual property, there are some risks. Any action taken with regard to jointly owned IP rights, such as giving a licence to a third party, taking action against unauthorised use, and disposal of the IP rights, requires a joint decision by all owners.

The Trade Mark Law does not allow ownership of similar trade marks in the names of different parties. If a trade mark application/registration is jointly owned by two or more parties, each co-owner will be considered as a different party from the joint owners. Therefore, any prior trade mark application/registration owned by the joint owners will likely be cited against similar new trade marks which are filed by each individual owner. Similarly, if each individual owner has a prior trade mark application/registration, any subsequent trade mark application in the name of the joint owners which incorporates a similar element to the prior trade mark application/registration will likely be rejected due to its similarities with the prior trade mark application/registration. As letters of consent and co-existence agreements are not acceptable to overcome citation during the trade mark examination process, the subsequent trade mark application is not likely to be granted registration.

Given the above, it is advisable to avoid jointly owned IP rights. In the case of trade marks, you may choose not to obtain registration of a trade mark in the name of the joint owners which incorporates the house mark of each individual owner. Should the parties opt to own the IP rights jointly, to avoid any conflict, it is essential to make written arrangements in relation to ownership of IP rights before commencement of any work. As an alternative to joint ownership of IP rights, an arrangement which may be considered is that one party owns all the IP rights and grants a licence to the other party/ies. Compliance with the newly regulated IP rights licensing recordal must also be considered to validate the use of such rights.

Lukiantono_Daru

Daru
Lukiantono

Gayatri Putri
Utami


Hadiputranto, Hadinoto & PartnersThe Indonesia Stock Exchange Building, Tower II, 21st FloorSudirman Central Business DistrictJl. Jendral Sudirman Kav 52-53Jakarta 12190, IndonesiaTel: +62 21 2960 8888Fax: +62 21 2960 8999www.hhp.co.id

more from across site and ros bottom lb

More from across our site

Partners and other senior leaders must step up if they want diverse talent at their firms to thrive
European and US counsel reveal why they are (or aren't) concerned about patent quality and explain how external counsel can help
Firms such as Bird & Bird and Taylor Wessing have reported rising profits and highlighted the role of high-profile IP disputes and hires
We provide a rundown of Managing IP’s news and analysis from the week, and review what’s been happening elsewhere in IP
Lawyers in the corporate and IP practices discuss where the firm can steal a march on competitors, its growth plans in London, and why deal lawyers are ‘concertmasters’
Kathleen Gaynor, DEI specialist at Phillips Ormonde Fitzpatrick, says deliberate actions can help law firms reach diversity goals
Scott McKeown, who moved to Wolf Greenfield one year ago, says the change has helped him tap into life sciences work and advise more patent owners
The winners of our Asia-Pacific Awards 2024 will be revealed during a ceremony in Malaysia on September 26
Zach Piccolomini of Wolf Greenfield explains how to maximise your IP portfolio’s value while keeping an eye on competitors
Witnesses at a Congressional hearing debated whether reforming the ITC is necessary and considered what any changes should look like
Gift this article