In October 2024, the President of Indonesia enacted Law No. 65 of 2024, amending Law No. 13 of 2016 on Patents (“Amended Patent Law”). This pivotal legislation is part of Indonesia’s broader strategy to modernize its intellectual property framework, align with international standards such as the TRIPS Agreement, and foster innovation across key industries.
The Amended Patent Law introduces significant changes, particularly in expanding the scope of patentable subject matter and simplifying administrative processes. These updates aim to address the dynamic needs of innovators and businesses in a rapidly evolving technological landscape.
Key Changes Introduced by the Amended Patent Law
Expanded Scope of Patentability
Previously, Indonesia’s patent regime limited protection to products and processes, creating challenges for innovators in sectors like software and artificial intelligence. The Amended Patent Law addresses this gap by allowing patent protection for:
- Systems
- Methods
- Applications designed to solve specific problems
This change enables innovators to secure patents for usage techniques, algorithms, and other digital-based solutions, diversifying the range of protected intellectual property and fostering innovation in the digital economy.
Patentability of Computer Programs
Computer programs were traditionally excluded from patent protection in Indonesia. However, the Amended Patent Law introduces an exception for inventions implemented by a computer. Under Article 4(d), such inventions must demonstrate:
- Problem-solving capability
- Technical effect
- Technical character
This clarification encourages technological advancements while preserving traditional copyright protections for software that does not meet these patentability criteria.
Extension of the Grace Period
The Grace Period for disclosing an invention has been extended from six months to twelve months. During this time, inventors can:
- Showcase their invention at official exhibitions.
- Use it for experimentation or development.
- Present it in scientific forums without risking its patentability.
This change accommodates inventors’ practical needs, such as securing funding, while aligning with international standards in countries like Japan, Australia, and the United States.
Simplified Patent Administration
The Amended Patent Law introduces measures to streamline the patent process:
- Expedited publication: Inventions can now be published within three months upon request, allowing substantive examination to commence sooner.
- Genetic resources and traditional knowledge: Applicants only need to provide a statement letter confirming the origin of these resources, eliminating the need for complex documentation.
- Annual fee payment: Provisions for postponing annual patent fees have been removed, simplifying fee management for patent holders.
These administrative changes aim to make the patent process more efficient and accessible for applicants.
Implications for Businesses and Innovators
The Amended Patent Law reflects Indonesia’s commitment to fostering a robust intellectual property environment that supports technological advancement. Key benefits include:
- Broader protection: Innovators in emerging fields like AI, software, and biotechnology can now secure more comprehensive patent protection.
- Streamlined processes: Simplified procedures reduce administrative burdens and accelerate innovation.
- Alignment with global standards: Enhanced compatibility with international IP frameworks increases the competitiveness of Indonesian businesses on a global scale.
The 2024 amendments to Indonesia’s Patent Law mark a significant milestone in the country’s intellectual property development. By expanding patentable subject matter, clarifying protections for computer-implemented inventions, and streamlining administrative procedures, the law paves the way for a more innovative and competitive economy.
Businesses, inventors, and legal practitioners should familiarize themselves with these changes to fully leverage the opportunities presented by Indonesia’s updated patent regime.
