Patent Implementation by Patent Holders in Indonesia

The Minister of Law and Human Rights (“ Minister ”) has issued Regulation of the Minister No. 15 of 2018 on Patent Implementation by Patent Holders (“ Regulation 15/2018 ”), which serves as an implementation of Article 20 of Law No. 13 of 2016 on Patents (“ Patents Law ”). [1] In essence, Regulation 15/2018 addresses the obligation of patent holders to implement their patents as part of the patent registration process in Indonesia.Patent ImplementationIn order to put the patent-holder obligation into its proper context, it is important to understand the basic concept of patents in Indonesia. Patents refer to exclusive rights which are granted by the government to inventors for certain time periods for inventions within the technology sector. Through the exercising of said rights, inventors can either implement their inventions themselves or give permission to other parties to do so. [2] Inventors or other appointed parties who have successfully registered their patents (“ Patent Holders ”) are entitled to either exploit their inventions themselves or to permit other parties to do so. This exclusive right grants its holders the right to produce, use, sell, import, lease or transfer patented products, including the provision of patented products for sales purposes, as well as lease or transfer to other parties. [3] Along with the abovementioned rights, Patent Holders are required to implement their patents by manufacturing their patented products or utilizing their patented processes within Indonesia. [4] Furthermore, Regulation 15/2018 explicitly mandates that such activities should support efforts to transfer technology, attract further investment and provide more job opportunities. [5] Postponement of Patent ImplementationIn cases where Patent Holders are not yet able to implement their patents within Indonesia, Regulation 15/2018 authorizes Patent Holders to postpone said obligation for a maximum period of five years by submitting an application to the Minister along with the underlying reason for the postponement. [6] However, it should be noted that the abovementioned patent implementation postponement application must be submitted by Patent Holders by no later than three years from the date of the relevant patent registration being granted. [7] Should the Minister decide to grant the postponement application, then the Minister will notify the relevant Patent Holders and the postponement will become effective starting from the date of the postponement decision. Finally, patent implementation postponement periods may be extended on condition that valid reasons are provided for said extensions. [8] Regulation 15/2018 has been in force since 11 July 2018.ss [1] For more information on the Patents Law, see ILB No. 2929 and ILD No. 466 . [2] Art. 1 (1), Patents Law and Art. 1 (1), Regulation 15/2018. [3] Art. 19 (1), Patents Law. [4] Arts. 1 (3) and 2 (1), Regulation 15/2018. [5] Art. 2 (2), Regulation 15/2018. [6] Art. 3, Regulation 15/2018. [7] Art. 4, Regulation 15/2018. [8] Arts. 5 and 6, Regulation 15/2018.