Assignment of Registered Trademarks as an Alternative Non-Litigation Dispute Resolution



By: Agus Candra Suratmaja & Nadya Prita Gemala

Both are Advocates, Registered IP Consultants and Registered PVT Consultants, as well as Non-Judicial Mediators.

A trademark that is still under application or already registered at the Directorate General of Intellectual Property (DGIP), Ministry of Law of the Republic of Indonesia, may be transferred from one party to another. The legal basis for trademark assignment is regulated under Article 41 paragraphs (1) to (9) of Law No. 20 of 2016 on Trademarks and Geographical Indications, and further under Minister of Law and Human Rights Regulation No. 67 of 2016 as amended by Regulation No. 12 of 2021 concerning Trademark Registration.

Below are several important points regarding trademark assignment:

Types of Trademark Assignment

A trademark application or a registered trademark may be transferred on the following grounds:

1.     Inheritance

2.     Testament (will)

3.     Waqf

4.     Grant

5.     Agreement

6.     Other causes permitted under prevailing laws and regulations

Explanation:

“Other causes permitted under prevailing laws” refer to transfers that do not violate legal provisions, such as change of trademark ownership due to dissolution of a legal entity, restructuring, merger, or acquisition (see Article 41 paragraph (1) of Law No. 20 of 2016).

In the event of an assignment, the assignor and assignee must provide documentary evidence supporting the legal basis of the transfer.

Additional Supporting Documents

In addition to the documents mentioned above, where the assignment is filed through an IP Consultant, further documents are typically required:

a. Certified copy of the legal entity deed if the assignee is a legal entity.
Usually supported by: Business Identification Number (NIB), Company Tax ID (NPWP), Deed of Amendment and approval from the Directorate General of Legal Administration (AHU), if applicable.

b. Identity documents of the previous trademark owner and the new owner:

·        Indonesian ID card (KTP) for Indonesian citizens

·        Passport for foreign nationals

c. Power of Attorney for recording the trademark assignment through an IP Consultant (mandatory if the applicant is a foreign national or foreign legal entity).

Assignment Documents Must Be Sworn Translated

If the assignment documents are in a foreign language, an Indonesian translation prepared by a sworn translator must be attached (see Article 39 paragraph (2) of Regulation No. 67 of 2016).

Examination Process of Trademark Assignment

Duration of Examination

Under Article 43 paragraph (3) of Regulation No. 67 of 2016, the examination of a trademark assignment recordal application shall be completed within 15 working days from receipt of the application. Day shall refer to working day (see Article 1 paragraph (14) of Regulation No. 67 of 2016)

Timeframe for Recordal by DGIP

Within a maximum of 6 (six) months from the date the application and required documents are declared complete, the Minister shall record the assignment (Article 45 paragraph (1) of Regulation No. 67 of 2016).

Marks of the Same Kind Must All Be Assigned to the Same Party

That if we have a coffee shop trademark certificate for example under the mark name Juragan Kopi in Class 43 for the type of coffee shop services to be transferred in ownership to a third party, then if we have a trademark certificate in Class 30 for the type of coffee goods, then this Class 30 trademark certificate must also be transferred to the same party. Because Coffee Shop and Coffee are both of the same kind related to Coffee even though coffee shop is in Class 43 and coffee is in Class 30. This is in accordance with the explanation in Article 41 Paragraph (2) of Law Number 20 of 2016 concerning Trademarks and Geographical Indications as follows:

“The Transfer of Rights over a registered Mark by a Mark Owner who has more than one registered Mark which has similarity in its essential part or in its entirety for goods and/or services of the same kind may only be carried out if all of those registered Marks are transferred to the same party.”

Thus based on the explanation of the article above, the owner of the Juragan Kopi mark, if wishing to transfer his trademark certificates in Class 43 for coffee shop services and Class 30 for coffee goods, then both related classes must be transferred to the same party.

Recording of Trademark Assignment Must Be Recorded at DGIP, Ministry of Law of the Republic of Indonesia

That based on Article 41 Paragraph (6) of Law Number 20 of 2016 concerning Trademarks and Geographical Indications it is stated that:

“Transfer of Rights over a registered Mark that is not recorded shall have no legal effect on third parties.”

The meaning of the above Article is, if Party A as the initial trademark owner only carries out the transfer of rights by Notarial deed to Party B, but the Deed of Transfer of Rights is not recorded at DGIP, Ministry of Law of the Republic of Indonesia, then if at some time Party B will make a police report or a lawsuit against another party suspected of infringing its mark, then it will not be able to create legal consequences toward third parties, because on the trademark certificate it is still under the name of Party A. Because Party B has not yet carried out the recording of the transfer of its trademark rights to DGIP, Ministry of Law of the Republic of Indonesia. Therefore, it is very important to carry out the recording of the transfer of trademark rights at DGIP, Ministry of Law of the Republic of Indonesia with the assistance of an official Intellectual Property Consultant registered at DGIP, Ministry of Law of the Republic of Indonesia.

Trademark Assignment and its Recordal Before the DGIP as an Alternative to Overcome Cancellation Lawsuits

Where a party discovers a registered trademark in Indonesia owned by a third party that is identical or substantially similar to its own mark, an assignment followed by recordal at DGIP may serve as an amicable settlement to avoid more coercive legal action such as a trademark cancellation lawsuit before the Commercial Court.

Interested parties (directly or through legal counsel) may approach the registered owner to negotiate assignment, typically involving compensation. Once an agreement is reached, a deed of assignment can be prepared, signed by both parties, and notarized before an Indonesian Notary Public. If one party is foreign, representation by legal counsel or local representative is possible.

The IP Consultant will then file the assignment recordal at DGIP. Once recorded, ownership officially transfers to the assignee.

Conclusion

Such negotiations are best handled with the assistance of experienced IP lawyers or IP consultants.

For further inquiries or if you have an interest in a registered trademark in Indonesia and wish to explore assignment options, please feel free to contact us at:

Email : info@konsultanki.com

Whatsapp : +62813 17 906 136

We will be pleased to assist you further.

 

Posting Komentar

0 Komentar