Don’t Risk It! 5 Legal Consequences of Unregistered Brands in Indonesia

Don’t Risk It! 5 Legal Consequences of Unregistered Brands in Indonesia

Table of Contents

1. Why Brand Registration is Non-Negotiable
2. Legal Consequence 1: Lawsuits and Infringement Claims
3. Legal Consequence 2: Loss of Exclusive Rights to Your Brand
4. Legal Consequence 3: Revenue Loss to Counterfeiters
5. Legal Consequence 4: Inability to Expand Globally
6. Legal Consequence 5: Costly Rebranding Efforts
7. Case Study: How a Local Café Lost Its Brand to a Competitor
8. 5 Steps to Register Your Brand in Indonesia
9. Common Mistakes to Avoid During Registration
10. How Documenta.id Safeguards Your Brand
11. FAQs About Trademark Registration
12. Final Takeaways to Protect Your Business

1. Why Brand Registration is Non-Negotiable

An unregistered brand is a sitting duck for legal disputes, copycats, and financial losses. In Indonesia, failing to register your trademark under Law No. 20/2016 exposes your business to:

• Lawsuits: Competitors can claim ownership of your brand.
• Counterfeit Sales: Copycats steal your market share.
• Forced Rebranding: Costly and time-consuming.

The Directorate General of Intellectual Property (DGIP) reports 8,000+ trademark disputes annually, with unregistered brands losing 90% of cases.

Alt text: Legal Consequences of Unregistered Brands in Indonesia

2. Legal Consequence 1: Lawsuits and Infringement Claims

If your brand is unregistered, competitors or squatters can:

• Sue for Infringement: Claim you’re using their brand.
• Demand Damages: Courts may award compensation up to IDR 2 billion.
• Block Imports/Exports: Customs can seize goods for suspected infringement.

Example: A Bali-based clothing brand was sued for IDR 1.5 billion after a competitor registered their unmarked logo first.

3. Legal Consequence 2: Loss of Exclusive Rights to Your Brand

Without registration, you can’t:

• Stop Others: Competitors freely use your brand name, logo, or slogan.
• License or Franchise: No legal basis to monetize your brand.
• Sell or Transfer Rights: Unregistered brands hold no market value.

4. Legal Consequence 3: Revenue Loss to Counterfeiters

Copycats thrive on unregistered brands:

• Lost Sales: 30% of consumers accidentally buy counterfeit products.
• Brand Dilution: Poor-quality fakes harm your reputation.
• No Legal Recourse: You can’t sue counterfeiters without a trademark.

Statistic: Counterfeiting costs Indonesian businesses IDR 110 trillion/year (Source: OECD).

5. Legal Consequence 4: Inability to Expand Globally

Unregistered brands face barriers in international markets:

• No Protection Abroad: Trademarks are territorial (e.g., registration in Indonesia doesn’t cover the EU).
• Rejection by Partners: Franchisees or investors demand registered IP.

Solution: Use the Madrid Protocol to register in 130+ countries with one application.

6. Legal Consequence 5: Costly Rebranding Efforts

If someone registers your brand first, you must:

• Rebrand Entirely: New name, logo, packaging, and marketing.
• Lose Customer Trust: Confusion and loyalty erosion.
• Waste Resources: Costs average IDR 500 million for SMEs.

7. Case Study: How a Local Café Lost Its Brand to a Competitor

JavaBrew Café operated for 3 years without trademarking its name. A competitor registered “JavaBrew” and demanded:

• IDR 300 million in damages.
• Immediate rebranding.

Outcome: JavaBrew rebranded as Moonlight Café, losing 40% of its customer base.

8. 5 Steps to Register Your Brand in Indonesia

1. Trademark Search: Use Documenta.id’s Search Tool to check availability.
2. Prepare Documents: Logo, business license (SIUP), and applicant details.
3. Submit to DGIP: File online via the DGIP portal.
4. Respond to Objections: Address any conflicts during the 30-day opposition period.
5. Receive Certificate: Approval takes 8–12 months.

9. Common Mistakes to Avoid During Registration

1. Generic Names: “Jakarta Bakery” is unregistrable; opt for unique names like “JakartaDelight.”
2. Ignoring Classes: Register under relevant Nice Classes (e.g., Class 30 for baked goods).
3. Late Renewals: Trademarks expire after 10 years; renew promptly.
4. DIY Applications: 70% of DIY filings face rejections due to errors.

10. How Documenta.id Safeguards Your Brand

Documenta.id offers end-to-end trademark solutions:

• Trademark Search & Filing: Avoid conflicts and streamline registration.
• Global Protection: Madrid Protocol filings for international markets.
• Monitoring & Enforcement: Detect counterfeits and issue takedowns.

 Secure Your Brand Today—Start Here

11. FAQs About Trademark Registration

Q1: How long does trademark registration take in Indonesia?
A: 8–12 months via DGIP.

Q2: Can I trademark a slogan?
A: Yes! Slogans like Nike’s “Just Do It” are protected.

Q3: What if my trademark application is rejected?
A: Documenta.id’s lawyers help amend and resubmit applications.

12. Final Takeaways to Protect Your Business

• Register your trademark early to avoid legal battles.
• Monitor for counterfeits and enforce your rights.
• Partner with Documenta.id for hassle-free registration and global protection.

Need Help?
 +62 851-8322-7997 (DISA) |  halo@documenta.id