Asia Trademark Desk

Indonesia is one of the fastest-growing consumer markets in Asia, with more than 270 million people and a middle class that buys everything from packaged food to software subscriptions. For Indian exporters, franchisors and technology companies, it is an obvious market. It is also a market where brand owners regularly lose control of their own names, because Indonesian trademark law follows a strict first-to-file principle and local parties are quick to register foreign marks that are not yet protected.

This article explains how trademark protection works in Indonesia, what happens at each stage of the process at the Directorate General of Intellectual Property (DGIP), and how to reduce the risk of a squatted mark.

First-to-File: The Rule That Shapes Everything

Under Law No. 20 of 2016 on Marks and Geographical Indications, rights in a trademark are obtained through registration. Use in the market, however long, does not by itself give the owner an enforceable right. The first person to file a valid application for a mark generally has the stronger claim.

The law does contain protections against bad-faith applications, and owners of well-known marks can oppose or seek cancellation of a copycat registration. In practice, though, proving bad faith or well-known status in Indonesia takes time, evidence and legal cost. Filing early is almost always cheaper than litigating later.

For this reason, Indian businesses should consider filing in Indonesia before they appoint a distributor, attend a trade fair or start marketing to Indonesian customers. Distributors and agents who register the principal's brand in their own names remain one of the most common problems we see in the region.

How the DGIP Process Works

Applications can be filed directly with the DGIP through a registered Indonesian IP consultant, or through the Madrid Protocol by designating Indonesia in an international application. Foreign applicants without a place of business in Indonesia must act through a local registered consultant for national filings.

The process has four broad stages:

1. Formality check. The DGIP confirms that the application contains the required details, a clear representation of the mark, the list of goods or services, and the filing fee.
2. Publication. The application is published for two months. During this period any third party may file an opposition.
3. Substantive examination. An examiner reviews the mark on both absolute grounds (distinctiveness, descriptiveness, conflict with public order) and relative grounds (similarity to earlier marks for similar goods or services). If an opposition was filed, the examiner considers it at this stage.
4. Registration. If the mark is accepted, a registration certificate is issued. Protection lasts ten years from the filing date and can be renewed for further ten-year periods.

For those who want a quick orientation before instructing counsel, this is a practical overview of how Indonesian trademark filings are handled, including the documents that are usually requested.

Common Objections and How to Avoid Them

Indonesian examiners frequently raise objections based on earlier marks, and the threshold for similarity can be broad. A few habits help reduce the chance of refusal:

• Search before filing. A search of the Indonesian register, including pending applications, identifies obvious conflicts. Because Indonesia examines relative grounds on its own initiative, an earlier similar mark will usually lead to a refusal.
• Draft the specification carefully. Indonesia follows the Nice Classification, and vague or overly broad descriptions can be questioned. Specific, commercially accurate terms tend to move faster.
• Consider transliteration. If the brand is sold in Indonesia under a local-language version, it may be sensible to protect that version as well.
• Keep documents ready. A signed power of attorney and, where priority is claimed, a certified copy of the Indian application may be required.

After Registration: Use It or Risk Losing It

An Indonesian registration can be removed on the application of a third party if the mark has not been used for three consecutive years from registration or from its last use, unless there is a valid reason for non-use. Brand owners should keep evidence of use in Indonesia, such as invoices, import documents, packaging and advertising.

Registration also opens the door to enforcement. Owners can bring civil infringement claims, file criminal complaints in serious cases, and record their marks with customs to help intercept counterfeit imports.

A Short Checklist for Indian Businesses

• File before appointing a distributor or launching marketing in Indonesia.
• Put written IP clauses in distribution and agency agreements, confirming that the brand belongs to the Indian principal.
• Search the Indonesian register first, as relative-grounds refusals are common.
• Decide between a national filing and a Madrid designation based on how many countries are being covered.
• Diarise the renewal date and keep evidence of use in the Indonesian market.

Final Thoughts

Indonesia offers real commercial opportunity, but its first-to-file system does not reward waiting. A well-prepared application, filed before the brand becomes visible in the market, is the most effective protection an Indian company can buy there.

For advice on filing strategy, clearance searches or a squatted mark that has already been registered, please contact the S.S. Rana & Co. team.

Office Location

S.S. Rana & Co. 81/2, Aurobindo Square, Aurobindo Marg, Adhchini, New Delhi 110017, India Phone: +91-11-40123000 Email: info@ssrana.com Website: https://ssrana.in/