Applying for trademark registration is one of the important things to do for MSME business people. This is because the trademark adheres to the first to file principle, where a person who makes an application first and the application is accepted, will obtain rights to the registered trademark. So, whoever is faster to apply for registration and obtain a trademark certificate, then he will get legal protection. Unfortunately, according to the Minister of Law and Human Rights, Yasonna H. Laoly, of the 64.1 million MSME players in Indonesia, only 10,362 have registered their trademarks. This means that there are still many MSME players who have not obtained legal protection for their trademarks. In fact, by registering trademarks, MSMEs are not only safe from trademark misuse by other irresponsible parties, but are also believed to be able to boost the income or turnover of MSMEs. Moreover, now the application for trademark registration for MSMEs and the public can also be done online, without having to come directly to the office of the Directorate General of Intellectual Property (DJKI) of the Ministry of Law and Human Rights. The registration fee can also be paid by transfer. Then, how can MSMEs apply for trademark registration? What are the requirements needed and the benefits that can be obtained if you have registered a trademark? Let’s discuss it together!
What is a Brand?
Before discussing further about the requirements and procedures for trademark registration for MSMEs, KH Buddy needs to first understand what is meant by trademark and its types. According to Law No. 20/2016, a trademark is defined as a sign that can be displayed graphically in the form of images, logos, names, words, letters, numbers, color arrangements, in two-dimensional and/or three-dimensional form, sound, holograms, or a combination of two or more of these elements to distinguish goods and/or services produced by persons or legal entities in the trading activities of goods and/or services. Trademark itself is divided into two types, namely:
- Trademark, which is a mark used on goods traded by a person or several persons jointly or a legal entity that distinguishes with other similar goods.
- Service marks, which are marks used on services traded by a person or several persons jointly or legal entities to distinguish with other similar services.
Trademark Registration Requirements for MSMEs
After knowing the definition, the next step that needs to be considered by MSME business people who want to register a trademark is to fulfill the requirements needed. It should be noted, in order to register with the DJKI, a trademark must meet the following criteria:
- Not contrary to state ideology, laws and regulations, morality, religion, decency, or public order;
- Not the same as, related to, or merely mentioning the goods and/or services for which registration is sought;
- Does not contain elements that can mislead the public about the origin, quality, type, size, variety, purpose of use of the goods and/or services for which registration is requested or is not the name of a protected plant variety for similar goods and/or services;
- Contain information that is in accordance with the quality, benefits, or efficacy of the goods and/or services produced;
- Have differentiating power; and/or
- Not a public name and/or publicly owned institution.
After fulfilling the above criteria, MSME players can then prepare a number of required documents which include:
- Brand etiquette/labeling
- Applicant’s signature
- Assisted MSME recommendation letter or Certificate of UMKM Assisted by the Office (Original)
- MSME Statement Letter with Stamp
Please note that the term for trademark rights is only valid for 10 years. For this reason, for MSMEs that want to extend their trademark rights, there will be another fee of Rp1,000,000 million if done online and Rp1,200,000 offline. In addition, trademark registration for MSMEs both online and offline can also be rejected if the trademark:
- Has similarities in principle or in its entirety with the trademark owned by another party that has been registered in advance for similar goods and/or services;
- Has similarities in essence or in its entirety with a well-known trademark owned by another party for similar goods and/or services;
- Having similarities in principle or in whole with well-known trademarks owned by other parties for goods and/or services that are not similar insofar as they fulfill certain requirements that are further stipulated by government regulations;
- Has similarities in principle or in whole with already known geographical indications;
- Represents or resembles the name of a famous person, photograph, or the name of a legal entity owned by another person, except with the written consent of the rightful owner;
- Is a copy or resembles the name or abbreviation of a name, flag, emblem or symbol or emblem of a state or national or international institution, except with the written consent of the authorized party;
- Represents or resembles an official mark or seal used by the state or a government agency, except with the written consent of the authorized party.
Benefits of Registering Trademarks for MSMEs
Trademark registration with the DGKI is a form of protection for businesses, including MSMEs. By registering it, MSMEs not only obtain exclusive rights to the brand but can also add business assets that have value. This is because a trademark can be a driving factor for a product to have large sales in the market. Moreover, if the brand is made with a unique composition of writing creations, images, and colors so that it can make potential customers interested in buying. To further convince KH Friend of the importance of registering a brand, let’s look at a series of other benefits that MSME players can get, namely:
- As the identity of a product of goods and / or services owned by MSME actors
- Can increase competitiveness in the business world
- Able to be the strength of the product to be more easily accepted by the community
- Become one of the marketing strategies in building product image and reputation
- Brand rights can be licensed, thus becoming a direct source of income in the form of royalties
- Can be a valuable business asset
- Preventing parties from using and/or marketing products that are identical or similar to your mark.
- Receive legal protection for a period of 10 years from the date of receipt, and can be extended for the same period of time
- Contribute to market transparency, which benefits consumers as well as businesses
- Brings future economic benefits
- Increase consumer confidence in the quality of products sold
That’s all about trademark registration for MSMEs, from the requirements, procedures, to the benefits. From this explanation, we can conclude that trademark registration is an important thing to do by businesses to secure brand ownership rights and avoid disputes.
KH Contact
Well, for KH friends who are currently also running an MSME business, let’s start considering registering trademarks as early as possible in order to avoid harmful actions in the future! KH pals also don’t need to worry and bother to take care of it because you can contact Kontrak Hukum. Kontrak Hukum is the first digital platform that provides trusted, easy, and affordable legal services. Through the trademark registration service, we will help KH pals to process trademark registration through the trademark check process first. For more information, KH friends can visit the page: https://kontrakhukum.com/kekayaan-intelektual/#merek Or have further questions about business and MSME legality? You can also contact us via the following link Ask KH, or Direct Message (DM) to Instagram @kontrakhukum. Kontrak Hukum is ready to help MSMEs upgrade with legality!
