March 21, 2016

Indonesia – New Regulation on Recording IP License Agreements

Tilleke & Gibbins

A new Indonesian regulation sets out, for the first time, the procedures for recording license agreements for trademarks, patents, and copyright. This is an important development because, without recordation, a license holder does not have the right to enforce the licensed intellectual property rights against an infringer, and the license holder’s use of the IP is not recognized as actual “use” by the IP owner.

Yet despite this longstanding requirement for recordation, it had not previously been possible to record license agreements in Indonesia due to a lack of implementing regulations and guidelines. Instead, the majority of trademark owners have merely filed their license agreements to obtain an official stamp on these documents as evidence of good faith. This is not considered to be recordation, and it is unclear whether or not these filed license agreements are enforceable against third parties.

To address this problem, the Ministry of Law and Human Rights has now issued the Regulation on Requirements and Procedures for Recordation of Intellectual Property License Agreement, Ministerial Regulation No. 8 of 2016.

The implementation of this long-awaited regulation means that now is the time for IP license holders to comply with the recordation provisions of all IP laws. We will provide additional details and analysis of this regulation in the next issue of our Informed Counsel newsletter. In the meantime, if you have any questions about the process for recording IP license agreements, please contact [email protected] or +6221 2971 8088.

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