Insights
To boost foreign investment, Indonesia plans to pass a new commercial law named Omnibus Law.
On 12th of February 2020, the Government filed the Omnibus Bill on Job Creation with the final draft bill consisting of 79 laws, 15 chapters and 174 articles.
One of the most significant part of the bill for Intellectual Property Right is the fate of Article 20 of Patent Law No. 13 of 2016. Article 20 obliges Patent holders to manufacture the product or use the process in Indonesia within 3 years of grant date, failing which there is a risk of compulsory license or cancellation of patent.
As per the latest updates received on the final draft, Article 20 of the patent law is now regulated under Chapter VI on Ease of doing Business.
Part 3 on Patents, Article 110 states: "Provisions in Article 20 of Law Number 13 Year 2016 concerning Patents (State Gazette of the Republic of Indonesia Year 2016 Number 176, Supplement to State Gazette of the Republic of Indonesia Number 5922) is deleted".
The complete draft of the bill will be discussed by the parliament and it may take some time before the final bill is passed. Nevertheless, the suggested removal of Article 20 is a positive sign for patent holders.
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