PROTECTION TYPE

What is protected ?

• COPY RIGHTS (law no.19/2002 date july 29,2002)

Protected creations referred to in this law shall be those in the fields of science,art,and literature covering : book,computer programs,scientific papers,lecturess,fine art,music or song,architecture,translation,etc.

• PATENT (Law no 14/2001.Dated August 1,2001)

Products or processes or perfection and development of products or processes.Inventions in the form of new products or equipment and having practical use value due to their forms,configurations,constructions,or components,can obtain legal protection in the form of simple patent.

• TRADEMARK (Law no 15/2001 dated august 1,2001)

Sign in the form of picture,name,word,letters,figures,configuration of colors or combination of the said elements.

• INDUSTRIAL DESIGNS (Law no 31/2000. Dated December 20,2000).

Creations of forms,configurations or compositions of lines or colours,or lines and colours,or combinations thereof in the form of three dimensions or two dimensions which give aeshetical impressions and can be manifested in three dimensions or two dimension patterns and can be used for producing certain products,goods,industrial commodities and handycrafts.

• THE LAY-OUT DESIGN OF INTEGRATED CIRCUIT.(Law  NO. 32/2000) dated December,20,2000

Creation in the form of a design of three dimensional placement of various elements, of which at least one is an active element and that are interconnected partly or wholly in an integrated circuit and three dimensional placement is meant to prepare the production of an integrated circuit.

• TRADE SECRET (Law  NO. 30/2000) dated December,20,2000

Covers the methods of production, processing, sale or other information in the area of technology and/ or business which have economic value, and are not identified by the general public.

What kinds of Protection criteria?

• COPY RIGHTS. Creation shall be any work of a creator which shows originality in the field of science,art or literature.
• PATENT. Patent is granted for new inventions containing inventive steps,and applicable in the industry
• TRADEMARK. Which has distinguishability and is used in trading activities of goods and services.
• INDUSTRIAL DESIGNS. Industrial design rights shall be granted to new industrial design,considered new if upon the date of receipt the industrial design are not the same as previous disclosures.
• THE LAY-OUT DESIGN OF INTEGRATED CIRCUIT .Any right to lay- out design of integrated circuit shall be given to original  lay- out design of integrated circuit.And shall be declared original if the design constitutes a result of independent work of the designer and is not something general for designer upon the production of the lay- out design of integrated circuit
• TRADE SECRET. Secret in nature, economic value, and its secrecy is strictly safeguarded through proper efforts.

How to obtain the rights?

• COPY RIGHTS. A copyright shall be the exclusive right of a creator or copyright holder to announce or reproduce his/her creation arising automically after creation has come into being,without reducing restriction within the frame work of the existing laws and regulations.
• PATENT. Patent is an exclussive right granted by the country through the application,which is submitted to the directorate general for intelectual property rights,subordinate to the departement chaired by the minister of law and humanrights.
• TRADEMARK.The exclusive right granted by the country to the owner of a mark registered at the mark general list,submitted in writing to the directorate general of intelectual property rights subordinate to the department led by the minister of law and humanrights.
• INDUSTRIAL DESIGNS. Industrial design rights shall be exclusive rights granted by the state of Republic of Indonesia to designers in conection with results of their creation for a specified period to exercise the rights by themselves,or approve other perties to do so.
• THE LAY-OUT DESIGN OF INTEGRATED CIRCUIT. Right to lay-out design of integrated circuit  shall be exclusive rights granted by the state of Republic of Indonesia to a designer in conection with his creation to be  exercised directly  for a specified period or to approve  other parties to exercise the right, registered to the directorate general of intelectual property right subordinate to the minister of law and human rights.
• TRADE SECRET. To use his own Trade Secret ,to grant licences to or  to prohibit other parties from using the Trade Secret or revealing the Trade Secret to any third party for commercial interests, transfering the rights and License.

How about the validity period ?

• COPY RIGHTS. Valid during the life time of their creators and shall continue to be valid up to 50 (fiffty) years thereafter,exception added to article 27 copyrights law.
• PATENT. 20 years as of date of receipt for patent,10 years starting from date of receipt for simple patent.
• TRADEMARK.  Every registered trademark secures legal protection for period of 10 (ten) years as from the date of receipt and the protection period is extendible.
• INDUSTRIAL DESIGNS. The protection of industrial design rights shall be granted for 10 (ten) years, starting from the date of receipt , and seeing the condition of changing in ownership of the rights and licenses.
• THE LAY-OUT DESIGN OF INTEGRATED CIRCUIT. Shall be granted for 10 (ten) years, to a right holder as from the date when the design is exploited commercially for the first time.Whereever, or as from the date of receipt , and /or being already exploited commercially, an application shall be submitted not latter than 2 (two) years as from the date when the design is exploited commercially for the first time
• TRADE SECRET. Valid during the life time of the creator , with the exception of transfering the right and license.

Violation type

• COPY RIGHTS. Without approval from the exclusive rights holder,to make,reproduce or broadcost the sounding recordings and picture divectives..
• PATENT.Without approval ,for product-patent : making,using,selling,importing,leasing,delivering,etc: for process-patent: using production proces,which is granted patent to produce goods or other ections or specified.
• TRADEMARK. Whoever intentionally and unrightfully uses a mark totally the same as a registered mark belonging to the other party of goods and/or services of the same kind which are produced and/or traded
• INDUSTRIAL DESIGNS.  Whoever intentionally and without rights commits the action in making,using,selling,importing,exporting and/or distributing goods given industrial design rights.
• THE LAY-OUT DESIGN OF INTEGRATED CIRCUIT. Without the approval from the right holder , in making using,selling,importing,exporting and/or distributing goods partly or wholly containing designs already securing rights to lay-out designs of integrated circuits.
• TRADE SECRET.  Purposely reveals the trade secret, disavows the agreement or disavows written or unwritten obligations to safeguard the relevant tradesecret. And obtains or controls the tradesecret by the method which is againts the existing regulations.

What is the criminal provisions?

• COPY RIGHTS.  Sentenced to a maximum of 7 (seven) years in jail and/or be fined a maximum of Rp 1.500.000.000 (one billion five hundred million rupiahs).
• PATENT. Subject to a maximum 4 years-imprisonment/or a penalty in amount not exceeding Rp 500 million (five hundred million rupiahs).
• TRADEMARK.  Sentenced to imprisonment of 5 (five) years at the maximum and/or a fine of Rp 1.000.000.000 (one billion rupiah) at the maximum.
• INDUSTRIAL DESIGNS.  Whoever intentionally and without rights commits the actions as meant above,  shall be subjected to imprisonment of 4 (four) years and/or a fine of Rp 300.000.000,00 (three hundred million rupiahs) at the maximum.
• THE LAY-OUT DESIGN OF INTEGRATED CIRCUIT. Whoever intentionally and without rights commits the actions as meant above, shall be subjected to imprisonment of 3(three) years and/or a fine of Rp 300.000.000,00 (three hundred million rupiahs) at the maximum.
• TRADE SECRET.   Whoever intentionally and without rights commits the actions as meant above, shall be subjected to imprisonment of 2(two) years and/or a fine of Rp 300.000.000,00 (three hundred million rupiahs) at the maximum.

WHY, WHAT, WHEN, AND WHERE TO PROTECT INTELLECTUAL PROPERTY RIGHTS ( IPR )

• The Need to Protect IPR :

  Intellectual Property Assets like any other  physical Assets need to be  protected legally so that there is clear ownership of the Asset. When  you purchase a house, you would want to  have a Deed to prove your ownership of the property. The similar  rationale applies to IPR  you need  to have a legal ownership to your invention so that you could exploit it, license it  or sell it to a third party. In case of IPR, there  are more reasons than just pure exploitation.

• Valuing and assessing IPR :

  Some question that have to be answered when assessing IPR :

  1. What IPR are used in the Business ?
  2. How are IPR protected ?
  3. What is the value of IPR ( as a whole and separately ) ?
  4. What is the level of risk related to IPR ( infringement third party’s rights, infringement by others ) ?
  5. Who own IPR ?
  6. Could somebody sue me or could I sue based on held IPR ?
  7. How can IPR be transferred or exploited to maximize return ?
  8. What is the net present value of damages claims ( Corporate, environmental, personal ) ?
     

• When valuing Intellectual Property Rights it is essential that the assessment of all aspects of the proposed transfer is seen in the whole context of the venture. Some of the considerations in respect of technology assessment are :
  1. Size : Is there a market for the product of the technology ?
  2. Scale  :  Is  the  Scale of Operation of the technology appropriate to that  market ?
  3. Maturity  :  Is the technology market proven or  is it new which will require further development ?
  4. Obsolescence   : Or the other hand, is the technology stale  which is about to be supplemented by new developments ?
  5. Environment :  can  the technology be operated satisfactorily in the licenseesenvironments, both climatic and cultural ?
  6. Suitability  : Is the technology appropriate for the infrastructure which is available e.q  power supply, telecommunication, transport, waste disposal, etc ?
• Market opportunity and the legal  status  of the Intellectual Property are two of the most significant factors affecting the value of  Intellectual Property.
  1. Market Opportunity is a function of the Degree of Recognition or Acceptance of an Intellectual Property asset in the market place. Market factors include :
     • Consumer Acceptance
     • Cost and pricing
     • Disposable income
     • Number of potential users
     • Manufacturability
     • Regulatory limitations
     • Competitive product and services.
     • Distribution methods
     • Advertising Investment
     • Industrial Sector

Such factors dictate  return on investment and, therefore, value. Value of Intellectual Property derives from profitability which can be achieved by both revenue  enhancement or   cost reduction.

2. Legal Factors include :
   • The  Government structure both in principle and practice of the particular jurisdiction where the intellectual property  is either made or used.
   • The nature and extent of the protection that the Intellectual Property asset has in that  jurisdiction.
   • The ability of the owner  of intellectual property rights to enforce the rights.

There is little point in investing time resources in intellectual Property Commercialization unless laws are in place providing clear and enforceable rights to the owner of the Rights.