In the ever-growing digital age, Intellectual Property Rights (IPR) is not only something that big companies need to think about, but it is also important for startups and MSMEs. Unfortunately, there are many entrepreneurs who do not realize that IPR is an important thing that must be included in every product they create. Starting from the name of the goods, brands, to recipes or unique ways of marketing their products or services. Due to this ignorance, some entrepreneurs have suffered losses. There are those whose brands are copied and recipes are stolen due to not maintaining IPR, even businesses are not only threatened with loss, but also potentially bankrupt. So, what is IPR? Why is IPR important for a business or company? Here’s the full discussion.
Overview of IPR
IPR is an exclusive right granted by law or regulation to a person or group of people for their copyrighted work. This copyrighted work can be in the form of a product, service, or process that is useful for society. In essence, IPR is the right to economically enjoy the results of intellectual creativity. In the field of trade, intellectual property rights are useful to protect entrepreneurs from the possibility of unauthorized use of their property rights. Thus, it can be concluded that intellectual property rights are all types of intellectual assets produced by and/or on behalf of a business or company, ranging from brand names, operational systems, inventions, to recipes. Reporting from the Ministry of Trade (Kemendag) website, IPR is classified into two, namely copyright and industrial property rights.
Copyright
Copyright is a special right owned by the creator of the work to announce a work as his own as well as reproduce the work for economic purposes. The examples of copyright types of IPR include copyright songs, copyright books, copyright paintings, copyright movies, and others.
Industrial Property Rights
This is a right that protects a company from various kinds of plagiarism. The forms of protection include:
- Patents, which are exclusive rights obtained by inventors or discoverers of new methods, concepts, or systems. Example: Elon Musk is the main holder of the Tesla car system patent.
- Industrial Design, which is an exclusive right to a creation of shape, design, composition of lines and colors, or a combination of the three in the form of 2D or 3D products that become the main selling value of the product.
- Geographical Indication, is the exclusive right of a place to recognize a product as the result of its production. Examples of the application of geographical indication rights include the placement of the words “Made in Indonesia” in products from Indonesia.
- Layout Design of Integrated Circuits (DTLST), which is an exclusive right to the design of systems/circuits that form the fundamentals/basic ingredients of a technology product. Examples include the Android system, Google’s machine learning algorithms, and so on.
- Trade Secrets, which are exclusive rights to concoctions or processed information that are the main economic value of a business. For example, a franchise’s food recipe.
- Trademark, is a sign in the form of images and names consisting of words, letters, and numbers to distinguish in the trade of goods or services. Examples are MW, Iphone, ASUS, and HP.
Why is IPR important for business?
Have you ever been to a shopping mall and seen a lot of pirated or plagiarized products? From music and movie CDs/cassettes to fashion items belonging to famous brands. Yes, it shows that intellectual property protection in Indonesia is a serious problem. Where pirated goods can still be sold freely without any action from law enforcement. Some people may think that IPR owners do not suffer from pirated products in the market. They may even think that pirated products help bring brands to the market. However, you should know that this kind of thinking is not true. Apart from the difference in the quality of products sold, pirated products can also have a negative impact on IPR owners. Basically, IPR protection is very important for businesses and companies because:
As Legal Protection for Creators and Their Works
If you register a work or business asset such as a brand, name of goods, to trade secrets to HAKI, then you and the business asset will automatically get legal protection. You as the owner of the work is certainly more free in increasing economic value without fear of violating the law.
As a Form of Anticipation of Violations
Registering a copyrighted work or business asset to HAKI also gives entrepreneurs a strong foundation to fight against people who use your business assets illegally. That way, other parties can be more careful not to steal other business assets.
Increasing Competition and Expanding Market Share
Not everyone is able to channel their creativity to produce works. With HAKI, people will be motivated to work and innovate so that competition will increase.
Has Monopoly Rights
You must remember, this HAKI registration system is only given to those who first register with the Directorate General of HAKI. So, while your product is still new and has good potential, it must be registered immediately.
Can be used as collateral for bank loans
In accordance with Government Regulation (PP) No. 24 of 2022 on Creative Economy, intellectual property products such as YouTube content, music, culinary, and fashion can be used as collateral for loans to banks. However, intellectual property that can be used as debt collateral needs to meet two conditions, namely registered with the Director General of IPR of the Ministry of Law and Human Rights and has been managed (commercialized) independently or transferred its rights to other parties.
KH Contact
Now you understand why HAKI is important for businesses and companies. However, it should be noted that every right that is classified into HAKI must obtain legal force for its work or creation. For this reason, HAKI registration is required.
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In the protection of HAKI in Indonesia, there is an agency authorized to manage it, in this case the Director General of HAKI under the Indonesian Ministry of Law and Human Rights. Well, for KH Pals who also want to register HAKI to the Ministry of Law and Human Rights, you can immediately contact Kontrak Hukum. Kontrak Hukum is the first digital platform in Indonesia that provides the most complete, reliable, and affordable legal services, one of which is HAKI registration. No need to worry, because whatever business assets that KH Friend will register as HAKI, everything is available at Kontrak Hukum. The process is also very easy, fast, and efficient, you know! Come on, register your product or business asset as HAKI and feel the benefits by visiting the KH Services – Intellectual Property page. If you have questions about other business needs, please consult for free at Ask KH or via Instagram @kontrakhukum.
