Are Companies Required to Register Their Trademarks with the DGIP? Understanding the Legal Basis and Procedures

Introduction

Trademarks serve as a vital identity for every company to distinguish the products or services they offer from others in the market. A registered trademark grants exclusive rights to its owner to use the mark in trading activities. These rights prevent other parties from using similar or identical marks that could cause consumer confusion and damage the company's reputation. In the business world, a trademark is not merely a name or logo, but also an intangible asset reflecting economic value and the quality of products or services offered to consumers.

However, amidst business competition and the increasing use of business identities that resemble those of other parties, many businesses still perceive trademark registration merely as an administrative process. Some businesses only realize the importance of legal protection after other parties use or claim their marks, leading to legal disputes. While trademark registration is intended to provide legal protection and business certainty, questions remain regarding the extent to which companies are obligated to register their trademarks under the prevailing laws in Indonesia.

Legal Basis

The legal basis is Law Number 20 of 2016 on Trademarks and Geographical Indications (“Trademark Law”) as amended by Law Number 6 of 2023 on the Enactment of Government Regulation in Lieu of Law Number 2 of 2022 on Job Creation into Law (“Job Creation Law”), as well as its latest technical implementing regulation, Regulation of the Minister of Law Number 5 of 2026 on Trademark Registration (“MoL Regulation 5/2026”).

Article 3 of the Trademark Law

“Rights to a trademark are obtained after the trademark is registered.”

To obtain exclusive rights over a trademark, a company is required to register the mark with the Directorate General of Intellectual Property (“DGIP”) (Direktorat Jenderal Kekayaan Intelektual, “DJKI”). This registration provides valid legal protection for the trademark owner, which can prevent other parties from using the same or similar marks without authorization. Without registration, trademark rights cannot be legally enforced.

Article 4 Paragraphs (1) and (2) of the Trademark Law

“(1) Applications for Trademark registration shall be filed by the Applicant or their Proxy with the Minister electronically or non-electronically in the Indonesian language.

(2) The Application as referred to in paragraph (1) must include:

a. the date, month, and year of the Application;

b. the full name, nationality, and address of the Applicant;

c. the full name and address of the Proxy if the Application is filed through a Proxy;

d. colors if the Trademark for which registration is sought uses color elements;

e. the name of the country and the date of the first Trademark request in the event that the Application is filed with Priority Rights; and

f. the class of goods and/or class of services as well as the description of the types of goods and/or types of services.”

Applications for trademark registration must be submitted to the Minister through the DGIP. Technically, Article 5 of MoL Regulation 5/2026 stipulates that registration is conducted electronically through the official website, while still facilitating non-electronic registration via counters at the DGIP office or local Regional Offices of the Ministry of Law for applicants requiring assistance. In accordance with the requirements of Article 4 of the Trademark Law as further detailed in Article 2 of MoL Regulation 5/2026, the company as the applicant must include their full identity and trademark description, with the additional obligation to attach specific supporting documents such as a statement of trademark ownership, legal entity establishment documents, and proof of Micro and Small Enterprise status to ensure the validity of the applicant's legal standing and the adjustment of application fees.

Article 20 of the Trademark Law (as amended by Law 6/2023)

“A Trademark cannot be registered if it:

a. contradicts the state ideology, laws and regulations, morality, religion, ethics, or public order;

b. is identical to, related to, or merely mentions the goods and/or services for which registration is sought;

c. contains elements that may mislead the public regarding the origin, quality, type, size, variety, or intended use of the goods and/or services for which registration is sought or constitutes the name of a protected plant variety for similar goods and/or services;

d. contains information that does not correspond to the quality, benefits, or efficacy of the produced goods and/or services;

e. lacks distinctiveness;

f. constitutes a common name and/or a public symbol; and/or

g. contains a functional form.”

A trademark cannot be registered if it contains prohibited elements, such as those contradicting morality, religion, or public order. This includes prohibitions on trademarks that may mislead the public regarding the quality or origin of goods, as well as the use of common names or public symbols that cannot be exclusively claimed by a single party. A trademark must also possess sufficient distinctiveness so that consumers can easily recognize the origin of the product in the market.

Article 35 of the Trademark Law

“(1) A registered trademark receives legal protection for a period of 10 (ten) years from the Filing Date.

(2) The protection period as referred to in paragraph (1) may be extended for the same duration.”

Legal protection for registered trademark owners is valid for 10 years from the application filing date. Unlike patents, trademark protection can be extended for the same duration. Extension applications can be filed within 6 (six) months before the protection period expires, or at the latest 6 (six) months after the protection period ends (subject to a fine). This provides certainty for businesses in maintaining their identity and business activities.

Risks of Sanctions for Infringers

Trademark registration is crucial as it serves as the entry point for trademark owners to sue other parties who infringe upon their rights. The following are the sanctions that may be imposed on parties who use registered trademarks without authorization:

1. Use of Identical Trademarks: Article 100 paragraph (1) of the Trademark Law stipulates that any party who, without right, uses a mark that is entirely identical to a registered trademark for similar goods and/or services may be subject to imprisonment for a maximum of 5 years and/or a maximum fine of Rp2,000,000,000.00.

2. Substantial Similarity: Article 100 paragraph (2) of the Trademark Law stipulates that any party who, without right, uses a mark that has substantial similarity to a registered trademark for similar goods and/or services may be subject to imprisonment for a maximum of 4 years and/or a maximum fine of Rp2,000,000,000.00.

3. Infringements Impacting Health or Safety: Article 100 paragraph (3) of the Trademark Law stipulates that if the unauthorized use of a trademark results in health issues, environmental disturbances, or human death, the perpetrator may be subject to imprisonment for a maximum of 10 years and/or a maximum fine of Rp5,000,000,000.00.
   

Strategic Steps to be Taken

In accordance with the official procedures regulated by law, the following are strategic steps that must be taken to ensure your trademark protection:

1. Fulfilling Minimum Requirements: Applicants need to ensure all administrative requirements are complete, such as the application form, trademark label, and proof of fee payment. MoL Regulation 5/2026 stipulates that applications be filed electronically. Specifically for Micro and Small Enterprises, applicants must attach supporting documents, such as a risk-based Business Identification Number (Nomor Induk Berusaha, “NIB”) through the Online Single Submission (“OSS”) or an Individual Company certificate. Furthermore, the government may also file applications for Collective Trademark registration to support the development of MSMEs and public services. MoL Regulation 5/2026 also regulates force majeure mechanisms for applicants affected by disasters or riots to obtain time extensions for completing requirements. The completeness of these documents is essential to obtain the application filing date.

2. Monitoring the Publication Announcement Period: After passing the formality examination, the trademark application will be announced in the Official Trademark Gazette for 2 (two) months. At this stage, the applicant needs to monitor for any written objections from other parties against the filed trademark application.

3. Providing Responses to Refusals or Objections: If objections are filed by other parties or a proposed refusal is issued by the Trademark Examiner as regulated in Article 17, the applicant may submit a written response to support the trademark registration application.

4. Substantive Examination and Certificate Issuance: The next stage involves a substantive examination of the filed trademark. The Trademark Examiner is required to complete the substantive examination no later than 30 days after the publication period ends if no objections are filed. If objections are filed, the examination must be completed within 90 days. If the trademark is declared to meet the requirements, the Minister of Law will issue the trademark certificate electronically. MoL Regulation 5/2026 also stipulates that the DGIP may issue official excerpts of trademark certificates within a maximum of 1 (one) day from the receipt of the excerpt request.
   

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Recommendations

1. Immediately register trademarks in accordance with the procedures under Article 4 to obtain exclusive rights and legal protection over trademarks used in business activities.

2. Ensure the trademark possesses distinctiveness and does not use prohibited elements, such as state emblems, common names, or signs of a functional nature, to avoid application refusal based on Article 20.

3. Use the trademark consistently in trading activities according to the types of goods and/or services registered. The non-use of a trademark for 3 (three) consecutive years can be a basis for other parties to file a trademark deletion lawsuit with the Commercial Court.

4. Perform trademark protection extensions within 6 (six) months before the 10-year validity period expires to ensure the trademark rights remain valid and legal protection is maintained.
   

Closing

Trademark registration is a vital step for companies to obtain legal protection over their business identity and the marks used in trading activities, as a trademark functions not only as a product or service differentiator but also as an intellectual asset with economic value and reputation for the company. In Indonesia, rights to a trademark are obtained through registration with the DGIP as regulated in Article 3 of the Trademark Law; therefore, companies that do not register their trademarks lack a strong legal basis to protect those marks from use by other parties. In addition to granting exclusive rights to the owner, trademark registration also provides legal certainty in conducting business activities, particularly as Minister of Law Regulation Number 5 of 2026 has regulated the electronic registration process, including provisions on substantive examination, certificate issuance, Collective Trademark registration, and time extension mechanisms in force majeure conditions. In the registration process, businesses must ensure that the filed trademark possesses distinctiveness and does not fall under the prohibited categories based on Article 20 of the Trademark Law to avoid application refusal. Trademark protection is valid for 10 years from the application filing date and can be extended according to applicable regulations. Trademark registration also serves as the basis for trademark owners to take legal action against parties using the mark without right, including through criminal sanctions and fines as regulated in Article 100 of the Trademark Law. Therefore, timely and procedurally compliant trademark registration is essential to maintain legal protection, business reputation, and the sustainability of the company's business activities.