Patent Draft Bill to Promote National Innovation

The individual articles of the Patent Draft Bill, currently under discussions with the legislature are moving towards the applicable standards as presently being used by other countries, particularly of those of the developed nations. Adjustments are made following the development of new technologies and innovations in Indonesia and the world. Constant updates of new innovations in Indonesia are necessary during this process in order to achieve maximum needs in the society and that the law is then applicable longer term into the future. This Draft Bill is a form of the government's response to rapid developments in the economy and trade. The government is of the view that most of the provisions under the current Patent Law is no longer adequate to keep up with the latest developments and societal needs. Therefore, as the second amendment, this Draft Bill is expected to provide a clearer and more structured legal basis regarding patents and promote national innovation.

One of the important and interesting changes introduced by the Draft Bill is a development in the grouping of inventions. These developments include clarifying protections for inventions related to computer programs. In this Draft Bill, protection upon computer programs shall be governed in line with the existing statutory articles of the prevailing Indonesian Copyright Law. This could mean that any patent application for computer programs shall be governed by provisions that are already existent in the Copyright Law. Works related to source codes, algorithms and software shall then continue to be governed by the Copyright Law and not by the Patent law. Meanwhile, the computer implemented inventions are included into the categories of systems, methods and uses by the expanded definition of “inventions” that have been included in the Patent Law, and therefore can be effectively submitted as a patent. This change is expected to eliminate confusion in determining the appropriate type of intellectual property to protect a computer program.

Additionally, the Draft Bill introduces among others a grace period in the submission of registration with priority rights. Currently, the existing Patent Law does not provide an opportunity for applicants to enjoy their priority rights when the 12 (twelve) months window period has expired. However, once the Draft Bill has been promulgated and enacted, there will be an additional 4 (four) months grace period that inventors can use to still benefit from their priority rights as requested in their applications. The grace period for submitting patent applications for prior disclosed inventions is also planned to be extended through the Draft Bill, from 6 (six) months to 12 (twelve) months before the filing date. This new provision would provide more room for inventors in seizing the opportunity to protect their inventions in Indonesia.

What has been written about are just merely two examples of proposed amendments of the Patent Law. There are still around 20 (twenty) other important issues of the present law that shall undergo significant changes. Upon the enactment of the Draft Bill, then the government shall then immediately have to issue the implementing regulations thereto. This is because the objectives of changes and improvements set out in the Patent Law can only be achieved optimally if the derivative legal products are also immediately adjusted. With appropriate provisions, it is expected that all the potential offered by the Patent Law can provide legal certainty and better protection for patent holders and business actors.

The interest of the Indonesian Government in passing the Patent Law in the foreseeable future could indicate that the discussions on the law has entered to its crucial stage, where parties who has the relevance on the changes and adjustments introduced are welcome to give input on the Draft Bill to help ensuring the amendment will lead to a better practice standard of patent protection in Indonesia.

K&K Advocates has groups of lawyers whose expertise in patent protection and are actively and closely monitoring the development of the Draft Bill. Hence, should you wish to know more about the Draft Bill, you are welcome to establish contact with us and call on Mrs. Risti Wulansari at risti.wulansari@kk-advocates.com and Ms. Rizka Khairunnisa at rizka.khairunnisa@kk-advocates.com (RKH/SAS/GMW).