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December 7, 2023

Proposed Amendments to Indonesia’s Industrial Design Law

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On November 13, 2023, the Directorate General of Intellectual Property (DGIP) of Indonesia’s Ministry of Law and Human Rights held an offline workshop regarding intellectual property (IP).  One of the main discussion topics was the socialization of the proposed amendments to the Industrial Design Law.

The proposed amendments to the Industrial Design Law contain a number of important changes, as outlined below.

Industrial design definition

The definition of an industrial design is clarified and emphasized in the draft law. An object protected through industrial design rights is “the outer appearance of a product,” gives an “aesthetic impression,” can be protected in whole or in part, and may be two- or three-dimensional.

Registration system

The protection period for industrial designs set by the draft law is 5 years, renewable for up to two additional five-year terms. This differs from the period provided under the current law, which is 10 years from the filing date, nonrenewable.

Recordal system

The draft law introduces a recordal system particularly for designs that have a relatively short commercial turnaround time, such as textile products. Recorded designs have a protection period of three years from the first publication. The recorded designs can become registered design applications by filing the design through the DGIP’s registration system no later than 12 months from its first publication.

Details regarding the recordal system are not yet available.

Nonregistrable industrial designs

The draft law clarifies that the following are not registrable as industrial designs:

  • Designs that do not give an aesthetic impression;
  • Designs whose features are for purposes of technical functioning only;
  • Folklore or traditional cultural expressions that have not been developed further;
  • Designs contrary to the provisions of laws and regulations, public order, religion, or morality; and
  • Designs filed in bad faith.

International design applications

The new law introduces a provision regarding design applications that are taken from an international application. However, detailed application requirements are not stipulated in the new law. Provisions to accommodate possible ratification of the Hague system for international applications are currently being considered by the Indonesian government.

Industrial Design Appeals Commission

The current law only stipulates that any interested party can file a lawsuit over cancellation of an industrial design registration with the commercial court. The new law allows applicants to file their objections to refusal decisions and invalidation of industrial design rights with a new independent adjudicating body at the DGIP called the Industrial Design Appeals Commission. Appeals can be filed with the Industrial Design Appeals Commission regarding:

  • Rejection of an application (filed by the applicant or proxy);
  • Correction to a granted industrial design (filed by the applicant or proxy; and
  • Granting of industrial design rights (filed by interested third parties).

This provision aims to make it easier for the public or third parties who object to a registered industrial design to file for cancellation through the Industrial Design Appeals Commission in addition to the option of filing an appeal with the Commercial Court. This can also reduce the courts’ burden of handling industrial design rights cases.

Landlord liability

The current law does not include a landlord liability provision. The draft law prohibits trading location administrators and mall owners from allowing the sale or duplication of goods resulting from infringement of industrial design rights. The draft law does not stipulate any penalty for this violation.

Industrial design rights implementation by the government

The current law does not mention industrial design rights implementation by the government. The draft law clarifies that the government can implement industrial design rights in Indonesia in the interest of national defense or security by providing reasonable compensation to industrial design rights holders.

Fiduciary guarantee

Industrial design rights can be used as an object of fiduciary guarantee under the new law.

Outlook

The draft law aims to increase the effectiveness of the industrial design system, in line with international developments in the field of industrial design. It also seeks to create a climate that further encourages creation and innovation in the field of industrial design as part of the intellectual property system. By clarifying various issues and introducing relevant new measures, the draft law will likely advance Indonesia’s ability to provide protection for industrial design rights and respond to current challenges in this area. The draft law is still under discussion and is expected to be finalized by the end of 2024.

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