As an entrepreneur, brand is something that KH pals should think about from the beginning before building a business, because the benefits of the brand itself are numerous. However, did you know that there are several types of brands that are regulated in legislation? Yes, due to its central role in shaping the image, identity, and perception of a product, service, or company in the minds of consumers, knowledge and selection of the right type of brand can be a strategic step in building long-term relationships with consumers, as well as differentiating products or services from competitors. Moreover, these various types of brands have also been classified and regulated in Law No. 20 Year 2016 on Trademarks and Geographical Indications (Trademark Law), to meet various markets and business purposes. So, what are the types of brands according to the Trademark Law? What distinguishes one type of brand from another? Let’s see the full explanation below!
What is a Brand?
Before discussing further about the types, it would be nice if we understand again what is called a trademark. Article 1 number 1 of the Trademark Law defines a trademark 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. In order to be used in accordance with its purpose, a trademark must be capable of distinguishing. That is, the mark must have the power in the form of certain signs that can distinguish the goods or services products offered by one company from another.
Types of Trademarks According to the Law
Based on the Trademark Law, trademarks are classified into three types, namely trademarks, service marks, and collective marks. If the word brand that we have been familiar with is not just a brand, but there are types that describe the products or services offered.
Trademark
Trademark is a mark used on goods traded by a person or several persons jointly or legal entities to distinguish with other similar goods (Article 1 point 2 of Trademark Law). Thus, trademarks based on the article are intended for products in the form of marketed goods.
Service Brand
While the service mark is a mark used on services traded by a person or several persons jointly or legal entities that distinguish with other similar services (Article 1 number 3 Trademark Law). Based on this definition, it can be seen that service marks are intended for services offered by businesses in carrying out their business activities.
Collective Brand
A collective mark is a mark that is used on goods and/or services with the same characteristics regarding the nature, general characteristics, and quality of the goods or services as well as their supervision that will be traded by several persons or legal entities jointly to distinguish with other similar goods and/or services (Article 1 point 4 of Trademark Law). Against collective trademark, there are special provisions if it wants to be registered. Provisions regarding collective trademarks are regulated in Article 46 through Article 51 of the Trademark Law.
Whatever type of brand is important to be registered at the DJKI!
Trademark is included in intellectual property rights, because it is something that distinguishes products and/or services that are unique and different from other products that may be similar. To be legally protected, a trademark must be officially registered with the Directorate General of Intellectual Property (DJKI) of the Ministry of Law and Human Rights. The purpose is to prevent parties from using the brand that has been created and misusing it. It should be noted, however, that 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.
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Thus the explanation of the types of brands. Hopefully, the information above can help you in determining and creating the appropriate type of brand and can consume your brand value to consumers, huh!
ALSO READ: Things to Consider Before Registering a Brand!
Remember that brands are also long-term investments, so don’t forget to register them officially. Registering a brand is important because it provides legal protection, prevents piracy, avoids disputes, increases business value, facilitates trade, and becomes proof of ownership in disputes. To do so, you can contact Kontrak Hukum. Together with professional experts, you can consult about brand creation including registration. It must be safe and easy because of the process of analyzing the brand first with a competent and officially registered IPR consultant, so it is guaranteed to be auto accepted by the DJKI!. Let’s make your business brand affairs easier by visiting the KH Services – Trademark page. If you have other questions, just consult with us at Ask KH or via Direct Message (DM) to Instagram @kontrakhukum.
