You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

March 2, 2020

Indonesian Language Requirements May Thwart Trademark Squatters

Subscribe to Updates
Informed Counsel

On September 30, 2019, the Indonesian president, through an initiative of the Ministry of Education and Culture, issued Presidential Regulation No. 63 of 2019 regarding the Use of the Indonesian Language (PR 63). This regulation is the implementing rule of Law No. 24 of 2009 regarding National Flag, Language, Emblem, and National Anthem.     

This new regulation stipulates that the Indonesian language (Bahasa) is now obligatory as the official medium of instruction in all educational institutions in the country, from kindergartens to universities. It also broadens the range of use of Bahasa for various activities, including official documents, the naming of buildings, and speeches by state officials in both international and national forums. In particular, article 35 of PR 63 explicitly requires the use of Bahasa for trademarks owned by Indonesian citizens or entities (except for licensed foreign trademarks). Under this law, an Indonesian citizen would not be able to register a trademark in a foreign language.   

Several decisions issued by the Supreme Court over the years have expressed disallowance of the registration of any mark using foreign wordings by a local applicant. The issuance of PR 63, therefore, is a useful additional argument against trademark squatters.    

Trademark squatters—local parties that unrightfully register and possess well-known foreign marks—are not uncommon in Indonesia. The trademark system in Indonesia is first-to-file, meaning that protection of a mark is given to the applicant who files that mark first (and has their application for registration subsequently granted). Added with the broader discretion of examiners in conducting substantive examination of the mark, this system provides an opportunity for trademark squatters.

Trademark Law No. 20 of 2016, which is the current legislation governing trademarks, stipulates that all marks passing formality examination will proceed directly to publication for opposition purposes. Trademark owners are encouraged to proactively monitor the published marks and to file oppositions when necessary. Once an opposition is filed, it will be used as a consideration by the examiner in conducting a substantive examination. Otherwise, the examination result will depend solely on the examiner’s discretion.    

Other than arguing that a published application is confusingly similar or filed in bad faith, an opposition may be filed on the basis of absolute grounds stipulated in article 20 of the Trademark Law, which holds that the application will be rejected if it contradicts state ideology, lacks distinctiveness, contains elements that  may mislead the public as to quality, and so on. In this regard, the concerned trademark owner can now add PR 63 to their argument—a squatted trademark must be rejected as it violates article 20 of the Trademark Law, namely contradicting the statutory regulation.   

Although PR 63 has been officially enacted, many parties have raised objections. One of the biggest criticisms is that PR 63 seems unsuitable for the progressive business era we are now in, and may be a significant obstacle to investment. Several business associations and governmental bodies—including the Directorate General of Intellectual Property (DGIP) itself—have recently agreed that the Ministry of Education and Culture will need to draft a further regulation to accommodate these objections.   

In terms of trademark applications, the DGIP has indicated that it may issue an announcement that PR 63 will not affect the trademark registration process. In this case, PR 63 would be considered a regulation related to use of the mark only. Thus, the examiner would not take PR 63 into consideration.    

Whether the DGIP will issue the notice, and their timeline for doing so, are not yet known. Moreover, in light of the objections, it seems unlikely that the examiner will use PR 63 as the sole grounds for refusal against an infringing application. However, it is still likely to be a persuasive tool, so at this moment it is recommended that trademark owners affected by squatters or similar issues mention PR 63 in their opposing arguments against similar marks.

Download Full Article
Related Professionals

Practices

Intellectual Property

Location

RELATED INSIGHTS​ 

July 27, 2026
Tilleke & Gibbins’ intellectual property specialists have authored the Thailand chapter of Trade Secrets 2026 from Chambers and Partners. This global guide examines the legal frameworks governing trade secret protection, enforcement, and litigation across jurisdictions worldwide. The Thailand chapter provides a comprehensive overview of the country’s legal regime for protecting confidential business information, covering the legal framework, trade secret misappropriation, litigation procedures, remedies, and dispute resolution. Some topics covered include: Protectable trade secrets Reasonable measures to maintain secrecy Employee confidentiality Trade secret licensing Civil and criminal remedies Litigation procedures and injunctions Damages and other remedies Mediation and arbitration The guide also examines practical issues relating to safeguarding trade secrets, defending against allegations of misappropriation, and managing trade secret disputes in Thailand. Chambers and Partners’ Global Practice Guides provide in-house counsel with authoritative commentary on practical legal issues affecting business, enabling readers to compare legislation and procedures across multiple jurisdictions. The Thailand chapter of Trade Secrets 2026 is available as a PDF through the button below. The full guide can be accessed for free on the Chambers and Partners website.
Read More
July 27, 2026
In March 2025, Thailand’s Central Intellectual Property and International Trade Court (IP&IT Court) issued a landmark judgment in favor of Luckin Coffee, China’s leading retail coffee chain. The judgment marked a significant turnaround following earlier trademark litigation involving Luckin Coffee from 2021 to 2023 that had generated widespread public attention and raised questions about the protection available to legitimate foreign brand owners in Thailand. In a significant subsequent development, Thailand’s Court of Appeal for Specialized Cases has now affirmed the IP&IT Court’s judgment in its entirety. The appellate decision brings clarity to one of Thailand’s most closely watched trademark disputes. Significantly, this is the first case in Thailand to formally recognize the trademark squatting principle. The Court of Appeal confirmed that Luckin Coffee has a better right to the disputed mark and ordered cancellation of the defendants’ trademark registration—a key application of the “better right” doctrine. The court also upheld the substantial damages awarded at first instance, providing important guidance on assessing harm from systematic trademark squatting. Award-Winning Judgment Affirmed in Its Entirety The significance of the first-instance judgment extended beyond the outcome for Luckin Coffee. The IP&IT Court judgment was subsequently recognized in the IP&IT Court’s Distinguished Judgment Awards in 2025, reflecting the complexity, novelty, and legal significance of the issues considered in the case. The defendants nevertheless appealed the judgment, challenging several key aspects of the IP&IT Court’s decision. Luckin Coffee continued to entrust Tilleke & Gibbins as their sole attorney to pursue the case at the appellate level. After considering the defendants’ appeal and Luckin Coffee’s submissions in response, the Court of Appeal affirmed the first-instance judgment in its entirety. The judgment was announced on July 8, 2026. Better Right to the Marks The Court of Appeal confirmed Luckin Coffee’s superior rights. The orders include cancellation
Read More
July 24, 2026
As food innovation continues to accelerate, manufacturers are increasingly introducing ingredients derived from new sources, produced using novel technologies, or lacking a significant history of human consumption. While these innovations create new opportunities for the food industry, they also raise important questions regarding consumer safety. For this reason, many jurisdictions, including Thailand, the European Union, Australia and New Zealand, Canada, and Singapore, require a premarket safety assessment for novel food ingredients before they can be placed on the market. The objective of this assessment is to ensure that each ingredient is safe for its intended use and level of consumption, does not present toxicological, allergenic, microbiological, or nutritional concerns, and will not mislead consumers. Scientific authorities typically evaluate the ingredient’s identity, manufacturing process, composition, specifications, anticipated dietary exposure, toxicological information, nutritional impact, and history of use before determining whether it can be marketed. Against this background, the Thai Food and Drug Administration (FDA) recently took an important step toward improving regulatory transparency by publishing, for the first time, a consolidated public list of substances that have successfully completed the Thai FDA’s safety assessment process, including substances determined to be novel foods and those determined not to fall within the novel food category. The list identifies the approved substances, the corresponding manufacturers or importers, approval dates, and the approved conditions of use. Although the publication does not change the existing legal framework governing novel food approvals, it provides businesses with greater visibility into the Thai FDA’s regulatory precedents and the types of substances that have previously been accepted through the safety assessment process. The full announcement is available on the Thai FDA’s website. As the list is now publicly available, it also provides useful insight into the types of substances that have successfully completed the Thai FDA’s safety assessment process.
Read More
July 24, 2026
Indonesia has updated its fee framework for intellectual property (IP)-related government services, with implications for IP owners, licensees, lenders, digital platforms, and businesses operating in the country. Government Regulation No. 30 of 2026 on Types and Tariffs of Non-Tax State Revenue Applicable to the Ministry of Law (GR 30/2026) was promulgated on July 2, 2026, and will take effect on August 1, 2026. Key Takeaways GR 30/2026, which replaces the relevant IP service fees under Government Regulation No. 45 of 2024, reorganizes the fee schedule into separate categories for copyright, industrial designs, patents, layout designs of integrated circuits, trade secrets, trademarks, geographical indications, IP enforcement, and other categories. The most commercially relevant changes include a new copyright recordation tariff exemption for songs and music, higher fees for several trademark and geographical indication services, new IP enforcement service fees, and a new fee type for registration of fiduciary security over IP rights objects. In addition, this is the first major update for trademark fees in approximately 10 years. GR 30/2026 is significant not only as a fee update but also as a further indication of Indonesia’s increasing recognition of IP as a financeable commercial asset. By expressly assigning fees to the registration of fiduciary security over IP rights objects, the regulation places IP-backed collateral filings within the Ministry of Law’s administrative service framework. While GR 30/2026 does not create a new secured-transactions regime, this development is relevant for lenders, borrowers, and IP owners structuring financing arrangements secured by trademarks, patents, copyrights, industrial designs, or other registrable IP rights in Indonesia. Copyright: New Fee Exemption for Songs and Music Recordation For copyright, GR 30/2026 creates a fee-exempt category for recordation of works or related-rights products for songs or music, while maintaining a separate category for other works and related-rights products. It
Read More