Indonesia – Changes to Patent Working Requirements

In Indonesia, it is a long-standing requirement that patent owners must work their invention in Indonesia after patent grant. To date, working an invention in Indonesia has been interpreted as either making the patented product or using the patent process in Indonesia within three years of achieving patent grant. Whilst the working requirement could be delayed by a further two years with submission of a written request, giving patent owners up to five years to begin working their invention, any failure could lead to the Indonesian authorities issuing a compulsory licence to the patented technology.

Pleasingly for patent owners, effective from 03 February 2021, the Indonesian government has relaxed the requirements around the working of inventions to stimulate the economy after the COVID-19 pandemic. As such, patent owners will now meet Indonesia’s working requirement if they license or import their patented invention into Indonesia.

Whilst these changes increase the options for patent owners looking to commercialise their inventions in Indonesia, it should also be noted that the opportunity to extend the period for working an invention in Indonesia has been removed. As such, any invention must be worked in Indonesia within three years of patent grant, else the risk of compulsory licencing remains. Additionally, the changes brought in by the Indonesian government provide them with the additional option to revoke any patent where the owner has not complied with the working requirement.