In an increasingly competitive world, ideas are key to achieving business success. An innovative and appropriate idea can open the door to sustainable business growth.
A unique idea helps a business to differentiate itself from its competitors. With a different idea, a company can capture the attention of consumers and create an emotional bond with potential customers. Yes, business ideas have become the most valuable asset for a company. However, the question that often arises is whether business ideas can be protected as intellectual property? In terms of answering that question, it is important for businesses to understand the protection options available and how to protect those ideas to prevent misuse by other parties.
Definition of Business Idea in Intellectual Property
An idea is a concept of thought that will be realized into a work. Without an idea, the creator will not be able to create a work, so this idea is important because it is the starting point for creating a work. In a business context, ideas refer to concepts or ideas about products, services or processes that have the potential to create value in the marketplace. Business ideas can arise from a variety of sources, including market observation, unmet consumer needs, new technological developments, or personal and professional experiences. Ideas are often identified with Intellectual Property. However, it is important to know that by definition, intellectual property is a right that arises from the result of thought that produces a product or process that is useful to humans. Intellectual property is called wealth because it has commercial value so that its legal protection can be owned exclusively. Based on this understanding, ideas have a conceptual or abstract nature. Therefore, ideas can only be given protection as intellectual property if they are realized in concrete form and meet the stipulated legal provisions.
How can a business idea be protected as intellectual property?
Ideas can only be protected as intellectual property if they have been expressed in concrete form and meet certain standards, such as in the form of artworks, inventions, designs, or brands, which are as follows:
Copyright
Copyright is regulated in Law Number 28 of 2014 on Copyright (Law 28/2014). Article 1 number 1 of Law 28/2014 defines copyright as the exclusive right of the creator that arises automatically based on the declarative principle after a work is realized in a tangible form without reducing the restrictions in accordance with the provisions of laws and regulations.
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A business idea can be protected as copyright if it is a work of knowledge, art, and literature produced by inspiration, ability, thought, imagination, dexterity, skill, or expertise expressed in tangible form (Article 1 point 3 of Law 28/2014).
Brand
Trademarks are regulated in Law Number 20/2016 on Trademarks and Geographical Indications (Law 20/2016) and some of its amendments in Law Number 6/2023 on Job Creation (Law 6/2023). Not just a name or logo, a trademark can also be an arrangement of colors, in the form of 2 dimensions and/or 3 dimensions, sound, holograms, or a combination of all these elements.
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A business idea can be protected through trademark registration if the trademark does not resemble or is the same as another already registered trademark and meets the applicable legal requirements regarding trademarks.
Industrial Design
Industrial design is regulated in Law Number 31 Year 2000 on Industrial Design (Law 31/2000). An Industrial Design is a creation regarding the form of configuration, or composition of lines or colors, or lines and colors, or a combination thereof in the form of three dimensions or two dimensions that give an aesthetic impression and can be realized in a 3 (three) dimensional or 2 (two) dimensional pattern and can be used to produce a product, industrial commodity goods, or handicrafts (Article 1 point 1 of Law 31/2000).
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A business idea can get protection as an industrial design if it has novel characteristics and does not conflict with applicable legal provisions, public order, religion, or decency.
Patents
Patents are regulated in Law No. 13/2016 on Patents (Law 13/2016) and several amendments in Law No. 6/2023 on Job Creation (Law 6/2023). A patent is an exclusive right granted by the state to an inventor for his/her invention in the field of technology for a certain period of time to implement the invention himself/herself or to give approval to other parties to implement it (Article 1 point 1 of Law 13/2016). A business idea has the possibility to obtain patent protection if it meets certain criteria, namely novelty, inventive step, and can be applied in the industry.
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From the above explanation, it can be concluded that ideas are conceptual and abstract. However, a business idea can be the forerunner of something of high value and protected as Intellectual Property if it is expressed in a tangible form and meets the standards such as in the form of creations, inventions, designs, or brands.
KH Contact
KH buddy have your own business idea? Secure it before it becomes someone else’s! Yes, nowadays, many things that contain uniqueness come from ideas or intellectuals from their creators. Well, Intellectual Property Rights are a form of protection for these ideas or innovations.
By registering the idea or innovation, it will provide legal protection and economic benefits for the creator or owner.
To take care of it, just leave it to Kontrak Hukum. As a digital legal platform, we provide the most complete intellectual property registration services as needed, ranging from brands, copyrights, and patents. Guaranteed safe and easy because the registration will be done directly by experienced professional experts and officially registered with the DJKI!
READ ALSO: Take note!
What are you waiting for, let’s register your business idea as intellectual property by visiting the KH Intellectual Property Services page. If you still have questions, KH friends can consult for free at Tanya KH or via direct message (DM) to Instagram @kontrakhukum.
