On Tuesday, March 19, 2024, the Director General of Intellectual Property, Min Usihen, attended a hearing session at the Parliament Compound in Jakarta, which was held by Commission II of DPR-RI to specifically discuss the second amendment of the Patent Law. In her official statement during the hearing, Min cited technological development in various sectors of trade has increased the need for the proposed amendment, along with several shortcomings recognized in the current law. Among the shortcomings cited by the Director General are too restrictive definition of invention, lack of clarity in the scope of computer program’s patentability threshold, patent implementation by the government that is so far limited for domestic purpose only, and novelty grace period that is considered too short.

Min also expected that the proposed amendment would bring the Law 13/2016 more aligned with the TRIPs agreement, as well as rules implemented by other fellow members of both the WTO and WIPO.

Law 13/2016 is the third in a series of patent law enacted by Indonesia since its independence. The first patent law enacted within the territory of what is now Indonesia was the Netherland’s Octrooiwet in 1910, which was also ratified in the colony that then was known as the Dutch East Indies. As Indonesia proclaimed its independence in 1945 and its sovereignty recognized in 1949, the existing patent law was rendered unenforceable since its heavy dependence to Netherlands-based examination authority.

Indonesia’s first national patent law was enacted in 1989 (Law 6/1989), which was subsequently amended in 1997 (Law 13/1997) following Indonesia’s ratification of the TRIPs Agreement as part of the WTO Agreement. In 2001, Indonesia introduced a new patent law (Law 14/2001) to replace Law 6/1989 and its 1997 amendment. The law existed until being replaced by the current law in 2016.

Law 13/2016 contained a number of new provisions that were considered quite progressive at the time of enactment. Those provisions, among others, were obligation to disclose the source of genetic resource materials or traditional knowledge in the patent description, as well as acknowledgement to inventors of inventions filed by government institutions, to the extent that they are granted rights to claim co-ownership of the patent instead of merely being named as inventors.

First amendment to Law 13/2016 occurred within the scope of the Omnibus Law no. 11/2020 concerning Works Creation, wherein the obligatory time frame to either grant or refuse application for utility models is cut short to six months from the filing date instead of the initial twelve months. However the Omnibus Law amendment is still inadequate to catch up with recent development, which render the proposed second amendment necessary.

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The Director of Copyright and Industrial Designs, Anggoro Dasananto, stated that traditional musicians in Indonesia are numerous and spread all over the country’s 38 province. While, according to Anggoro, many of them are quite productive in their respective region, most are still uncovered by the existing CMOs.

Creation of traditional music oriented CMOs had also been facilitated by the Directorate of Films, Music and Media (“DFMM”) of the Directorate General of Culture of the Ministry of Education, Culture, Research, Technology and Higher Education (“Kemendikbudristekdikti”). It was in 2021 during the 1^st Nusantara Tradition Music Congress held by DFMM that the idea of forming CMOs specific for the needs of traditional music was formalized as one of the congress’ formal recommendation.

The three traditional music CMOs consist of LMK Langgam Kreasi Budaya, LMK Citra Nusa Swara, and LMK Pro Karindo Utama, each of them caters to different kind of creators and copyright owners. Langgam Kreasi Budaya serves mainly songwriters and lyrics authors, while Citra Nusa Swara and Pro Karindo Utama represent performers and music producers, respectively.

The existence and roles of CMO in Indonesia were officially recognized and regulated under Law no. 28 of 2014 concerning Copyrights (“Law 28/2014”), which designates the term “LMK” and defines the same as non-profit legal entities that are authorized by authors, copyright holders and/or related rights owners to manage their economic rights in the form collecting and distributing royalties. Article 87 of the Law 28/2014 provides that authors, copyright holders and related rights owners shall become member to an LMK to enable them collecting royalties from users of their respective works.

Archeologist Edi Sedyawati in her book, Traditional Music Skill, defined “music traditional” as music that is used as expression of cultural values according to the respective tradition. Music tradition is also understood as cultural heritage with high artistic values that rise from the cultures of each region in Indonesia. There are now more than a thousand recognized ethnic groups in Indonesia, each with its own cultural traits and values shaped by long interaction with one another as well as with religious and foreign influences for generations, taking music as one of its form of expression.

Formation of the three CMOs indeed will provide traditional musicians all over Indonesia with a better option where they could produce and commercialize their musical works with more convenience and foreseeable return, and the nation with a more optimistic way to preserve and enhance its culture and tradition.

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Such honor for Noviadi began when in 2023 he was invited for a collaboration with Lemaire, a French fashion brand founded in 1991 by Christopher Lemaire. The invitation was readily accepted by Noviadi, who greatly appreciates how the French brand valued and held his works in high regard.  The collaboration soon took off as Lemaire acquired rights to incorporate Noviadi’s drawings in the brand’s fashion designs. Rights to ten drawings were purchased accordingly, including one that eventually found its way to Triet’s blouse as part of Lemaire FW23 Menswear collection.

Later Noviadi also sent fifteen original drawings to be displayed in an exhibition at the brand’s new store in Rue Elzevír, Paris. The exhibition was held from May 7 to July 6, 2023, and was solely dedicated to Noviadi under an Indonesian language title “JUJUR-SABAR” (translates to English as “HONEST PATIENCE“).

Noviadi admitted that in working with Lemaire, he had limited role when it came to designing the fashion end-products as he merely created the drawings. He proudly stated that his drawings already served as self-statement to his presence at the center of world’s fashion and arts, citing originality, freshness as well as distinctiveness as the key of his works’ strength. Also, Kurniadi respected Lemaire’s vision in emphasizing on simple and minimalistic design, which is in line with the character of his own works, which enabled the so-called marriage between the world of drawing arts and that of fashion. He also praised how smooth the collaboration went without even needed to conduct face-to-face discussion.

Lemaire got in touch with Noviadi through the representation of Cavin Moris Gallery in New York, where he also regularly held exhibitions every year since 2015. Since 2014 Noviadi had also held a number of exhibitions in various galleries all over the world, including Callan Park Gallery, Sydney College of the Arts; Galerie Jean Greset, Besancon, France; The Center for Intuitive and Outsider Art, Chicago, Illinois; and Cvijeta Zuzoric Art Pavilion, Belgrade.

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The Patent Appeal Commission consists of twenty members, i.e. Razilu; Linggawaty Hakim; Ragil Yoga Edi; Bambang Widiyatmoko; Markoni; Warjito; Mochamad Chalid; Amarila Malik; Budi Suratno; Arry Ardanta Sigit; Adi Supanto; lkhsan; Syafrizal; Farida; Erlina Susilawati; Hotman Togatorop; Mahruzar; Rifto Andriawan lndrasanto; M. Adril Husni; and Dian Nurfitri.

Former officials and patent examiners of the Directorate General of Intellectual Property (DGIP) dominate the line up. Most notable among those are Razilu, who had an excellent career at the DGIP with high profile positions such as Acting Director General, Secretary of Directorate General, and Director of Patent and Director of Information Technology; and Arry Ardanta Sigit, who used to be Director of Cooperation and Development of the DGIP before moved and spent the rest of his career at the Directorat General of Human Rights at the same Ministry.

The rest are mostly academics and scientists, which include Ragil Yoga Edi who was an in house patent expert at the National Agency for Research and Innovation (BRIN); as well as Warjito, Chalid and Amarila, who are Professors at the University of Indonesia in machine engineering, metallurgy, and pharmacy, respectively. Also among the names is retired Major General Markoni, who spent majority of his career in the Legal Corps of the Indonesian National Military (TNI), and was once the Head of Legal Administration of the TNI.

The Trademark Appeal Commission meanwhile consists of sixteen members, i.e. Dhahana Putra; Josef Adreanus Nae Soi; Fajar B.S. Lase; Budi Santoso; OK Saidin; Dina Widyaputri Kariodimedjo; Budiman N.P.D Sinaga; Junaedi Saibih; T. Didik Taryadi; Sri Mulyono; Lusi Dekrisna; lrnie Mela Yusnita; Subandini Nurtyas Utami; T. Muammar Kadafi; R. Syaifullah Hadiyanto S; and Layla Fitria. As with its patent counterpart, former DGIP officials and trademark examiners dominate the list. Didik Taryadi, for instance, was once the Deputy Director for Trademark Examination at the Directorate of Trademark and Geographical Indication. Several academics were also invited to join the team, including Budi Santoso, OK Saidin, Dina Widyaputri and Budiman, who are law professors at the Diponegoro University, University of North Sumatera, Gadjah Mada University and HKBP Nommensen University, respectively.

At the same ceremony, the Minister also officially appointed the 15-members Expert Team on Geographical Indications, consisting of academics and experts on the fields, i.e. Riyadil Jinan; Djoko Soemarno; Syaiful; Galih Prima Arumsari; Eva Laida; Muhammad Rif’an Rahmatulloh; Awang Maharijaya; Batara Siagian; Abdul Rokhman; Mariana Molnar Gabor Warokka; Miftah Farid; Agustinus Pardede; Irma Mariana; Idris; dan Gunawan.

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It was the President himself who publicly announced the birth of the new regulation as he delivered his remarks at the 2024 National Press Day in Jakarta on February 20, in which he elaborated on how the Perpres on Publishers’ Rights is aimed at ensuring quality journalism as well as maintaining sustainability of conventional media industry in Indonesia. According to President Jokowi, the government wishes to provide clearer general framework for the cooperation between press companies and digital platforms as a way to improve the quality of Indonesian journalism and to prevent negative contents, while rejecting any assumption that the Perpres was designed to control the press or to reduce the freedom of the press.

The Perpres was drafted through a long process where various stakeholders such as the Press Council, press companies as well as press associations were involved not only in submitting suggestions but also in series of debate and discussion. The government also admitted that the it still has a number of homework, among others to anticipate all risks that may surface – including any possible feedbacks from digital platforms and from general public as the end users – during the transition period until the Perpres is fully in force six months after the enactment date.

The government also claimed that it has done many efforts in support of domestic press industry, including prioritizing government’s spending for advertisements locally.

According to the Perpres, companies providing digital platforms bear the responsibilities of refraining or ceasing from commercializing news contents that are not in line with the Press Law; ensuring fair treatment for all press companies in providing their digital platform services; providing the best possible assistance in prioritizing facilitation and commercialization of news published by press companies; organizing trainings and programs that support quality and responsible journalism; giving their best efforts in designing news distribution algorithm that supports the values of quality journalism in accordance with the values of democracy, diversity, and the laws; and cooperating with press companies.

Also according to the Perpres, cooperation between digital platform companies and the press may take various forms, such as paid licenses, revenue sharing, news users aggregate data sharing, or other agreeable forms that are compliant to existing laws and regulations. In any event of dispute between the two entities, each either jointly or severally may also take on out of court legal action through arbitration or other forms of alternative dispute resolutions.

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According to LMKN, in 2023 it managed USD 3,510,134.29 in performing rights royalties. Officials of LMKN however were hopeful that the number was not final as of the date of announcement since the cut-off date for accounting purpose was on December 30, 2023, while royalty collection was actually still ongoing. A further amount of USD 1,321,659.05 is expected to be added to the total number when all collection for 2023 has been accounted for.

Based on the announced amount alone, the year 2023 saw 58% increase in royalty collection revenue as compared to collection made in the preceding year, which amounted to USD 2,227, 899.67. Pursuant to Government Regulation no. 56 of 2021 (PP 56/2021) concerning Management of Song and/or Musical Royalties, collection made by CMOs under LMKN’s coordination is targeted at fourteen sectors of commercial public services, which consists of 1) commercial seminars and conferences; 2) restaurants, cafes, pubs, bars, bistros, night clubs and discotheques; 3) music concerts; 4) airplanes, buses, trains and passenger ships; 5) exhibitions and bazaars; 6) movie theatres; 7) ring back tone for commercial/business numbers; 8) banks and offices; 9) shops; 10) recreation centers; 11) televisions; 12) radios; 13) hotel rooms and facilities; and 14) karaoke.

In 2023 karaoke sector again topped the list by contributing almost half of the revenue with USD 1,436,723.63, experiencing 105% increase from the sector’s revenue in 2022. Biggest jump of revenue for 2023 is however contributed by music concerts with 15,913%; from only USD 1,952.21 in 2022 to USD 312,601.00. Such a gigantic increase is allegedly prompted by post Covid-19 situation as live music events are much more feasible to be held nowadays. Significant increase was however also experienced by banks and offices as well as exhibitions and bazaars with 7,538% and 1,040% respectively.

The LMKN was established in 2015 as mandated by the Law no. 28 of 2014 concerning Copyrights for the purpose of consolidating collection of performing rights for musical copyrights as well as related rights that – prior to its existence – was collected independently by various private collective management organizations (LMKs). As of now, the LMKN claims to represent more than 6,000 rights owners all over Indonesia who gave their collection mandates through 14 LMKs, i.e. KCI, WAMI, RAI, PELARI, SELMI, PAPPRI, ARDI, ARMINDO, SMI, PRISINDO, PROINTIM, LKB, CNS and PKU.

Chair Commissioner of LMKN, Dharma Oratmangun, admitted that his organization is still facing many challenges and obstacles in fulfilling the royalty collection potentials, with even in his own pessimistic estimation should at least reach USD 10 million annually. Among the challenges is to build an IT-based integrated songs and music information system (SILM) as mandated by the PP 56/2021, which would enable users to meet their royalty obligations with more convenience while at the same time facilitate more appropriate distribution to rights owners based on actual usage.

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According to the company’s representative, Joegianto, in a media briefing held on November 14, 2023, Indonesia is still lacking talents on semiconductor technology, a situation of which could hinder future investments for local electronics industry. The company therefore tries to respond to that problem – Joegianto claimed – by providing chip design trainings for students of vocational schools up to universities.

Training’s curriculum is being formulated by the company in cooperation with thirteen local universities including Bandung Institute of Technology, Surabaya Institute of Technology, Gadjah Mada University and Bina Nusantara University. The training itself will be carried out by a non-profit foundation established by companies, and will be provided to students free of charges, funded by donations from both the government and private companies.

While Joegianto admitted that currently it is still too costly to initiate domestic manufacturing of semiconductor chips and thus production will instead be outsourced to foundries abroad, the main objective of the planned trainings is to build company’s portfolios of semiconductor chip designs. The company, according to Joegianto, fully realized the real value of intellectual property rights ownership on the design, which is much higher than the value of the actual chip itself.

In the future, the company envisioned itself as licensing its IPs on semiconductor chip designs to other manufacturers domestic and abroad.  The training is planned to start in 2024 as the company already sets the target of having 50 up to 100 chip designers in the next five years.

Polytron was established as PT Indonesian Electronic & Engineering in 1975 in the small town of Kudus, Central Java Province, in cooperation with Dutch electronics company Philips as a technology transfer arrangement. The company is part of an Indonesian conglomerates Djarum Group, and was the group’s first undertaking outside tobacco industry. Television sets has always been its backbone product, along with other product lines such as audio system, refrigerators, washing machines, air conditioners, up to smartphones.

Aside from two manufacturing plants in Kudus and Demak, both in Central Java, the company also maintains a research and development division that currently employs up to five hundred researchers in various technology fields.

Intellectual property rights protection on integrated circuit layout design in Indonesia is currently regulated under Law no. 32 of 2000 concerning Integrated Circuit Layout Design (DTLST), and is administered by the Directorate of Patent, Integrated Circuit Layout Design and Trade Secrets of the Directorate General of Intellectual Property, Ministry of Laws and Human Rights of the Republic of Indonesia.

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SMBR is a state-owned company that was established in 1974 by two state-owned cement companies, PT Semen Padang and PT Semen Gresik, with main manufacturing plant in the town of Baturaja, Ogan Komering Ilir Regency, South Sumatera Province, Indonesia. It became a public limited liability company (PT, Tbk.) following the initial public offering (IPO) in 2013, after which it is listed at the Indonesian Stock Exchange. In 2022, the Indonesian government transferred the majority of its shares in SMBR to PT Semen Indonesia, Tbk., (SMGR) another state-owned company that serves as holding to other cement manufacturing state-owned companies.

According to the corporate secretary of SMGR, Vita Mahreyni, the granting of the patent has officially confirmed SMBR’s status as the first among Indonesian cement manufacturers that successfully produces white clay as by-products. Vita further explained that white clay is an important ingredient for producing nitrogen-phosphate-kalium (NPK), and the patent obtained by SMBR would amplify SMGR’s business opportunity from the optimalization of resources and efficiency of its production process.

Vita claimed that SMBR has been elaborating on the potential of white clay business since 2019 with in-house research and development in order to come to more efficient production with better quality of the resulting product. President Director of SMBR, Suherman Yahya, added that the patent is an important achievement for his company. Yahya further professed that until the third quarter of 2023, revenue from white clay sales had seen 13% increase to the amount of IDR 27 billion as compared to the same period in previous year, and contributed up to ten percent to his company’s increase in total revenue.

Yahya expected that the patent would give SMBR competitive advantage in producing white clay for NPK fertilizer, which in turn would benefit national fertilizer industry in a way that it maintains consistent availability of quality white clay.

According to the published abstract, the patented invention disclosed a process for producing white clay using vertical roller mill to roll selected mineral ingredients that has been crushed to the size of less than 80 millimeters. The resulting white clay powder would then be dried using the remaining hot gas from the furnace for one hour in order to reduce its H2O content to as low as 7%. The specification of resulting white clay from this process would also contain less than 50% SiO2, more than 9% Al2O3, more than 75% particles sized 100 mesh and less than 60% particles sized 325 mesh.

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A number of agendas were discussed during the 71^st AWGIPC, including the progress of Scooping Study previously set out to identify AWGIPC’s priority areas, preparation for upcoming negotiation on Upgraded IP Framework Agreement, implementation status of the ASEAN IPR Action Plan 2016-2025. Also discussed were potential for developing the action plan beyond 2025, along with supports and coordination among ASEAN members as well as dialogue partner countries.

ASEAN members are now consisting of – in alphabetical order: Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam; with Papua New Guinea and Timor Leste have been included as an observer states. Australia, Canada, China, India, Japan, Mongolia, New Zealand, North Korea, Pakistan, Russia, South Korea, Sri Lanka, United States, as well as the European Union are considered as dialogue partners within various frameworks.

Director General Min Usihen as the head of DGIP emphasized on Indonesia’s preparedness in supporting all programs as agreed upon within the ASEAN IPR Action Plan 2016-2025, along with plans for beyond 2025 in order to anticipate the rise of new technologies that would affect ASEAN’s IPR landscape. In her written statement, Min confirmed that currently Indonesia has already been leading in several initiatives of the Action Plan, such as copyrights; genetic resources, traditional knowledges and traditional cultural expression (GR-TK-TCE); and IPR helpdesk.

For GR-TK-TCE in particular, Min stated that Indonesia’s take on leading the discussion is based on the consideration of the country’s experience on IPR enforcement in relevant fields, due to Indonesia’s rich cultural as well as natural diversities. Min also reported to the forum that as of July 7, 2023, DGIP has signed a cooperation agreement with World Intellectual Property Organization (WIPO) for the establishment of an Indonesian IP Academy. The institution would bear the role of disseminating IPR information to the public, as well as educating stakeholders on IPR matters. The implementation for IP Academy initiative itself was delayed following its initial submission the 63^rd WIPO General Assembly meeting in Geneva, on August 30, 2022.

According to Min, following the Indonesian IP Academy, all ASEAN member countries now are encouraging Indonesia to help prepare for establishing an ASEAN IP Academy, which is planned to be ready after 2025.

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Article 10 of the Law 28/2014 forbids owners of shopping establishments from allowing sales and/or reproduction of copyright or related rights infringing goods within the establishment. Article 114 complements Article 10 with criminal sanctions, which are provided in the form of maximum IDR 100 million (approximately USD 6,500). Different from last year’s judicial review where the plaintiffs demanded for revocation of the disputed articles 18 and 25, in their lawsuit Aquarius instead requested the court to broaden interpretation of the Articles 10 and 114 so as to include digital service platforms where user generated contents (UGC) are uploaded.

If allowed by the court, prohibition under Article 10 as well as the respective criminal sanctions under Article 114 would also apply to UGC-based digital services platform, which would no longer be allowed to give way to sales, transmission, and/or reproduction of infringing digital products within the platform.

One of witnessed brought by the Aquarius, Yudis Dwikorana, composer of several hit songs  for big names in Indonesia’s pop music scene especially in the 90s, in his oral statement before the court on November 11, 2023, claimed that he suffers from significant drop of royalty income as compared to what he usually received during the days of cassettes and CDs. According to Yudis, his revenue from May 2020 to May 2021 for almost three million views on YouTube amounted to only IDR 972.792,00 (approximately USD 63). He also complained also against bulks of his works that have been uploaded illegally in various digital platforms, which contributes significantly to his drop of royalty revenue.

Similar claim and complaint was also expressed by Hari Tjahjono, composer of  an extremely popular family song titled “Harta Berharga (Valuable Treasure)”. The song was used as soundtrack of a local tv series called “Keluarga Cemara (Cemara’s Family)”, which tells heartwarming stories about a humble yet very happy family with three kids. The song gains its popularity due to public admiration to the series, which itself had been remade into movies.

Before the court, Hari demanded more responsibilities from digital platform providers that he claimed as “those who opened the doors for his works being uploaded to the internet regardless of his consent as the creator”.

The proceeding at the Constitutional Court is still ongoing at the time this article is written.

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