The Importance of Brand Protection for Startups

As the economy in Indonesia continues to grow to this very day, the number of new startups in Indonesia are growing rapidly. Most of them are engaging in digital products or services business, while some of them are engaging in conventional business. As we can see, there are 5 startups acknowledged as unicorns in Indonesia since 2019. These companies are  creating and developing numerous brands as the identity of their products. In parallel, the brand protection should not be neglected to protect the emerging business.

Unfortunately, some startups do not consider a brand protection as significant step and to register their trademark to Directorate General of Intellectual Property Rights of Republic of Indonesia (DGIPin conducting the business. They might not aware of the importance of registering a trademark or just realized to do so when a dispute is arised.

Before launching a product to market, it is recommended to register a trademark for relevant goods or services to DGIPTrademark registration will protect the brands from potential infringement such as unauthorised use or brand counterfeiting. As of August 2019, Indonesia has enacted e-filling system to file a trademark application at DGIP which applies for local and foreign applicant. E-filling system helps anyone to file a trademark application online, which makes the system easier and simpler.

Once registered, a trademark is protected under Law No. 20 year 2016 on Trademark and Geographical Indications for 10 years as of the filling date. The registration of trademark is the first step to protect the brands as the company intangible asset, which is valuable to the business and consumers. Additionally, a registered trademark verifies legal clarity to commercialize a brand in the course of business. Once a trademark is registered, the brand owner will have more leverage to enforce its rights against such infringement. The protection under the law would be main legal basis for law enforcement.

Written by: Threeas Novayanti

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