How to Register a Brand for MSMEs?

Registering a trademark is an important thing that should not be missed and must be done immediately by MSMEs when running their business. This is because trademarks adhere 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 register and obtain a trademark certificate, then he will get legal protection. Unfortunately, according to Minister of Law and Human Rights Yasonna H. Laoly, of the 64.1 million MSME players in Indonesia, only 10,632 have registered their trademarks. This means that there are still millions of MSME players who have not obtained legal protection for their trademarks. Whereas by registering their trademarks, MSMEs not only obtain exclusive rights to the brand but also add to the company’s assets that have value. Well, to find out more about trademark registration for MSMEs and the importance of trademarks for MSMEs, Contract Law discusses it as follows.

What is a Brand?

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 forms, 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:

Trademarks are marks used on goods traded by a person or several persons jointly or legal entities to distinguish with other similar goods.
Service Marks are marks used on services traded by a person or several persons jointly or legal entities to distinguish with other similar services.

Do MSMEs Need to Do Brand Checking?

Although trademark checking is not mandatory, it should not be missed by MSMEs before registering a trademark. This trademark check process is done to:

Knowing whether the brand owned by KH Friend can be registered or not.
Checking is also done with the aim of avoiding rejection when applying for registration or lawsuits filed by other parties due to the similarity of trademarks that have been registered.
Another reason why MSMEs need to check the trademark is because of the length and duration of the trademark registration process. Rather than MSMEs have registered, but in fact the trademarks owned violate the trademark provisions or cannot be registered.

How do MSMEs Register a Trademark?

After checking the trademark, MSMEs must apply for trademark registration to the minister through the Directorate General of Intellectual Property of the Ministry of Law and Human Rights electronically or non-electronically by coming directly to the DJKI. This application can be submitted by the applicant or his/her proxy. If the application is made through a power of attorney, do not forget to make a power of attorney and attach it. In addition to the power of attorney, business actors must also attach other documents consisting of :

Applicant’s Identity (KTP if submitted by an individual, copy of Deed, SK establishment of a business entity, KTP of the President Director if submitted on behalf of a business entity).
Brand Etiquette/Labeling.
Power of attorney if the application is represented.
Assisted SME Recommendation Letter or Office Assisted SME Certificate (Original) and Stamped SME Statement Letter (for Micro and Small Business applicants only).
Evidence showing the name of the country as well as the date on which the mark was first registered in the case of an application filed with priority rights.

Applications that meet the above requirements will receive a receipt date. Within 15 days after the date of receipt, a formality check will be conducted. If it is complete, the announcement of the application in the official trademark news will be made for 2 months. During this period, any party may file an objection if there are sufficient reasons accompanied by evidence that the trademark applied for registration is a trademark that based on the regulations cannot be registered or must be rejected. The criteria for trademarks that cannot be registered are listed in Article 20 of the Trademark Law, while the criteria for trademarks that must be rejected are listed in Article 21 of the Trademark Law. If within 2 months of the announcement, no party files an objection, the application for trademark registration will enter the next stage, which is substantive examination. According to Permenkumham No. 12 of 2021, the substantive examination lasts for a maximum of 30 days. In the substantive examination, it will be decided whether the trademark application can be registered or not. If it can, the DJKI will register the trademark and notify the applicant or his attorney of the trademark registration. Once registered, a trademark certificate will be issued and given to the applicant or its attorney. The DJKI will also make an announcement of the trademark registration in the official trademark news.

What is an Unregistrable or Refusable Mark?

According to Permenkumham No. 12 of 2021, an application for trademark registration may be rejected by the minister in the event that the trademark applied for is substantially or wholly similar to:

Registered trademarks owned by other parties or which have been applied for in advance by other parties for similar goods and/or services.
A well-known trademark owned by another party for similar goods and/or services.
A well-known trademark owned by another party for non-similar goods and/or services that meet certain requirements.
Registered geographical indication.

An application for registration of a mark may also be refused by the minister if the mark is :

Represents or resembles the name or abbreviation of a famous person, photograph, or the name of a legal entity owned by another person, unless there is written consent from the rightful owner.
Is a copy or resembles the name or abbreviation of the name, flag, emblem or symbol or emblem of a country, or national or international institution, unless done 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.
Filed by an applicant with bad faith.

In addition to the reasons for refusal of a trademark registration application above, a trademark also cannot be registered if the trademark:

Contrary to state ideology, laws and regulations, morality, religion, decency, or public order.
Similar to, related to, or merely mentioning the goods and/or services for which registration is sought.
Contains 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 the name of a protected plant variety for similar goods and/or services.
Containing information that is not in accordance with the quality, benefits, or efficacy of the goods and/or services produced.
Does not have differentiating power.
Is a public name and/or symbol of public property.
Contains forms that are functional.

Why should MSMEs register a brand?

There are several reasons why MSMEs should register their brands. The reasons include:

Brand Rights

By registering their trademarks, MSMEs will obtain trademark rights. Trademark rights are exclusive rights granted by the state to the owner of a registered trademark for a certain period of time by using the trademark itself or giving permission to other parties to use it.

Face of MSMEs

When starting a business, the brand will be used as the face of MSMEs or the identity of MSMEs. When MSMEs have a unique brand name and logo, it is likely that the brand will be easily recognized and remembered by the public as the “face of MSMEs”.

MSME Assets

The last reason why MSMEs should register their brands is because brands are important assets for MSMEs. When the brand is well known, the reputation of the goods/services sold will affect the MSME. Financially, for example, a well-known brand will invite investors to come invest.

So, it would be a pity if the brand owned by KH Friend has not been registered because it will make the brand have no value anymore.

KH Contact

Well, that’s the explanation of how to register a brand for MSMEs to the importance of brands for MSMEs. For KH Pals who have not registered their brands, don’t forget to register immediately because there are many benefits that can be obtained for businesses that register their brands. If you still have questions about brands and their registration, you can contact Kontrak Hukum at the following link Ask KH or via Instagram @kontrakhukum.