The ASEAN economy has flourished in recent years, showcasing unprecedented growth and dynamism. Indonesia is the world's fourth most populous country and the largest economy in ASEAN. Thanks to its vast market potential and rich natural resources, the country has become a key market in this region, attracting an increasing number of global enterprises to invest and expand. More and more enterprises are coming to Indonesia to establish their IP and protect their innovative achievements. High-quality IP service agencies are indispensable in this process.
Founded in 1965 and headquartered in Jakarta, Indonesia, Am Badar & Am Badar has aimed to become the most reliable and comprehensive international IP law firm since its inception. Rooted in the Indonesian market and continuously expanding, it has grown to become one of the largest IP law firms in the country. The firm offers a wide range of services, including patent, trademark, copyright, and design searches, registrations, infringement monitoring, and litigation, etc. It is particularly active in patent and trademark services. In 2023, Am Badar & Am Badar held a 12% market share in the patent application field, ranking first in Indonesia, with Chinese clients contributing 20% of the applications.
Recently, the author had the privilege of speaking with Mahesa Yudha Kumbara, General Manager of Am Badar & Am Badar, along with its Associate Reihan Faiz and other team members, to discuss various topics covering Indonesia's latest IP developments, the firm's business status, and its expectations for the Chinese market.
Intellectual Property Observers:
Could you briefly introduce the IP industry in Indonesia and Am Badar & Am Badar's positioning within it?
Am Badar & Am Badar：
The IP applications in Indonesia are experiencing growth, with a notable increase in 2023. The top five categories for IP filings are copyright, trademark, patent, industrial design, and geographical indication.
Copyright leads the rankings due to a recent change in the IP filing system by the Indonesian IP office. Under the new system, copyright applications can be granted within a single day, resulting in a substantial increase in filings, predominantly from local applicants.
Trademark filings are the second highest. Many applicants, both local and foreign, seek trademark protection in Indonesia due to its close ties with business activities.
Patent filings rank third, with a majority of applicants coming from foreign countries. The IP5 countries, in particular, dominate patent applications in Indonesia.
Industrial design is the fourth most common filing category. The number of industrial design applications has remained relatively stagnant in recent years. This is largely due to a lack of local understanding of the differences between industrial design, patent, and trademark, as well as outdated industrial design laws. Indonesia still operates under a law enacted in 2000, though the government plans to introduce new regulations in the coming years, which are expected to boost the number of filings.
Geographical indications rank fifth. Many geographical indications, especially those related to food products like coffee, are protected in Indonesia. However, since these filings typically come from organizations or communities rather than individuals, the government continues to encourage more groups to apply.
Am Badar & Am Badar is actively involved in assisting clients with their IP applications. Founded in 1965, we are one of the largest IP law firms in Indonesia, offering comprehensive services covering copyright, trademark, patent, and industrial design. However, we are mostly active in patent and trademark. Last year, we obtained the highest market share, 12%, for patent filings.
Intellectual Property Observers:
What competitive advantages does Am Badar & Am Badar have compared to other similar institutions in Indonesia?
Am Badar & Am Badar：
One of our key advantages over competitors is our proprietary filing management system, AMFS (Am Badar & Am Badar Filing Management System), which safely encompasses our entire client database. This system ensures that we can provide the best possible services to our clients.
Another advantage is the technical expertise of our staff. In our patent team, we have specialists in every field, ensuring that clients are matched with patent attorneys who have relevant technical backgrounds.
The third advantage is that we have had a very good relationship with the Indonesian IP office since we were established in 1965. This is critical and why our clients can put their trust in us. Because in some cases, when there is a deadlock, communication with the Indonesia IP office is crucial.
Finally, we adhere to a customer-first service philosophy. We regularly follow up with clients to understand their needs and gather feedback, enabling continuous improvement in our service quality. When clients choose us, we enter into an agreement that guarantees their needs will be addressed within two days. Furthermore, we are developing a tracking system that will allow clients to monitor the progress of their IP applications in real time. We also provide comprehensive after-sales support, including timely reminders about important matters such as upcoming patent expirations. Not all the similar institutions in Indonesia have these advantages.
Intellectual Property Observers:
How is the current IP protection environment in Indonesia? What significant changes have occurred in recent years?
Am Badar & Am Badar：
As we have mentioned just now, Indonesia is seeing an increasing number of IP applications in recent years, which is in line with its current IP protection environment. The awareness of IP in Indonesia is also increasing each year, even though we have yet to see a very high awareness among the locals. However, if we look from the business context, Indonesia is really opening the door for foreign investors. The government is giving more opportunities and advantages to foreign investors, including from China.
One of the most significant changes in recent years is the introduction of the Job Creation Law, which includes amendments to Indonesia's IP laws, specifically the trademark and patent laws. These amendments have streamlined administrative processes, making it easier for foreign investors to file trademarks and patents in Indonesia. Enacted in 2020 and applied since 2023, the new regulations have reduced the trademark examination process to just 90 days, down from much longer periods.
Additionally, on July 30, 2024, the Indonesian Constitutional Court issued a new decision regarding non-use lawsuits related to trademarks, extending the period for "cancellation of trademarks due to non-use" from three years to five years. This ruling is final and binding, meaning that any third party wishing to file a cancellation lawsuit for non-use must prove that the trademark has not been used for five consecutive years.
Am Badar & Am Badar is dedicated to meeting client needs and keeping them updated on the latest developments in Indonesia’s IP environment. We regularly inform our clients about any changes in IP laws and practices, ensuring they can effectively adjust their strategies to protect their IP rights.
Intellectual Property Observers:
How is Am Badar & Am Badar working to bridge the gap between client needs and Indonesia's IP enforcement capabilities? What progress and achievements have been made?
Am Badar & Am Badar：
Since Indonesia's IP enforcement is still evolving, there is often a gap between regulations and practice. Many people are unaware that they are infringing on someone else's trademark or patent, which poses a challenge, especially for foreign clients trying to enforce their rights.
As an IP firm, we take on the responsibility of helping our clients enforce their rights while also educating the broader public about the importance of IP protection. In terms of rights enforcement, we offer comprehensive monitoring services both before and after the filing of IP. Upon detecting any potential infringements, we promptly notify our clients so they can take appropriate legal action or negotiate with the infringing party. As for the general lack of awareness in Indonesia, we hold free seminars and workshops to raise public awareness about IP rights. Through these efforts, we aim not only to support our clients but also to contribute to improving IP enforcement in Indonesia by educating people and preventing infringement before it escalates.
Intellectual Property Observers:
In recent years, an increasing number of Chinese companies have chosen to establish and protect their IP in Indonesia. However, they often face various challenges in this process. What are these common challenges, and could you provide some practical advice to address them?
Am Badar & Am Badar :
We've observed a significant increase in Chinese companies seeking our services, particularly for IP protection in Indonesia, including trademarks, patents, and industrial designs. The nature of the challenges they face remains consistent. We always provide strategic solutions tailored to each client's specific needs and circumstances.
The primary challenge we encounter in Indonesia revolves around trademark registrations. Due to Indonesia's first-to-file system, where the first to register a trademark is granted protection, many Chinese companies find that their desired trademarks have already been registered by local entities, often in bad faith. To address this issue, we frequently advise our clients to file cancellation actions against these pre-existing trademarks. If the client prefers a more amicable solution, we also engage in negotiations with the current trademark holders to secure permission for our clients to register their trademarks in Indonesia.
In addition to trademark challenges, we also deal with infringement cases, particularly in the e-commerce market, which remains a significant issue for IP protection in Indonesia. When infringements occur, we recommend that our clients file infringement reports to halt the unauthorized sale of their products and request the removal of these items from e-commerce platforms.
Intellectual Property Observers:
How is Am Badar & Am Badar’s business currently doing in China? What are your future expectations for this market?
Am Badar & Am Badar：
China is one of our largest clients, contributing to almost 20% of our application registrants. Last year, we had a total of 34 clients from China, generating approximately 200 orders. Among these clients, 23 were for patent applications, 7 for trademarks, and 4 for design registrations, with the majority being in telecommunications technology. Notably, one of our biggest clients is Xiaomi, which utilizes our services not only for registrations but also for legal cases. Other significant clients include Huawei Technologies and Beijing Zitiao Network Technology. In the past year, we processed 177 patent applications from China, the highest number in Indonesia, making our firm the leader in handling Chinese patent registrations in the country.
Given the strengthening relationship between the Indonesian and Chinese governments, we anticipate that more Chinese companies and individuals will seek to establish businesses in Indonesia. We hope that these companies will trust us to assist in protecting their IP here. We are also optimistic that the Chinese market will gain confidence in filing IP applications in Indonesia, not only because we aim to be their trusted partner on the ground but also because Indonesia's IP environment is improving. The government is updating regulations, and we expect to see stronger efforts in protecting and enforcing foreign IP in the coming years.
Intellectual Property Observers:
What challenges has Am Badar & Am Badar encountered in successfully handling such large number of IP applications for Chinese clients? How has the firm earned their trust?
Am Badar & Am Badar
When entering the Indonesian market, clients often experience culture shock. Some of our Chinese clients may initially misunderstand the IP system in Indonesia due to their experiences in other countries, particularly within ASEAN. For instance, clients familiar with Singapore's more mature IP system may find the differences in Indonesia surprising. During this period, our deep understanding of the Indonesian IP system and its operations can greatly assist them.
However, one major challenge we encounter is the language barrier, which can hinder effective communication and information exchange. To address this, we frequently arrange direct meetings with clients. These meetings allow us to clearly explain the complexities of the Indonesian IP system and resolve any misunderstandings, ensuring clients have a comprehensive and accurate understanding.
Another common challenge is pricing, a universal issue. Our strategy to overcome this is by demonstrating that our prices are always highly competitive. While clients may find lower prices with other law firms in Indonesia, our extensive experience in handling IP matters and our proven track record of success set us apart. If clients still have concerns, we offer tailored services to meet their specific needs, effectively helping them resolve their issues. Despite the challenges, our prices remain consistently competitive.
Intellectual Property Observers:
"Reliable" is one of the core values of Am Badar & Am Badar and is included in the company's vision of building "the most reliable and comprehensive IP law firm in the world." How does Am Badar & Am Badar interpret "reliable"?
Am Badar & Am Badar:
Actually, "reliable" is not just a value for us; it's a spirit that defines our firm. The term "reliable" holds several meanings for us.
First, reliability is rooted in our extensive experience. Since our establishment in 1965, we have not only survived in a volatile market but have also grown and thrived.
Secondly, our reliability is reflected in our services. Am Badar & Am Badar is dedicated to providing high-quality, one-stop IP solutions. We offer comprehensive support, including trademark protection and a wide range of other IP services.
Thirdly, our track record speaks for itself. Over the years, we have won numerous cases for our clients in Indonesia, demonstrating our effectiveness and reliability.
Fourthly, we have strong professional teams across all fields, ensuring we meet all our clients' needs with expertise and precision.
Lastly, we continuously embrace change and development. To safeguard our clients' intellectual property in Indonesia, we stay updated with the latest market trends and legal regulations, ensuring compliance with new laws and practices. This adaptability further underscores our reliability.
