fbpx
Search

Don’t Risk It! 5 Legal Consequences of Unregistered Brands in Indonesia

Don’t risk your brand! Learn the legal consequences of unregistered trademarks in Indonesia and how Documenta.id helps secure your rights.
Legal Consequences

Don’t Risk It! 5 Legal Consequences of Unregistered Brands in Indonesia

Table of Contents

  1. Why Brand Registration is Non-Negotiable
  2. Legal Consequence 1: Lawsuits and Infringement Claims
  3. Legal Consequence 2: Loss of Exclusive Rights to Your Brand
  4. Legal Consequence 3: Revenue Loss to Counterfeiters
  5. Legal Consequence 4: Inability to Expand Globally
  6. Legal Consequence 5: Costly Rebranding Efforts
  7. Case Study: How a Local Café Lost Its Brand to a Competitor
  8. 5 Steps to Register Your Brand in Indonesia
  9. Common Mistakes to Avoid During Registration
  10. How Documenta.id Safeguards Your Brand
  11. FAQs About Trademark Registration
  12. Final Takeaways to Protect Your Business

1. Why Brand Registration is Non-Negotiable

An unregistered brand is a sitting duck for legal disputes, copycats, and financial losses. In Indonesia, failing to register your trademark under Law No. 20/2016 exposes your business to:

  • Lawsuits: Competitors can claim ownership of your brand.
  • Counterfeit Sales: Copycats steal your market share.
  • Forced Rebranding: Costly and time-consuming.

The Directorate General of Intellectual Property (DGIP) reports 8,000+ trademark disputes annually, with unregistered brands losing 90% of cases.

Unregistered brand risks infographic
Alt text: Legal Consequences of Unregistered Brands in Indonesia


2. Legal Consequence 1: Lawsuits and Infringement Claims

If your brand is unregistered, competitors or squatters can:

  • Sue for Infringement: Claim you’re using their brand.
  • Demand Damages: Courts may award compensation up to IDR 2 billion.
  • Block Imports/Exports: Customs can seize goods for suspected infringement.

Example: A Bali-based clothing brand was sued for IDR 1.5 billion after a competitor registered their unmarked logo first.


3. Legal Consequence 2: Loss of Exclusive Rights to Your Brand

Without registration, you can’t:

  • Stop Others: Competitors freely use your brand name, logo, or slogan.
  • License or Franchise: No legal basis to monetize your brand.
  • Sell or Transfer Rights: Unregistered brands hold no market value.

4. Legal Consequence 3: Revenue Loss to Counterfeiters

Copycats thrive on unregistered brands:

  • Lost Sales: 30% of consumers accidentally buy counterfeit products.
  • Brand Dilution: Poor-quality fakes harm your reputation.
  • No Legal Recourse: You can’t sue counterfeiters without a trademark.

Statistic: Counterfeiting costs Indonesian businesses IDR 110 trillion/year (Source: OECD).


5. Legal Consequence 4: Inability to Expand Globally

Unregistered brands face barriers in international markets:

  • No Protection Abroad: Trademarks are territorial (e.g., registration in Indonesia doesn’t cover the EU).
  • Rejection by Partners: Franchisees or investors demand registered IP.

Solution: Use the Madrid Protocol to register in 130+ countries with one application.


6. Legal Consequence 5: Costly Rebranding Efforts

If someone registers your brand first, you must:

  • Rebrand Entirely: New name, logo, packaging, and marketing.
  • Lose Customer Trust: Confusion and loyalty erosion.
  • Waste Resources: Costs average IDR 500 million for SMEs.

7. Case Study: How a Local Café Lost Its Brand to a Competitor

JavaBrew Café operated for 3 years without trademarking its name. A competitor registered “JavaBrew” and demanded:

  • IDR 300 million in damages.
  • Immediate rebranding.

Outcome: JavaBrew rebranded as Moonlight Café, losing 40% of its customer base.


8. 5 Steps to Register Your Brand in Indonesia

  1. Trademark Search: Use Documenta.id’s Search Tool to check availability.
  2. Prepare Documents: Logo, business license (SIUP), and applicant details.
  3. Submit to DGIP: File online via the DGIP portal.
  4. Respond to Objections: Address any conflicts during the 30-day opposition period.
  5. Receive Certificate: Approval takes 8–12 months.

9. Common Mistakes to Avoid During Registration

  1. Generic Names: “Jakarta Bakery” is unregistrable; opt for unique names like “JakartaDelight.”
  2. Ignoring Classes: Register under relevant Nice Classes (e.g., Class 30 for baked goods).
  3. Late Renewals: Trademarks expire after 10 years; renew promptly.
  4. DIY Applications: 70% of DIY filings face rejections due to errors.

10. How Documenta.id Safeguards Your Brand

Documenta.id offers end-to-end trademark solutions:

  • Trademark Search & Filing: Avoid conflicts and streamline registration.
  • Global Protection: Madrid Protocol filings for international markets.
  • Monitoring & Enforcement: Detect counterfeits and issue takedowns.

👉 Secure Your Brand Today—Start Here


11. FAQs About Trademark Registration

Q1: How long does trademark registration take in Indonesia?
A: 8–12 months via DGIP.

Q2: Can I trademark a slogan?
A: Yes! Slogans like Nike’s “Just Do It” are protected.

Q3: What if my trademark application is rejected?
A: Documenta.id’s lawyers help amend and resubmit applications.


12. Final Takeaways to Protect Your Business

  • Register your trademark early to avoid legal battles.
  • Monitor for counterfeits and enforce your rights.
  • Partner with Documenta.id for hassle-free registration and global protection.

Need Help?
📞 +62 851-8322-7997 (DISA) | 📧 halo@documenta.id

Still confused about Brands?

Click the tombol on the right to Ask the Documenta Team

Artikel Lainnya
construction permit benefits indonesia
Construction Permit

Construction Permits in Indonesia: Reap the Benefits of a Construction Permit

Securing a construction permit in Indonesia is a crucial step in any construction project. This legal document grants you the authority to commence construction activities, ensuring compliance with local regulations and standards. By obtaining a construction permit, you can unlock a myriad of benefits that will positively impact your project’s success.

Baca »
Agreement perjanjian
Agreement

Understanding Agreements: A Comprehensive Overview

An agreement is a fundamental aspect of human interaction, serving as a foundation for relationships, transactions, and collaborations. Whether in personal relationships, business dealings, or legal contexts, agreements play a crucial role in defining the terms and expectations between parties. This article aims to provide a comprehensive overview of agreements, exploring their types, significance, and key components.

Baca »
foreign
Bisnis

Establishment of Foreign Direct Investment in Indonesia

Foreign Direct Investment (FDI) in Indonesia refers to the direct investment by a company or individual from one country into business operations in another country. This investment involves establishing new operations or acquiring existing assets in the host country. Indonesia has been actively promoting FDI to accelerate economic growth, create jobs, and transfer technology.

Baca »

Jika anda sudah pernah terdaftar sebagai Documenta User, anda bisa lanjut dengan login dibawah ini

Mohon maaf, untuk pendaftaran sementara hanya dapat dilakukan melalui pesan WhatsApp kepada tim kami

Documenta Artikel
Our Contact