It turns out that many Micro and Medium Enterprises (MSMEs) in Indonesia still do not understand the importance of registering trademarks properly and correctly. So far, MSME players are said to only focus on production and marketing, while trademark matters are still underestimated. From the observations of the Directorate General of Intellectual Property (DJKI) of the Ministry of Law and Human Rights at the National MSME Day 2023 Expo, out of 100 MSME participants who were asked about trademarks, none of them had registered trademarks. In 2022, out of 82 thousand trademark registration applications submitted, only 62 thousand registrations were accepted, or equivalent to about 75 percent. “The remaining 25 percent were rejected. Not only that, the awareness of business actors to register trademarks is also not optimal,” said CEO of Mebiso.com, Hesti Rosa. Even though the central government hopes that MSME players can help support the national economy of the community, one of which is serious about protecting their brands. This is because trademark is one type of Intellectual Property (IP) that must be legally protected. Trademarks that have been registered can prevent claims from irresponsible parties and can protect the brand from being used by others without permission. Secretary of DJKI, Sucipto stated that products that have registered IP such as trademarks can improve quality and build consumer confidence. “People who have the awareness to register their works, in addition to their works and businesses being protected, will also have an impact on increasing economic value in the territory of Indonesia,” concluded Sucipto.
DJKI Says About Trademark Registration Obstacles
Regarding the registration of this brand, Director of Trademark and Geographical Indication of DJKI, Nofli said, although it is easy, in fact there are obstacles to the registration of this brand. MSME actors are constrained by costs. Whereas as long as there is an official letter and a statement that the person concerned is an MSME actor, the government will provide relief. Simply by paying Rp500 thousand, then it can register the brand. Compared to the general applicant of Rp1.8 million, there are also facilities from the Ministry of Tourism and the Ministry of Cooperatives and SMEs, free of charge to obtain IPR, especially trademark applications. In addition, related to the trademark registration process, it does require a longer time than applying for a license. This must be done carefully because it involves the granting of rights. The process must be in accordance with the rules of international law. In general, the government has provided acceleration, which was previously in Law 20/2016 the registration application process was 8-9 months, after Law 11/2020 it became only 4-6 months. The DJKI asks MSME players to conduct a search on the website as a step of anticipation and consultation whether the brand to be registered already exists or not.
Not Registering Trademarks, What are the Consequences?
As mentioned, trademark registration is basic for business actors, including MSMEs. With the registration of the trademark, MSME players can use it for various trading activities. Furthermore, the trademark can also get legal protection. It would be a great loss if you do not register a trademark. Here are some losses that may be obtained when not registering a trademark:
Brand Misuse
The first disadvantage is brand misuse. If you do not register your trademark immediately, then there is a great risk of misuse of the mark by irresponsible people. Unregistered trademarks can be used improperly. If there are people who misuse the brand with the aim of harming, MSME actors cannot sue them to the green table. This is because the trademark is still not registered so they do not have the right to report.
Hard to Sell in the Market
Nowadays, there are many MSME players who develop their business offline and online. The trademarks used will usually be similar to one another. Therefore, MSME players must be creative in creating different trademarks in order to attract consumers. Thus, trademarks that have been registered can get many benefits. One of them is to increase consumer interest in the products offered. With this trademark registration, consumers become more aware of what the characteristics of the products being traded are.
No Special Rights
The last disadvantage of not registering a trademark is not getting special or exclusive rights. When MSME players register a trademark, there are some special rights that can be obtained. One of them is the right to allow others to use the trademark. There is also the right to prohibit others from using your trademark and the right to license or transfer trademark rights.
ALSO READ: How to Register a Brand for MSMEs?
Remember, a brand is a long-term investment, so don’t forget to register it officially. This is important to avoid risks and losses as mentioned above.
KH Contact
As a businessman, have you officially registered your trademark with DJKI Kemenkumham? Kontrak Hukum is ready to help you! Together with professional experts, you can consult about trademark creation including registration. It must be safe and easy because of the trademark analysis process first with a competent and officially registered IPR consultant. Let’s make your trademark affairs easier by visiting the KH Services – Trademark page. If you have questions about other MSME needs, please consult for free at Ask KH and send a direct message (DM) to Instagram @kontrakhukum.
