ProdukHukum Perdagangan 14.

LAW NO. 14/2001 DATED AUGUST 1, 2001 PATENT

BY THE GRACE OF GOD ALMIGHTY

THE PRESIDENT OF THE REPUBLIC OF INDONESIA Considering :

a. That in line with the ratification of international agreements by Indonesia, fast developments of technology, industry, and trade, a law that can provide reasonable protection for inventors in needed;

b. That the provision mentioned in point a is needed for creating the fair business competition climate and paying attention to the interest of the public in general;

c. That based upon the considerations specified in points a and b as well as observing the experience in implementing the existing patent law, it is necessary to issue a new patent law to replace Law No. 6/1989 on Patent, which has been amended by Law No. 13/1997 concerning the Amendment to Law No. 6/1989 regarding Patent;

In view of :

1. Article 5 paragraph (1), Article 20 paragraph (2), and Article 33 of the Constitution of 1945;

2. Law No. 7/1994 on the ratification of the Agreement Establishing World Trade Organization (Statute Book of 1994 No. 57, Supplement Book No. 3564);

With the approval of :

THE HOUSE OF REPRESENTATIVES DECIDES :

To stipulate

LAW REGARDING PATENT

CHAPTER I

GENERAL PROVISIONS Article 1

What is meant in this law, by :

1. Patent is an exclusive right granted by the country to inventors with regard to their technological inventions, to exercise their inventions directly or grant approvals to third parties to implement the said inventions for a specified period.

2. Inventions are inventors' ideas, contained into a specific problem-solving activity in the technology field, which can be in the form of products of processes or perfection and development of products or processes; 3. Inventors is an individual or a group of people, who jointly implement the idea contained into an activity

producing invention;

4. Applicant is a party filing an application for patent;

5. Application is application for patent, which is submitted to the Directorate General;

6. Holder of Patent is an inventor as he owner of patent or parties receiving the said right from Patent's owner or other parties receiving further the said right, which is registered in General List of Patent;

7. Proxy is a consultant on Intellectual Property Rights;

8. Auditor is a person appointed as a functional official examining patent by a decree of the Minister because of his/her expertise and tasked to the application substantively;

9. Minister is the minister overseeing a department having a task of fostering in the field of intellectual property rights, including patent;

10.Directorate General is the Directorate General for Intellectual Property Rights, subordinate to the department chaired by the minister;

11.Date of receipt is the date of receipt of an application already fulfilling administrative requirements

12.Priority Rights is a right of an application to submit an application coming from countries taking part in the Paris Convention for the Protection of Industrial Property or the Agreement Establishing the World Trade Organization, in order to obtain an acknowledgment that the date of receipt in the country of origin is the date of priority of the destination country, which is also a member country participating in the two agreements during the period already determined in the said Paris Convention;

13.License is a license granted by a holder of patent to other party based on an agreement regarding the granting of rights to enjoy the economic benefits of a patent, which is protected in a certain period and under certain conditions;

14.Day is working day.

CHAPTER II SCOPE OF PATENT

Part One

Inventions Eligible For Patent Article 2

1. Patent is granted for new inventions containing inventive steps, and applicable in the industry.

2. An invention contains inventive steps if the said invention, for a person having certain expertise in the technical field, is a matter unpredictable before.

3. The judgment that an invention is a matter unpredictable before is done by observing the expertise existing upon the submission of the application, or already existing upon submission of first application, in the case that the said application is submitted with a priority right.

Article 3

1. An invention is deemed new in case that upon date of receipt the said invention is not the same with the technology, which has been disclosed before.

2. The technology, which has been disclosed before, as mentioned in paragraph (1), is technology already announced in Indonesia or outside Indonesia in writing, verbal details or through simulation, or other means, which enable an expert to implement the said invention before :

a. Date of receipt; and b. Priority date.

3. The technology, which has been disclosed before, as mentioned in paragraph 1, cover application documents submitted in Indonesia, which are published on or after the date of receipt with the substantive examination being underway, but the said date to receipt is earlier than the date of receipt of date of priority of the application.

Article 4

1. An invention is not assumed as having been published if, within a period not later than 6 months prior to date of receipt :

a. The said invention has been displayed in an international exhibition held in Indonesia or abroad which is official or acclaimed official or in a national exhibition, which is official or is acclaimed as official; b. The said invention has been used in Indonesia by its inventor in the framework of trial run for research

2. The said invention is also not assumed as having been published if, within 12 months prior to date of receipt, there are other parties who have published it by means of violating the obligation to keep the confidentiality of the said invention.

Article 5

An invention can be applied in a industry if the said invention is applicable in the industry as specified in the application.

Article 6

Inventions in the form of new products or equipment and having practical use value due to their forms, configurations, constructions, or components, can obtain legal protection in the form of simple patent.

Article 7 Patent shall not be granted to inventions of :

a. Processes or products whose announcement and utility or implementation are in violation with laws in forces, religious morality, social order, or decency.

b. Examination, maintenance, treatment and/or surgical methods applied to human beings and/or animals. c. Theories and methods in sciences and mathematics; or

d. i. All creatures, except micro-organisms;

ii. essential biological processes to produce plants or animals, except non-biological or microbiological processes.

Part Two Patent Period

Article 8

1. Patent shall be granted for a period of 20 years as of date of receipt; and the said duration is not extendible. 2. The date of commencement and expiration of a patent right shall be recorded and announced.

Article 9

Simple patent shall be granted for a period of 10 years, starting from date of receipt; and the said period is not extendible.

Part Three Subject of Patent

Article 10

1. Patent shall be granted to inventors and other parties receiving further rights of the said inventors.

2. Should and invention is produced by several individuals jointly, the right to the said invention shall be owned collectively by the relevant inventors.

Article 11

Unless otherwise proven, who is assumed as inventor is an individual or several individuals declared as inventors in application for the first time.

1. The party entitled to obtain patent or an invention, which is produced in working relationship, is the employer; unless otherwise agreed.

2. The provisions as meant in paragraph (1) shall also apply to inventions produced either by employees or workers who utilize data and/or facilities available in their works; even though the agreement does not require them to produce inventions.

3. The inventors mentioned in paragraphs (1) and (2) shall have the right to obtain a reasonable compensation by observing the economic benefits obtained from the said invention.

4. The compensation as mentioned in paragraph (3) can be paid : a. In a certain amount and in lump sum ;

b. In percentage;

c. By means of combining certain amount and in lump sum with prize or bonus; d. By means of combining percentage with prize or bonus; or

e. Other forms agreed by the parties.

5. In the case of disagreement upon the method of calculation and stipulation of the amount of compensation, the decision shall be ruled by the Court of Commerce.

6. The provisions in paragraph (1), (2), and (3) shall not eliminate inventor’s rights to have their names mentioned in patent certificates.

Article 13

1. Based upon the other provisions of this law, parties implementing an invention when an application for patent of the same invention is submitted, shall still be entitled to implement the said invention as former users; even though patent is then granted to the said invention,

2. The provision in paragraph (1) shall also apply to applications submitted with priority rights. Article 14

The provision in Article 13 shall not apply in case that the parties implementing invention as former users, apply by using the knowledge about the said invention from details, pictures, or other information of the invention to which patent is applied for.

Article 15

1. Parties who implement an invention as mentioned in article 13 can only be acknowledged as former users in the case that after patent is granted to similar invention, they submit an application for the said invention to the Directorate General.

2. The application for acknowledgment as former user shall be completed with an evidence proving that the said invention is not implemented by using details, pictures, samples, or other information of the invention, which is applied for patent.

3. Acknowledgment as former users shall be granted by the Directorate General in the form of a certificate issued by former users by paying the costs incurred.

4. Certificate from former users shall expire upon the date of expiration of patent against similar invention. 5. The procedures for obtaining the acknowledgment of former users shall be ruled by a government

regulation.

Part Four

Rights and Obligations of Patent Holders Article 16

1. Holders of patent shall have exclusive rights to implement patent owned by the sand holders and prohibit other parties that without their approval :

a. For product-patent : from making, using, selling, importing, leasing, delivering, or providing for selling purposes, or being leased or delivered the products, which are granted patent.

b. For process-patent : using production process, which is granted patent to produce goods or other actions as specified in paragraph a.

2. In the case of process-patent, the prohibition of other parties from importing process patent without approval, as mentioned in paragraph (1), shall only apply to the import of products solely resulting from the utilization of the process paten owned.

3. The use of patent for educational, research, test, or analysis purposes as long as it does not encumber the reasonable benefits of the patent holders, shall be excepted from the provisions of paragraphs (1) and (2)

Article 17

1. Without reducing the provision in Article 16 paragraph (1), holders of patent holders of patent shall make products or utilize the process, which is granted patent in Indonesia.

2. Should the manufacturing of the said products or utilization of the said process are only fit for regional implementation, the obligation specified in paragraph (1) shall not apply.

3. The exception specified in paragraph (2) can only be approved by the Directorate General if the patent holder has submitted an application in writing complete with the reasons and evidences provided by the authorized institution.

4. Terms and conditions regarding the exception and procedures for the submission of written application as mentioned in paragraph (3) shall be further regulated by a government regulation.

Article 18

Holders of patent of licensees of a patent shall pay annual fees the management and continued validity of the patent.

Part Five

Legal Actions Against Violations of Patent Article 19

Should a product be imported to Indonesia and the process for manufacturing the said product has been protected by patent, which, based upon this law, the holder of the process patent on the basis of the provision in Article 16 paragraph (2) is entitled to take legal actions against the imported product in the event that the said product has been manufactured in Indonesia by using the process protected by patent.

CHAPTER III

APPLICATION FOR PATENT Part One

General Article 20 A patent shall be granted based upon application.

Article 21

Article 22

The application shall be submitted by paying fee to the Directorate General. Article 23

1. Should the application be submitted by an applicant, who is not an inventor, the said application shall be completed with a statement and enough evidence certifying that the applicant is entitled to the said invention.

2. The inventor can examine carefully the application submitted by the non-inventor applicant as mentioned in paragraph (1), and upon his/her own expense, can ask for a copy of the said application.

Article 24

1. The application shall be submitted in writing in the Indonesia language to the Directorate General. 2. The application shall contain :

a. Date, month and year of application; b. Full address of the applicant;

c. Inventor’s name and citizenship;

d. Name and address of attorney, in case that the application is submitted through an attorney. e. Special power of attorney, in case that the application is submitted by an attorney;

f. A statement certifying that the application is requested for patent; g. Title of invention;

h. Claims contained in the invention;

i. Descriptions of the invention, comprehensively containing information regarding how to implement the said invention;

j. Pictures, which are mentioned in the descriptions required for clarifying the said invention; and k. Abstract of the said invention.

3. Further provisions regarding procedures for submitting application shall be ruled by a government regulation.

Part Two

Intellectual Property Rights Consultant Article 25

1. An application can be filed by the applicant or his/he attorney.

2. The attorney as mentioned in paragraph (1) is an intellectual property rights consultant, who has been registered at the Directorate General.

3. As of the date of grant of power, the attorney shall maintain confidentiality of the invention and all application documents up to date of announcement of the said application.

4. Requirements regarding appointment of intellectual property rights consultant shall be ruled by a government regulation, while procedures of appointment shall be ruled by a presidential decree.

Article 26

1. An application submitted by the inventor or applicant, who is not domiciled or who is not having a permanent domicile in Indonesia, shall be submitted through an attorney in Indonesia.

2. The said inventor or applicant as mentioned in paragraph (1) shall state and choose legal domicile in Indonesia for application purposes.

Application With Priority Right Article 27

1. An application with priority right, which is ruled in the Paris Convention for Protection of Industrial Property, shall be submitted within 12 months as of date of receipt of the patent application, which is received for the first time in any country signing the said convention or member of the Agreement Establishing the world Trade Organization.

2. By still considering the provisions of this law regarding requirements that have to be fulfilled in the application, the application with priority rights as mentioned in paragraph (1) shall be completed with priority documents legalized by the officers authorized in the relevant country not later than 16 months as of priority date.

3. Should the requirements specified in paragraphs (1) and (2) have not been fulfilled, the application can not be submitted by using priority right.

Article 28

1. The provision in Article 24 shall apply applications using priority rights.

2. The Directorate General can require the submitted application using priority rights to be completed with : a. legitimate copy letters with regard to the results of substantive examination conducted against the first

patent application abroad.

b. Legitimate copy of patent documents, which have been granted with regard to the first patent application abroad.

c. Legitimate copy of resolution regarding rejection of the first patent application abroad, in case that the application in rejected.

d. Legitimate copy of resolution regarding nullification of patent, which has been issued abroad in case that the said patent has been rejected.

e. Other documents required for enabling judgment that the invention applied for patent is truly construed as new invention, which contains inventive steps and can be applied in industry.

3. The submission of the legitimate copies of the documents specified in paragraph (2) can be completed with a separate additional information issued by the applicant.

Article 29

Further provisions regarding application for evidence of priority rights issued by the Directorate General and application submitted with priority rights shall be ruled by a presidential decree.

Part Four

Time of Receipt of Application Article 30

1. Date of receipt is the date upon which the Directorate General receives application that has fulfilled the requirements mentioned in Article 24 paragraphs (1) and (2) letters, a, b, f, h and i as well as letter j in the case of the said application being completed with pictures and after the payment of the fee mentioned in Article 22.

2. In case that the descriptions mentioned in Article 24 paragraph (2). H and I is written in the English language, the said descriptions shall be completed with the Indonesia language translation copy, and shall be submitted not later than 30 days starting from the date of receipt as mentioned in paragraph (1).

3. Should the Indonesia language translation copy not be submitted within the period specified in paragraph (2), the said application is deemed as being withdrawn.

Article 31

In case of the incomplete submission as mentioned in article 30 paragraphs (1) and (2), the date of receipt is accepted by the Directorate General.

Article 32

1. If the requirements mentioned in Article 30 have been fulfilled then, but the other provisions in Article 24 have not been fulfilled, the Directorate General shall require the completion not later than 3 months starting from the date of delivery of the said requirement by the Directorate General.

2. The length of time mentioned in paragraph (1), based upon the reasons agreed by the Directorate General, can be extended up to 2 months upon request of the applicant.

3. The length of time as specified in paragraph (2) can be extended up to 1 month after expiry of the said length of time provided that a fee shall be paid by the applicant.

Article 33

Should all the requirements required within the length of time specified in Article 32 have not been fulfilled, the Directorate General shall inform the applicant in writing that the application is deemed being withdrawn.

Article 34

1. In the event that more than one application are submitted by different applicants for one invention, the first-submitted application is accepted.

2. Should several applications for invention as mentioned in paragraph (1) be submitted on the same date, the Directorate General shall inform the applicant in writing to discuss this matter in order to resolve which application is submitted and submit the results to the Directorate General not later than 6 months commencing from date of delivery of the information.

3. Should an agreement of resolution between the applicants not be reached, a negotiation not possibly be conducted, or results of the negotiation not be submitted to the Directorate General within the length of time specified in paragraph (2), the application shall be rejected; and the Directorate General shall inform of the rejection in writing to the applicants.

Part Five

Amendment to Application Article 35

The application can be amended by changing the descriptions and/or claims provided that the said amendment does not extend the scope of invention, which has been submitted in the first application.

Article 36

1. Should an application comprises several inventions, which are not an integral unit of mentioned in Article 21, the applicant can request for the division of the said application.

2. The said request for the division specified in paragraph (1) can be submitted separately in one more applications if the scope of protection requested in each of the application does not extend the scope of protection, which has been submitted in the first application.

3. The said request for division as mentioned in paragraph (1) can be submitted not later than the time before the first application is resolved, as mentioned in Article 55 paragraph (1) or Article 56 paragraph (1).

4. The request for division specified in paragraphs (1) and (2), which have fulfilled the requirements set forth in Articles 21 and 24, shall be deemed submitted on the same date with the first date of receipt.

5. Should the applicant does not submit a request for division within the period specified in paragraph (3), substantive examination on the application shall only be implemented against the invention, which has been stated in the series of the first claims in the first application.

Article 37

The applicant can be changed from patent into simple patent, or vice versa, by the applicant by still focusing on the provisions of this law.

Article 38

Further provisions regarding the amendment specified in Articles 35,36, and 37, shall be regulated in a presidential decree.

CHAPTER Six Withdrawal of Application

Article 39

1. Applications can be withdrawn by the applicants by submitting a request in writing to the Directorate General.

2. Further provisions regarding withdrawal of applications shall be ruled in a presidential decree. Part Seven

Prohibition from Submitting Application and Obligation to Keep Confidentiality

Article 40

Officers of the Directorate General or individuals, who, due to their duties, are working for or on behalf of the Directorate General, during their active service one year after pension or resignation for whatever reasons, shall be prohibited to submit an application, to obtain patent, or, in whatever manner , obtain rights or hold rights with regard to patent, except if the ownership of patent is obtained as a result of inheritance.

Article 41

As of the date of receipt, all officers of the Directorate General or individuals, who, due to their duties concerning the Directorate General, shall maintain confidentiality of the invention and all application documents up to date of announcement of the said application.

CHAPTER IV

ANNOUNCEMENT AND SUBSTANTIVE EXAMINATION Part One

Announcement of Application Article 42

1. The Directorate General shall announce application, which have fulfilled the provisions of article 24. 2. The announcement shall be conducted:

a. Patent : shortly after 18 months commencing from date of receipt or shortly after 18 months commencing from priority date, in case that the application is submitted with priority right.

3. The announcement specified in paragraph (2) a can be done in advance upon request of applicant on a fee based.

Article 43 1. The announcement shall be done by:

a. Placing it in patent official News, issued regularly by the Directorate General, and/or

b. Placing it in special facilities, which are easy to be accessed by the public. The said facilities are provided by the Directorate General.

2. The commencement date of announcement of the application shall be recorded by the Directorate General. Article 44

1. The announcement shall be conducted :

a. Six months starting from the date of announcement of application for patent.

b. Three months starting from the date of announcement of application for imple patent. 2. The announcement shall contain :

a. Inventor’s name and citizenship

b. Name and address of applicant and attorney, in case that the application is submitted through an attorney.

c. Title of invention

d. Date of receipt, in case that the application is submitted with priority right, date of priority, number and the country in which first application is submitted.

e. The abstract

f. Classifications of the invention g. Pictures (if any)

h. Number of announcement and i. Application number

Article 45

1. Whoever can look at the announcement specified in article 44 and can submit a written opinion and/or objection against the said application, complete with the reasons.

2. In case of the opinion and/or objection as mentioned in paragraph (1) the Directorate General shall directly deliver a copy of letter containing the said opinion and/or objection to the applicant.

3. The applicant is submit an answer and clarification against the said opinion and/or objection to the Directorate General.

4. The Directorate General shall use the said opinion and/or objection, answer and/or clarification specified in paragraphs (1) and (3) additional considerations in the substantive examination level.

Article 46

1. After consulting with government institution in charge of the defense and security affairs, the Directorate General if required, with the approval of the minister, can resolve not to announce the application, in case that upon his/her consideration, the said announcement can possibly disturb or violate the interest of defense and security.

2. The resolution not to announce the said application specified in paragraph (1) shall be informed in writing by the Directorate General to the applicant or his/her attorney.

3. The said consultation conducted by the Directorate General, as specified in paragraph (1) includes information of the invention which is applied fore, and ends with a resolution not to construed as violation to the obligation to keep confidentiality as specified in articles 40 and 41.

4. The provisions in paragraph (3) shall still ruler the duty of the said government institution and the apparatus to maintain confidentiality of the said invention and application documents, which are discussed with them and third parties.

Article 47

1. Against applications, which are not announced as mentioned in article 46, the substantive examination shall be conducted after 6 months, starting from the date of resolution of the Directorate General not to announce the said applications.

2. The substantive examination as mentioned paragraph (1) is not subject to charges. Part Two

Substantive Examination Article 48

1. Application for a substantive examination shall be submitted in writing to the Directorate General without any charges

2. Terms and conditions of the said application as mentioned in paragraph(1) shall be further ruled a presidential decree.

Article 49

1. The said application for a substantive examination specified in article 48 paragraph (1) shall be submitted not later than 36 months commencing from date of receipt.

2. Should the said application not submitted within the length of time specified in paragraph (1) or the cost incurred therefor is not paid the said application is deemed withdrawn.

3. The Directorate General shall inform about the application deemed withdrawn as mentioned in paragraph (2) in writing to the applicant or the attorney.

4. Should the said application as mentioned in paragraph (1) be submitted prior to deadline of the announcement specified in article 44 paragraph ( 1) the said examination shall be conducted after the said dead line.

5. Should the said application as mentioned in paragraph (1) be submitted after the deadline of the announcement period set forth in article 4 paragraph (1) the said examination shall be conducted after the date of receipt of the said application.

Article 50

1. The Directorate General, for substantive examination purposes can require the assistance of experts and/or use facilities required from related government institutions or auditors of patent of patent offices in other countries.

2. The assistance of experts, facilities, auditors as specified in paragraph (1) shall be required based upon the provisions of the responsibility of maintaining confidentiality as specified in Article 40 and 41.

Article 51 1. The substantive examination shall be conducted by the auditors.

2. Auditor of the Directorate General shall function as functional officers appointed and dismissed by the minister in accordance with laws in force.

3. Functional hierarchy and allowance, other than other rights, in accordance with laws in force, shall be granted to the auditors specified paragraph (2).

Article 52

1. In case the auditors report that the invention, which is applied for patent, contains other unclear or incomplete information, which is judged as being important, the Directorate General shall inform the said problems in writing to the applicant or the attorney for response or completion.

2. The information specified in paragraph (1) shall be clear, detailed, containing other matters, which are judges as being unclear or incomplete, with reasons and references used in the substantive examination, including the time for completion.

Article 53

If after the information specified in article 52 paragraph (1) the applicant does not respond, or does not fulfil the completion, or does not make corrections against the application within a periods determined by the Directorate General as specified in article 52 paragraph (2), the said application is deemed as being withdrawn, which shall be informed in writing to the applicant.

Part Three

Approval or rejection of application Article 54

The Directorate General is responsible to resolve (agree or reject) the application :

a. Patent : not later than 36 months commencing from the date of receipt of application for substantive examination as mentioned in article 48, or commencing from the deadline of the announcement period, as mentioned in article 44 paragraph (1) in case that the said application is submitted prior to the deadline of the announcement period.

b. Simple patent not later that 24 months from the date of receipt. Article 55

1. Should the substantive examination, which is reported by the auditors conclude that the invention fulfils the provisions of article 2,3 and 5 , and other provisions of this law, the Directorate General shall grant a patent certificate to the applicant or the attorney.

2. Should the substantive examination, be reported by the auditors and the said invention fulfils the provisions of article 2,5 and 6 , and other provisions of this law, the Directorate General shall grant a simple patent certificate to the applicant or the attorney.

3. Patent shall be registered announced, except the one which is related to defense and security.

4. The Directorate General can provide copy of patent documents to the party requiring it by paying some fee, except for patent, which is not announced, as set forth in article 46.

Article 56

1. Should results of the substantive examination reported by the auditors show that the invention applied for patent does not fulfil the provisions of article 2, 3, 5, 6, 35, 52 paragraph 2). or those excepted based upon the provision of article 7, the Directorate General shall reject the application and inform the said rejection in the writing to the applicant or the attorney.

2. The Directorate General can also reject the divided application in case that the division extends the scope of invention, or is submitted over the expiry date set forth in article 36 paragraph (2) or paragraph (3). 3. In case That the said examination conducted by the auditors shows that the invention applied for patent does

not fulfil the provision of article 36 paragraph (2) the Directorate General shall reject the application partly and inform the applicant or the attorney in writing.

4. The information of rejection shall clearly state the reasons and considerations, which are the basis of the said rejection.

Article 57 1. Patent certificate is an evidence of patent right.

2. Latter of rejection shall be recorded by the Directorate General. Article 58

Patent shall be valid as of the date of receipt of patent certificate, retroactively to the date of receipt. Article 59

Further provision regarding the issuance of patent certificate, its form and content, and other provision regarding registration and application for copy of patent documents shall be ruled in a government regulation.

Part Four application for Appeal

Article 60

1. The said application for appeal can be submitted against rejection of application, which is related to reasons and considerations basis regarding substantive matters, as set forth in article 56 paragraph (1) or paragraph (3).

2. The said application shall be submitted in writing by the applicant or the attorney with reasons of rejection of the application as a consequence of substantive examination.

3. The said application shall be submitted by mentioning complete details of the objection and reasons of the said rejection as a consequence of substantive examination.

4. The reasons set forth in paragraph (3) are not construed as new reasons or clarifications, so that it will extend the scope of invention as specified in article 35.

Article 61

1. Application for appeal shall be submitted not later than 3 months commencing from date of delivery of the letter regarding information of rejection.

2. Should the length of time specified in paragraph (1) has elapsed without any application for appeal the rejected is deemed received by the applicant.

3. In case that the said rejection is deemed received as set forth in paragraph (2) the Directorate General shall record and announce it.

Article 62

1. The appeal shall begin to be examined by the appeal committee not later than 1 month commencing from the date of receipt of the application for appeal.

2. Ruling of the said committee shall be issued not later than 9 month commencing from the deadline of the period specified in paragraph (1)

3. In case that the committee receive and agree the said application the Directorate General shall implement the said ruling.

4. In case that the committee rejects the said application, the applicant or the attorney can submit a petition against the ruling to the commercial court within 3 months commencing from the date of receipt of the said rejection.

5. Final appeal can be made against the said ruling specified in paragraph (4) Article 63

Procedures for the application, examination, and settlement of appeal shall be further regulated by a presidential decree.

Part Five Appeal Committee

Article 64

1. Appeal committee is a special independent agency, within the department, which specializes in intellectual property rights.

2. The said committee comprises of a chairman and member a vice chairman and member, consisting of some experts in the fields required and senior auditors.

3. Member of the said committee specified in paragraph (1) shall be appointed and dismissed by the minister for a 3 year period.

4. The Chairman and vice chairman shall be chosen from and by members of the said committee.

5. For examining application for appeal the said committee shall from a council consisting of odd number of members at least 3 persons, one of which is a senior auditor who does not conduct substantive examination against the application.

Article 65

Organization structure, duties and functions of the appeal committee shall be further regulated in a government regulation.

CHAPTER V

TRANFEER AND LICENSING OF PATENT Part One

Transfer Article 66 1. Patent can shift or be transferred partly or wholly due to:

a. Inheritance b. Grant c. Testament

d. Written agreements or

e. Other reasons consistent with the laws

2. The transfer specified in paragraph (1) a, b, and c, shall be completed with original documents of patent and other rights in relation to patent.

3. All kinds of transfer of patent as mentioned in paragraph (1) shall be recorded and announced on a fee-based.

4. The transfer which is not in compliance with the provisions of this article is null and void.

5. Requirements and procedures for the registration of the said transfer shall be further regulated by presidential decree.

Article 67

1. Except in inheritance the right as former owner as mentioned in article 13 cannot be transferred. 2. The transfer specified in paragraph (1) shall be recorded and announced on a fee based.

Article 68

The said transfer shall not nullify inventor’s right to register his/her name and identity in the patent. Part Two

License Article 69

1. holders of patent shall have the right to grant license to other parties based upon a license agreement to implement the action set forth in article 16.

2. Except if agreed otherwise the scope of license set forth in paragraph (1) comprises of all actions specified in article 16, which are going on during the validity of the said license throughout Indonesia.

Article 70

Except if agreed otherwise holders of patent shall be allowed to self implement or grant the license to third parties to implement the action specified in article 16

Article 71

1. A license agreement shall not contain provision either directly or indirectly which can encumber the Indonesia economy, or contain limitations encumbering the ability of the Indonesia people in mastering and developing technology in general, and which are related to the invention which is granted patent in particular.

2. Application for registration of the said license agreement containing the provisions set forth in paragraph (1) shall be rejected by the Directorate General.

Article 72

1. A license agreement shall be registered and announced on a fee based.

2. In the event that the license agreement were not registered at the Directorate General as set forth in paragraph (1) the license agreement shall not process legal effects against third parties.

Article 73

Further provisions regarding license agreement shall be regulated by a government regulation. Part Three

Compulsory License Article 74

Compulsory license is a license for implementing patent, which is granted based upon the decision of the Directorate General upon request.

Article 75

1. Anybody can submit an application for compulsory license to the Directorate General for implementing the patent after the elapse of a period of 36 months commencing from date of grant of patent This is subject to some fee.

2. The said application set forth in paragraph (1) can only be implemented on the ground that the said patent cannot be implemented or implemented partly in Indonesia by holders of patent.

3. The said application can also be submitted after the patent is obtained on the ground that the said patent has been implemented by the holders or the licensees in the form and in the manners encumbering the interests of the public.

Article 76

1. Apart from the reason specified in article 75 paragraph(2) a compulsory license can be granted in case : a. The applicant is able to show confirming the evidence that he/she.

1. Possesses the ability to self implement the patent as a whole.

2. Own some facilities for implementing the said patent soonest possible.

3. Has taken steps in an enough length of time in order to obtain license from patent holder on the basis of reasonable requirements and conditions but does not achieve any results

b. The Directorate General is in the opinion that the said patent can be implemented in Indonesia in a reasonable scale of economy and can provide some benefit to the major part of the society

2. Examination against the application for compulsory license shall be conducted by the Directorate General by taking into account the opinion of related institution and parties and holders of the said patent.

3. A compulsory license shall be granted for a period not later than the length of time for protection of patent Article 77

In the event that based on evidence and opinion as mentioned in article 76 the Directorate General is confident that the length of time specified in Article 75 paragraph (1) is not enough for holders of patent to commercially implement paten in Indonesia or within the scope of region specified in article 17 paragraph (2) the Directorate General can postpone the decision of grating compulsory license for a temporary period or can reject it.

Article 78

1. The implementation of compulsory license and royalty payment by the party obtaining the said license to holders of patent.

2. The amount of royalty payable and the manner of payment shall be determined by the Directorate General 3. Decision regarding the royalty amount shall be implemented by paying attention to the usual procedures

applied in a patent license agreement or other agreements of the like. Article 79

Resolution, regarding the grant of compulsory license, contains the following : a. Non-exclusive compulsory license;

b. The reasons for granting compulsory license;

c. Evidence, including information or clarification, which are affirmed to become bases for granting compulsory license;

d. Validity of compulsory license;

e. The amount of patent; and the manner of payment;

f. Terms and conditions for termination of compulsory license, and the matters that can nullify it; g. Main compulsory license, which is used for fulfilling requirements of the local market;

h. Other matters required for maintaining the interests of the parties justly. Article 80

1. The Directorate General shall register and announce the granting of compulsory license. 2. The implementation of compulsory license shall be deemed as the implementation of patent.

Article 81

The resolution regarding the grant of compulsory license shall be issued by the Directorate General not later than 90 days commencing from submission of application for the said license.

Article 82

1. A compulsory license can, at certain times, be requested to holders of patent on the basis that the patent can be impossible to be implemented without violating other existing patent.

2. The application for compulsory license as set forth in paragraph (1) can only be considered if the patent that will be implemented truly contains renewal element, which is truly progressive other than the existing one.

3. In the event that compulsory license is submitted on the basis specified in paragraphs (1) and (2):

a. Holders of patent shall have the rights to grant license one another for using the other parties' patent based on reasonable conditions;

b. The use of patent by the licensees can not be assigned, except if it were assigned simultaneously with other patents.

4. Submission of application for compulsory license to the Directorate General, as specified in paragraphs (1) and (2), shall be consistent with the provisions regarding the period for submission of application for compulsory license, as ruled in Article 75 paragraph (1).

Article 83

1. Upon request of holders of patent, the Directorate General can cancel the resolution regarding issuance of compulsory license. Specified in Chapter V, Part Three of this law, in case:

a. Reasons, which are used as basis for issuing compulsory license, are no more in existence;

b. The compulsory licensees are found not to implement the said license or do not conduct proper preparatory efforts for implementing it;

c. Compulsory licensees do not have to obey the other terms and conditions, including paying royalty, which is determined in the issuance of compulsory license.

2. The cancellation, as mentioned in paragraph (1), shall be registered and announced. Article 84

1. In the event that a compulsory license expires or is cancelled, the compulsory licensees shall return the said license.

2. The Directorate General shall register and announce the terminated compulsory license. Article 85

Termination of the said compulsory license as set forth in article 84, results in the revival of the rights of holders of patent commencing from date of registration.

Article 86

1. Compulsory license can not be assigned, except in the event of inheritance.

2. Compulsory license assigned due to inheritance shall still be related to the requirements at the time issuance and other provisions, especially regarding length of time, and shall be reported to the Directorate General for registration and announcement.

Further provisions regarding compulsory license shall be ruled by a government regulation. CHAPTER VI

CANCELLATION OF PATENT Part One

Null and Void Article 88

A patent is declared null and void if the holders do not fulfil payment of annual fee within a length of time required by this law.

Article 89

1. Patent, which is null and void, shall be informed in writing by the Directorate General to the holder and the licensee, and shall commence to be valid as of the date of the said information.

2. Patent, which is declared as void under the reasons specified in Article 88, shall be registered and announced.

Part Two

Nullification Upon Request of Patent Holders Article 90

1. Patent can be cancelled partly or as a whole by the Directorate General upon the request of holders of patent, which request is submitted in writing to the Directorate General.

2. Cancellation of patent as mentioned in paragraph (1) can not be implemented in case that licensees do not grant a written approval enclosed to the application for cancellation.

3. Resolution regarding cancellation of patent shall be informed in writing by the Directorate to the licensees.

4. The said resolution due to the reasons specified in paragraph (1), shall be registered and announced.

5. Cancellation of patent shall be valid commencing from date issuance of the resolution regarding the said cancellation by the Directorate General.

Part Three

Nullification Due to Lawsuit Article 91

1. A lawsuit for cancellation of patent shall be filed in the event:

a. The said patent, which pursuant to the provisions of Articles 2, 6, and 7, shall not be granted.

b. The said patent is similar to another, which has been granted to another party for invention of the like, based upon this law.

c. The issuance of compulsory license, in fact, does not able to prevent the continuity of the implementation of patent, in the form and in the manners encumbering the public, within 2 years commencing from date of issuance of the first compulsory license, in the case of several compulsory licenses.

2. The lawsuit for cancellation due to the reasons specified in paragraph (1). A shall be submitted by third party to holders of patent, through the Court of Commerce.

3. The Said lawsuit due to the reasons specified in paragraph (1).b, can be submitted by holders of patent or licensees to the Court of Commerce, so that another patent of the like, is cancelled.

4. The said lawsuit set forth in paragraph (1) .c can be submitted by public prosecutors to holders of patent or licensees to the commercial court.

Article 92

Should the lawsuit for the cancellation of patent set forth in Article 91 be of one more cla ims or part of claims, the cancellation shall be implemented only to the one, which cancellation is claimed.

Article 93

1. The content commercial court's judgment regarding the cancellation of patent, shall be delivered to the Directorate General, not later than 14 days commercial from reading of the judgment.

2. The Directorate General shall register and announce the said judgment specified in paragraph (1). Part Four

Consequences of Cancellation of Patent Article 95

The cancellation of a patent nullifies all legal consequences, which are related to patent and other maters coming from the said patent.

Article 96

Unless otherwise agreed patent in the commercial court's judgment, a patent shall be null and void partly or wholly starting form the date of final judgment.

Article 97

1. Licensees of a cancelled patent due the reasons specified in article 91 paragraph (1).b shall still have the right to implement the licensees owned by them up to expiry of the length of time determined in the license agreement.

2. The said licensees specified in paragraph (1), shall not be liable to continue payment of the royalty, which should still have to be paid, to holders of patent, whose patent is cancelled; but shall assign the royalty payment for the remaining validity of the said license owned to eligible patent holders.

3. In the event that holders of patent do not receive the royalty in one lump sum payment from the licensees, the patent holders shall return the royalty amount consistent with the remaining validity of the license to the eligible holders of patent.

Article 98

1. License of a patent, which is declared null and void, due to the reasons set forth in Article 91 paragraph (1).b, which is obtained in good faith prior the submission of a petition regarding cancellation of the patent, shall still be applicable for other patents.

2. The license specified in paragraph (1) shall still be valid under the condition that the licensee shall still be liable to pay royalty to holders of patent, which is not cancelled, in the same amount as the agreed amount, to holders of patent, which patent is cancelled.

CHAPTER VII

IMPLEMENTATION OF PATENT BY THE GOVERNMENT Article 99

1. In the event that the government is in the opinion that a patent, in Indonesia, has an important meaning to defense and security, and strict requirement for the interests of the public, the government can self-implement the said patent.

2. The decision for self-implementing a patent, shall be ruled by a presidential decree, after the President considers the considerations made by the Minister, and ministers or heads of institutions responsible in related fields.

Article 100

1. The provisions of article 99 shall also be applicable for inventions, which are applied for patent, but are not announced in the manner set forth in article 46.

2. Should the government not or have had no intention to self-implement the patent, as specified in paragraph (1), patent of the like can only be implemented upon government's approval.

3. Holders of patent, as specified in paragraph (2), shall be exempted from the liability to pay annual fee up to implementation of the said patent.

Article 101

1. In case the government intends to implement a patent, which has important meaning to defense and security, and for strict requirements of the interests of the public, the government shall inform in writing on the said matter to patent holders, regarding:

a. The relevant patent shall contain name of the holder and the number; b. The reasons;

c. Implementation period.

d. Other matters deemed important.

2. The implementation of patent by the government shall be by giving reasonable compensation to the holders Article 102

Procedures of implementation of patent by the government shall be ruled by a government regulation. CHAPTER VIII

SIMPLE PATENT Article 103

All provisions ruled under this law shall also be applicable to simple patent, except if it is confirmed not to have any relations with a simple patent.

Article 104 1. Simple patent shall only be granted to one invention .

2. Application for substantive examination against simple patent can be conducted simultaneous with the submission of application, or not later than 6 months commencing from date of receipt. This is subject to some fee.

3. Should the application for substantive examination is not implemented within the length of time specified in paragraph (2), or the fee for that purpose is not paid, the application is deemed withdrawn.

4. A substantive examination against application for simple patent, shall be conducted after the termination of the announcement period, as mentioned in Article 44 paragraph (1).b.

5. The Directorate General, in conducting substantive examination, shall only examination the renewal specified in Article 3, and its industrial applicability, specified in Article 5.

Article 105

1. Simple patent shall be granted, registered, and announced by the Directorate General. 2. Holders of simple patent shall be granted certificates of simple patents.

Article 106 Simple patent can not be requested for compulsory license.

Article 107

Further provision regarding simple patent shall be ruled by a government regulation. CAPTER IX

APPLICATION THROUGH PATENT COOPERATION TREATY Article 108

1. Application can be submitted to the Patent Cooperation Treaty.

2. Further provisions regarding the application specified in paragraph (1) shall be ruled by a government regulation.

CHAPTER X

ADMINISTRATION OF PATENT Article 109

Administration of patent, as set forth in this law, shall be implemented by Directorate General, by paying attention to the authorities of other institutions, specified in this law.

Article 110

The Directorate General shall organize patent documentation and information by forming national documentation system and information network, so that it will be able to provide possibly widespread information regarding technology, which is granted patent, to the public.

Article 111

The Directorate General, in implementing patent, shall obtain development from, and shall report to the Minister.

CHAPTER XI EXPENSES

Article 112

1. All expense payable under this law, shall be determined by a government regulation.

2. Further provisions regarding requirements, length of time, and procedures of payment of expenses, as specified in paragraph (1), shall be ruled by a presidential decree.

3. The Director General, upon approval of the Minister and the Minister of Finance, can utilize the income, which is coming from the expenses as mentioned in paragraph (1), based upon laws in force.

Article 113

1. Annual fee shall, for the first time, paid not later than 1 year commencing from date of issuance of patent. 2. During validity of the said patent, payment for the coming years, shall be made not later than the date

similar to the one upon issuance of patent or registration of the license.

3. Payment of the annual fee as specified in paragraph (1), shall be calculated from the first date of application. Article 115

1. If, holders of patent, in 3 consecutive years, do not pay annual fee as required in Article 18 and Article 114, the patent shall be declared as null and void commencing from the date of expiry of the period for payment for the third year.

2. Should the liability for payment of the annual fee is related to the liability for the said payment for the 18th year and the following years not be fulfilled, the patent is deemed null and void at the of expiry of period for payment of the annual fee for current year.

3. A patent, null and void, due to the reasons specified in paragraphs (1) and (2), shall be registered and announced.

Article 116

1. Except for the provisions of Article 114 paragraph (3) and Article 115 paragraph (2), overdue payment of the annual fee commencing from the date determined in this law, shall be subject to an additional fee of 2.5% monthly of the annual fee for the year which payment is overdue.

1. Overdue payment of the annual fee as mentioned in paragraph (1) shall be informed in writing by the Directorate General to the patent holder not later than 7 days after the period determined has elapsed.

2. Non-receipt of the information as specified in paragraph (2) by the relevant party, shall not reduce the validity of the provisions of paragraph (1).

CHAPTER XII

SETTLEMENT OF DISPUTES Article 117

1. Should A patent be grated to parties other than those entitled, based upon Articles 10, 11, and 12, the parties having the right to the said patent, can file a lawsuit to the commercial court.

2. The right to file a lawsuit as mentioned in paragraph (1), shall be applicable retroactively commencing from date of receipt.

3. Information regarding the content of the judgment regarding the lawsuit, as mentioned in paragraph (1), shall be delivered to the parties by the commercial court not later than 14 days commencing from date of reading of the said judgment.

4. The content of the said judgment, as mentioned in paragraph (3), shall be registered and announced by the Direcorate General.

Article 118

1. Holders of patent or licensees shall have the right to file a petition for compensation to the commercial court against any party who, intentionally and without the right to conduct thr action specified in Article 16. 2. Petition for compensation, which is filed against the action mentioned in paragraph (1), shall only be

accepted in case the products or processes are proven as using the invention, which has obtained patent. 3. Content of commercial court’s judgment regarding the lawsuit, as specified in paragraph (1), shall be

delivered to the Directorate General not later than 14 days commencing from date of reading of the said judgment for registration and announcement purposes.

Article 119

1.In the event that examination of patent, the duty to prove that a product is not produced using process patent, as specified in Article 16 paragraph (1).b, shall be implemented in case:

a. The product is new;

b. The said products is deemed as the result of process patent and, even if sufficient steps to proof it have been conducted, holder of the patent are still not able to determine which process will be used to produce the product.

2. For examination purposes, against the lawsuit specified in paragraph (1), the court is authorized to:

a. Order holders of patent to deliver, in advance, copies of patent certificates, for the said process and beginning evidence, which has become the basis of the lawsuit; and

b. Order the defendant to prove that the product yielded, does not use the process patent.

3. In the examination set forth in paragraphs (1) and (2), the court shall consider the interests of the defendant to obtain protection against the secret of the process that has been detailed for evidence purposes in court.

Article 120

1. The lawsuit shall be registered at the commercial court by paying expense.

2. Within 14 days after registration of lawsuit, the commercial court shall determine date of hearing.

3. Examination hearing shall commence on a date not later than 60 days as of date of registration of the said lawsuit.

Article 121

1. Summons of the parties by the bailiff be conducted not later than 14 days prior to first examination hearing. 2. Judgment regarding the lawsuit shall be read not later than 180 days after date of registration of the lawsuit. 3. Judgment of the lawsuit as mentioned in paragraph (20, which contains comprehensive legal

considerations, as basis for the judgment, shall be read in a hearing open to the public.

4. The commercial court shall deliver of the judgment to the parties, who are not present, not later than 14 days commencing from date of reading of the judgment in a hearin, which is open to the public.

Article 122

A final appeal can be filed against judgment of the commercial court as mentioned in Article 121 paragraph (3). Article 123

1. The application for final appeal, as specified in Article 122, shall be submitted not later than 14 days from date of reading or receipt of court judgment (which is applied for a final appeal) by registration wich the court that has judged the lawsuit.

2. The registrar shall record the final appeal on the date on which the application is submitted, and the applicant shall be granted with a written receipt signed by the registrar on the date similar with date of receipt of the said registration.

3. Final appeal applicant shall deliver the memorandum, of final appeal to the registrar not later than 7 days commencing from date of registration of registration of the final appeal application, as mentioned in paragraph (1) and (2).

4. The registrar shall inform the final appeal application and the memorandum of final appeal, as mentioned in paragraph (3), to the respondent not later than 2 days after receipt of the said memorandum by the registrar. 5. The respondent can submit a counter memorandum of final appeal to the registrar not later than 7 days after

date of receipt of the said memorandum as mentioned in paragraph (4) by the respondent not later 2 days after receipt of the said counter memorandum.

6. The registrar shall deliver the final appeal documents to the Supreme Court not later than 7 days after the period specified in paragraph (5) has elapsed.

7. The Supreme Court shall study the final appeal documents, and shall determine hearing date not later than 2 days commencing from receipt of the final appeal application by the Supreme Court.

8. The hearing for examining final appeal documents shall begin on the date within a period of 60 days after date of receipt of the said documents by the the Supreme Court.

9. Supreme Court’s judgment shall be read not later than 180 days after date of receipt of the said documents by the Supreme Court.

10.The said judgment specified in paragraph (9), containing comprehensive legal considerations, which base the said judgment, shall be read in an open hearing.

11.Supreme Court’s Registrar shall deliver content of the said judgment to the commercial court’s registrar nor later than 3 days after date of reading of the said judgment.

12.The bailiff shall deliver content of the judgment as mentioned in paragraph (11) to the applicant and the respondent not later than 2 days commencing from receipt of the said judgment.

13.Content of the judgment as mentioned in paragraph (11) shall also be delivered to the Directorate General not later than 2 days commencing from date of receipt of the said judgment by the commercial court for registration and announcement purposes.

Article 124

Apart from the settlement of disputes specified in Article 117, the parties can settle the said disputes through Arbitration or Alternative Disputers Settlement.

CHAPTER XII

TEMPORARY COURT’S RULING Article 125

The commercial court, upon regust of the party suffering from loss as a result of implementation of patent, can issue a direct and effective for:

a. Preventing continuous patent violations and the rights related thereto, particularly preventing the introduction of goods, which are deemed violating patent and the rights related thereto into trading line, including import.

b. Keeping the evidences related to violations against patent and the rights related thereto, for preventing loss of the goods used as evidence.

c. Requiring the parties who suffer from losses to provide evidence certifying that the said parties are entitied to the patent and the rights related thereto, and violations against the rights of the applicant.

Article 126

In case that the temporary ruling has been implemented, the said parties shall be informade on this matter; including the rights to be heard for the parties subject to the said temporary judgment.

Article 127

Should the commercial court issue temporary judgment, the commercial court shall decide whether to amend, cancel, or strengthen the judgment specified in Article 125 not later than 30 days commencing from date of issuance of the said judgment.

Should the temporary judgment be cancelled, the parties suffering from losses, can claim compensation to the party requesting for the said temporary judgment regarding all losses incurred as a consequence of the said temporary judgment.

CHAPTER XIV INVESTIGATION

Article 129

1. Other than the Indonesian Police Forces, certain civil employees at departmens, the scope of duties and responsibilities of whom, include intellectual property rights field, shall be granted special authorizations as investigators, as mentioned in law No. 8/1981 regarding Criminal Proceeding Law, to conduct investigation into criminal acts in patent.

2. Civil employees as investigators, to mentioned in paragraph (1), are authorized: a. To examine the truth of the complaint regarding criminal acts in patent;

b. To examine the individuals entities, which are assumed as corducting criminal acts in patent based on the complaints specified in paragraph a.

c. To inquire for information and goods as evidence from the parties related to criminal acts in patent; d. To examine book, records, and other documents related to criminal acts in patent;

e. To examine certain places, which are assumed as storing evidences, book, records, and other documents, and to seize the materials goods as a result of violations, which can be used as evidence for criminal acts in patent; and

f. To require the assistance of exprets in the said investigation.

3. Civil employees as investigators, as mentioned in paragraph (1), shall inform the commencement of investigation and the results to the police as investigators.

4. The civil employee investigators as mentioned in paragraph (1) shall deliver results of the investigation to Public procecutors through police investigators in commpliance with Article 107 of Law No. 8/1981 regarding Criminal Proceedings Law.

CHAPTER XV CRIMINAL PROVISIONS

Article 130

Whoever, intentionally and without any rights to do so, violate the rights of holders of patent by conducting one of the actions specified in Article 16, shall be subject to a maximum 4-year-imprisonment and/or a penalty in an amount not exceeding Rp. 500 million.

Article 131

Whoever, intentionally and without any rights to do so, violate the rights of holders of simple patent by conducting one of the actions specified in Article 16, shall be subject a maximum 2-year-imprisonment/or a penalty in an amount not exceeding Rp. 250 million.

Article 132

Whoever, unintentionally, does not fulfil the liability mentioned in Article 25 paragraph (3), Article 40 and 41, shall be subject to a maximum 2 year-imprisonment.

The criminal acts, specifiedd in Article 130, 131, and 132 shall be construed as indictment. Article 134

The panel of justices, in the event of a proven violations of patent, can oder that the goods resulted from the said violations be seized for destruction.

Article 135

The following conducts are excepted from the criminal provisions specified in this chapter:

a. Importing of pharmaceutical products, which are protected by patent in Indonesia, and the said products have been introduced into a country by legal holders of patent under condition that the said products are imported in accordance with laws in force;

b. Producing pharmaceutical products, which are protected by patent in Indonesia within 2 year prior to expiry of the said protection, for license purposes. A marking will be counducted after expiry of the said protection.

CHAPTER XVI

TRANSITIONAL PROVISIONS Article 136

This law supersedes all existing laws regarding patent. This law shall still be in full force as long as il is not in violation or has not been amended by a new law, as specified hereuder.

Article 137

All applications submitted prior to the effective date of this law, shall still be subject to law No. 6/1989 regarding Patent, which has been amended by Law No. 13/1997 regarding Amendment to Law No. 6/1989 regarding Patent.

CHAPTER XVII CLOSING PROVISIONS

Article 138

This law supersedes Law No. 6/1989 regarding Patent (Statute Book of 1989 No. 39, Suppleme nt to Statute Book No. 3398) and Law No. 13/1997 regarding Amendment to Law No. 6/1989 regarding Patent (Statute Book of 1997 No. 30, Supplement to Statute Book No. 3680).

Article 139 This law comes into full force as of date promulgation.

For public cognisance, I order promulgation of this law by placing it in the State Gazette of Republic of Indonesia.

Issued in Jakarta

On the 1st day of August, 2001

Signed

MEGAWATI SOEKARNOPUTRI

Promulgated in Jakarta On the 1st day of August, 2001

THE STATE SECRETARY OF THE REPUBLIC OF INDONESIA Signed

MUHAMMAD M. BASYUMI

CLARIFICATION OF

LAW NO 14/2001 REGARDING

PATENT

I. GENERAL

Technological development brings a considerable impact on the daily life, and in past decades, the development has been rapid. The said development is also occurring in the field of mechanics, physics, or other fields apart from high – technology fields, such as computer, engineering, telecommunication and biotechnology. Moreover at the same time, social awareness to improve simple technological applicability has been high.

For Indonesia , as a country with abundant natural resources, the important role of technology is undisputable. But , the said technological development has not reached the target. This has been contained clearly in the people’s consultative assembly’s stipulation No IV /MPR/1999 regarding Board Outlines of the Nation’s Direction, which is amongst other, contained in Chapter II, specifying that technological development has not been well utilized in economic , social, and cultural activities ; therefore it has not strengthened Indonesia’s capability in facing global competition . In order to boost technological development in the form of protection against intellectual creation, including patent.

In relation to this matter, even though Indonesia has had a patent law, i.e. Law No 6/1989 regarding Patent (Statue Book of 1989 No 39) jo Law No 13/1997 (Statue Book of 1997 No 30) (hereinafter referred to as the old Patent law), and the implementation of patent has been going on, it is deemed necessary to amend the old patent law. Apart from that, in the Agreement on Trade –Related Aspect of Intellectual Property Rights (hereinafter referred to as TRIP’s Agreement) contains several aspects, which have not been accommodated in the said patent law. We know, that Indonesia has ratified the agreement Establishing the world trade Organization, which hereinafter is referred to as World Trade Organization in law no 7/1994 regarding the ratification of the said Agreement Establishing the World Trade Organization (Statue Book of 1994 no 57) and the Agreement on TRIP’s is one of the attachments to this agreement.

Considering the scope of amendment and in order facilitate the public to use it, the said patent law has been arranged comprehensively in a single text, replacing the old patent law. In this matter, provisions of the old patent law whose substances are not amended, shall be contained in this law. In general, the amendment to the old patent law consists of perfection, addition and deletion. Some of the main amendments in this law , compared to the old patent law are :

1. Perfection a. Terminology

i. The term “ Inventor” shall be used for Invention, and the term “ penemuan ( finding )” shall be changed into invensi (invention) with the reason that the term “invensi” is derived from invention, which is specifically used in relation to patent. In other meaning , the term Invention is more accurate compared to “penemuan” because the term “penemuan” has various meanings . The term “penemuan” consists of, for example : finding scattered goods, while the term invention in relation to patent, is the result of a series of activities, so that some thing new , or something that has not been in existence before (of course, this is connected to relations of human beings, with the awareness that all of these are created by

God ). In the English language, there are words amongst others, as to discover, to find and to get. These words are sharply different in meaning from to invent in relation to patent .

The term invention has been contained in the Great Dictionary of the Indonesia Language, published by Balai Pustaka , The department of Education and culture , second edition of 1999, 386 pages . Practically, Indonesia terms, which are construed as conversion from foreign languages, which have had their correspondence in the Indonesia language such as Invensi which has been frequently found in the word “ eksklusif (derived from exclusive ) Investasi (Investment, reformasi (reform or reformation) or riset (research ) which have been generally or officially used. Moreover , some of these words constitute parts of names of government institution such as the office of the state minister for Investment or office of the state minister for research and technology. At the same time the word “ penemu” has become Inventor .

ii. Invention does not methods for implementing activities : (1) Aesthetic. Creation;

(2) Scheme;

(3) Rules and methods for implementing activities a. Involving mental activities

b. Games c. Business;

(4) Rules and methods regarding computer program; (5) Presentation regarding information on something.

iii. The name Patent Office which is stated in the old patent law is changes into the Directorate General . Change of this term is for the purpose of confirming and clarifying institution of intellectual property rights as an integral system.

b. Simple patent

In this law the object of simple patent does not comprise of the process use composition and product which are construed as “ product by process, The object of simple patent shall be limited only to tangible matters instead of intangible ones . In some countries, such as Japan the united State , the Philippines and Thailand the meaning of simple Patent is called utility model , petty patent or simple patent, which are specifically referred to an article or a device. Different from the old patent law ,in this law , protection of simple patent was , formerly , not announced prior to substantive examination , is now being announced . The application for simple patent shall be announced not later than 3 months as of date of receipt . This matter is for the purpose of creating opportunities to the public for learning about the application for an invention and for expressing their opinion with regard to the said matter. Apart from that, due to the said announcement the application documents , which have been announced , may directly be used as comparison documents , if required in a substantive examination without the liability to violate the confidentially of an invention. Other than that , the concept of protection for simple patent , which is changed into as of date of receipt, is for creating an opportunities of holders of simple patent to file compensation due to the violations commencing from date of receipt . The claim for compensation may be filed after issuance of simple patent. New characteristic of simple patent pursuant to the new patent law, is not clear , This law confirm a universal renewal . The provision of the old patent law , also creates a possibility of falsification of foreign inventions , which are applied for simple patent . The period of substantive examination on simple patent which is formerly similar to patent , shall be changed from 36 months to 24 months commencing from the month of the date of receipt. This is for shortening the period of substantive examination so that it will go hand in hand with the concept of patent in order to improve public service.

What is meant by other agreements of the like are agreements, which are normally made in the framework of transfer of ability and transfer of knowledge regarding unpatented technology (know how and technology transfer).

Article 79 up to 81 Sufficiently clear Article 82

Paragraph (1)

This condition usually occurs in the implementation of patent, which is construed as a result of perfection or development of the previous invention that has been protected by patent. As a result of that, the implementation of new patent means implementation of part or the whole invention that has been protected by patent which is owned by other parties.

If holder of previous patent grant license to next holders, which enable the implementation of the next patent; in this matter there will be no violations problem.

But, if the license for that purpose is not granted, this law should provide a way out. As a result of this, in order to implement the next patent, it shall be conducted in compliance with the previous patent. This may only be conducted in compliance with the previous patent. This may only be conducted in case that the compulsory license is granted by the Directorate General. For example :

Patent A consists of four claims, which the whole is construed as one unit. Patent B, obtained after patent A, basically contains three claims, which, in principal, is construed as perfection and development of the three out of the four claims of patent A.

As a result of the perfection and development, Patent B, of course, has a technological basis that exists in Patent A.

If holder of Patent B intends to implement his/her patent, this will be difficult without violating one of the claims in Patent A.

If holder of Patent A grant license to holder of patent B to implement a claim owned by him/her, it will not be problematic. But if holder of patent A is not willing to grant license, the only way out for holder of Patent B is to request a compulsory license to the Directorate General.

Paragraph (2) up to (4) Sufficiently clear Article 83 to 90

Sufficiently clear Article 91

Paragraph (1) a and b Sufficiently clear Paragraph (1).c

What is meant by in fact, does not able to prevent the continuity of the implementation of patent, in the form and in the manners encumbering the public is, although a compulsory license has been granted, the issuance of the said license shall not be followed by the implementation so that the product, which are very much required by the public, are not fulfilled and the intention of the issuance of the said compulsory license to produce medicines cannot be effectively implemented so that total production is still low and the price medicine is still high.

Paragraph (2) up to (4) Sufficiently clear

Article 92

Sufficiently clear Article 93

Paragraph (1)

What is meant by commercial court is a final and binding verdict. Paragraph (2)

Sufficiently clear Article 94 to 97

Sufficiently clear Article 98

Paragraph (1)

Licensee of patent, which is canceled basically may continue to implement the rights obtained. The said license shall become license of another patent, which not canceled.

Paragraph (2)

Sufficiently clear Article 99

Paragraph (1)

Due to defense and security of the state, the urgent need for national interest is a basic one, so that it is normal if the government or third party is granted a license to implement the related patent by the government.

This rule is also possible in accordance with the provisions of article 31 of TRIPs agreements . Invention related to state defense and security are, amongst others, explosives, gun fires, and ammunitions.

What is meant by strict requirement for the interests of the public is, for example, amongst other, in the field of health, such as medicines , which are still protected by patent in Indonesia and required for preventing endemic, in the agrarian field, such as pesticide, which is required for preventing the failure of harvests due to pests. As we know that one of the functions of patent is go society’s welfare in the relevant country.

Paragraph (2)

Sufficiently clear Article 100 to 104

Sufficiently clear Article 105

Paragraph (1)

What is meant by one invention is an invention in the form of tangible product or equipment. The foregoing may comprise of several claims.

Paragraph (2) up to (4) Sufficiently clear Paragraph (5)

What is meant by renewal is not only difference in technical specification, but shall also have a more practical function/use than the previous invention.

Sufficiently clear Article 109

Paragraph (1)

This provision is intended to provide easy and quick process for an applicant in Indonesia in submitting their patent applications to several other countries (which are also members of the Patent Cooperation Treaty (PCT), and the applicants of other countries, which are also members of PCT, may easily and quickly submit applications to Indonesia.

Paragraph (2)

Matters that will be contained in the Government Regulation are, amongst others, consist of : a. additional administrative requirements that must be fulfilled by the applicants , such as : the

use of foreign languages that may be allowed, choosing of patent office, which will be organizing the duty as international search authority and international preliminary examination authority) by the applicants, and so forth.

b. The responsibility of the Directorate General as a receiving office or designated office of system, and so forth.

Article 111

As one of technological information, patent is construed as a facility for improving the knowledge and capability of the nation in the field of technology. Hence, patent documentation and information has a very important, even strategic meaning and role . for arrangement of documentation system, especially information network system, which is related and sturdy. In that framework , the Directorate General can utilize the capability and facilities possessed by other institution, either government owned or private ones, under good cooperation in creating the said system. Other than that, the existence of good and sturdy documentation and information system shall also be useful for the acceleration of the implementation of duties of the Directorate General, especially in examining patent. The Directorate General may take the opportunity of technical assistance and cooperation with foreign countries in the construction and development of the said documentation and information system.

Article 112 and 113 Sufficiently clear Article 114

Paragraph (1), (2) and (3)

What is meant by annual fee shall, for the first time is annual fee before issuance of patent. For calculation purpose, the first application year shall commence on the date of receipt Sample of calculation of the said annual fee that need to be paid is as follows :

- The application submitted on April 1, 1997 shall be declared for patent on January 5, 2000. - The responsibility of patent holder to pay the first annual fee as mentioned in paragraph (1) is

not later than January 4, 2001

- The amount that has to be paid for the first time, which is especially intended for paying the annual fee previous to the issuance of patent, is as follows :

---Y e a r P e r i o d Fee (in Rupiah)

---I (April 1, 1997 to March 30, 1998) A

II (April 1, 1998 to March 30, 1999) B

III (April 1, 1999 to March 30, 2000) C

---For the first 3 (three) years (since April 1, 1997 until May 30, 2000) is A+B+C. Payment of the next annual fee is as follows :

Annual fee IV (April 1, 2000 - March 30, 2001) is D, which can be paid not later than January 5, 2002; and annual fee V (April 1, 2001-March 30, 2002) is E, which can be paid not later than January 5, 2003, and so forth.

Article 115 Paragraph (1)

The 3 (three)-year-period is based upon the consideration to give sufficient opportunity to holders of patent to consider the continuity of his/her patent. Cancellation of patent due to non-payment of the annual fee shall be informed in writing by the Directorate General to holders of patent. The said information shall contain date of expiry of the said patent in accordance with the provisions of this article. Fee, which is not paid in the said 3 (three)-year-period is construed as a debt that still has to be paid by holders of the said patent.

Paragraph (2)

Annual fee XVIII shall be paid not later than the end of the XVIII year. The details below are following the examples of clarifications of Article 114.

- Payment of annual fee XVIII (April 1, 2014-March 30, 2015) shall be made not later than January 5, 2016.

- Payment of annual fee XIX (April 1, 2015-March 30, 2016) shall be made not later than January 5, 2017.

- Payment of annual fee XX (April 1, 2016-March 30, 2017) shall be made not later than January 5, 2018.

- Annual fee XVIII, which is not paid on January 5, 2016, will cause the patent be declared as null and void since January 5, 2016. Even though the fee, which is not paid in 1 (one) year is construed as a debt that still has to be paid by holders of the said patent. Such as the case with payment of annual fee in the following years.

Paragraph (3)

Sufficiently clear Article 116

Paragraph (1)

With reference to the clarifications of Article 114 :

a. Should the first annual fee is paid after January 4, 2001 (for example, May 1, 2001), total fee that has to be paid on the said date by holders of patent is (A+B+C) + (2.5% x 4 x (A+B+C)). b. Overdue payment of annual fee in the following years (for example, annual fee V is paid on

June 1, 2003) after the annual fees in the previous years (A+B+C+D) shall be paid on time, so that the total fee that has to be paid is E + 2.5% x 5 x E).

Paragraphs (2) and (3) Sufficiently clear Article 117

Sufficiently clear Article 118

Paragraphs (1) and 2) Sufficiently clear Paragraph (3)

What is meant by commercial court's judgement is a final judgement. Article 119

Paragraphs (1) and 2)

Reversal testimony (pembuktian terbalik) shall be implemented considering the difficulty of handling patent disputes for process purposes. Hence, in order to keep the balanced reasonable interests between the parties, the judges shall still be authorized to order owners of patent to firstly deliver evidence of copy of patent certificate for the said process and beginning evidence strengthening the assumption. Apart from that, the judges shall also consider the interest of the defendants to obtain protection against the confidentiality of the process that has been detailed in the testimony conducted in court.

The meaning of patented process or patent for process, basically refers to similar term, i.e. process-patent.

Paragraph (3)

Protection against the confidentiality is very important considering that the characteristics of the process, which is in general, very easy to manipulate or perfect by persons having general knowledge in certain technical or technological fields. Therefore, upon the parties' request, the judges may determine that the court is closed for public.

Article 120 Paragraph (1)

Except if otherwise stated herein, what is meant by bailiff is bailiff of the lower/commercial court.

Paragraphs (2) up to (4) Sufficiently clear Article 122

Sufficiently clear Article 123

Paragraph (1)

Sufficiently clear Paragraph (2)

Except if otherwise stated, what is meant by registrar is the registrar of the High/Commercial Court.

Paragraphs (3) up to (5) Sufficiently clear Paragraph (6)

What is meant by final appeal documents are applications for final appeal, memorandums of final appeal, and/or counter final appeal, and other documents.

Paragraphs (7) up to (13) Sufficiently clear Article 124

What is meant by Alternative Dispute Settlement is negotiation, mediation, conciliation, and other methods chosen by the parties in accordance with applicable laws.

Article 125 Paragraph (a)

This provision is intended to prevent more losses to the parties, whose rights are violated so that, upon applicant's request, the commercial court is authorized to issue temporary judgement in order to prevent continuous violations and introduction of goods, which are deemed violating patent into the trading line, including import activities.

Paragraphs (b) and (c) Sufficiently clear

Article 126 up to 134 Sufficiently clear Article 135

Paragraph (a)

Exception of import of pharmaceutical products in this paragraph is to guarantee reasonable price and to fulfill the feeling of justice of the said pharmaceutical products, which are very much required for human's health. This provision may be used if the price of a production in Indonesia is very expensive compared to the price prevailing at international market.

Paragraph (b)

The exemption as mentioned in paragraph (b) of this article is to guarantee the availability of pharmaceutical products by other parties after the expiry of protection period of patent. Therefore, the reasonable price of the said pharmaceutical products may be tried to be achieved. What is meant by license purposes is a process for the administration of license for circulation and production of pharmaceutical products at the related institution.

Articles 136 up to 139 Sufficiently clear