Circular Letter from the Directorate General of Intellectual Property (DGIP) on Annuity Payment System

The DGIP issued a circular letter dated 30 September 2016 on the transition period of annuity payment system under Law No. 13 of 2016 regarding Patent (“New Patent Law”) which was enacted on 26 August 2016 (“Enactment Date”)

Under the New Patent Law, patent annuity payments must be made at the outset of the protection period, where previously they were due at the end of the protection period. In addition, the due date of the annuity fee will be based on the filing date instead of the granted date which may, in some cases, make the due date for annuity payments earlier.

As a supplement, the Circular explains as follows:

• The Circular differentiates unpaid patent annuities according to where the due date falls in relation to the Enactment Date. Unpaid patent annuities which are due prior to the Enactment Date are governed by Law No. 14 2001 regarding Patent (“Old Patent Law”) whereas unpaid patent annuities which are due after the Enactment Date are governed by the New Patent Law.
• Furthermore, the Circular clarifies that unpaid patent annuities due between the period of August 26, 2016 and December 30, 2016 must be paid according to the New Patent Law and prior to December 30, 2016 in order to enjoy continued patent protection.

The DGIP will delete any and all patents with outstanding annuities after 30 December 2016. We strongly urge all patent holders in Indonesia to verify and confirm their annuity payments to ensure the continuation of their patent past 30 December 2016.

If you have any questions on the content of this IP Alert or wish to discuss anything about this matter in further detail, please feel free to contact: Endra A. Prabawa  (Partner) or Ajeng Yesie Triewanty (Senior Associate).

This alert is for general information only and is not a substitute for legal advice.