In August 2008, the Indonesian government has issued a Ministerial Regulation No. 31 Year 2008 on the Undertaking of Franchise. This Ministerial Regulation is intended to replace the previous Ministerial Regulation, the Ministerial Regulation No. 12 of 2006.
Ministerial Regulation No. 31 prescribes several points that have not been previously regulated, among others on the registration of Intellectual Property Rights (IPR) such as logos, marks, industrial designs and patents.
Pursuant to Article 2 paragraph (1) jo. Article 5 paragraph (1) of the Ministerial Regulation No. 31, a Franchise Agreement shall at the minimum contain several points including Intellectual Property Rights (IPR) that have been registered. In this regards the government requires that any IPR related to the franchise business in concern must first be registered with the Directorate General of Intellectual Property Rights. Evidence of registration of the IPR shall be attached to the Franchise Agreement.
How if a Franchise Agreement has not attached any evidence of registration of the IPR related to the business being franchised?
Registration of the IPR related to the business being franchised can be carried out at the Directorate General of IPR through experienced consultants, in accordance with the IPR classification and the business activities. Experiences and strategies in the registration of IPR are a must in order to mitigate any potential problems that may harm either the Franchisee or the Franchisor in future.
Some adjustment in the Franchise Agreement to attach evidence of registration of the IPR should meet the conditions required under the Ministerial Regulation No. 31.
Said, Sudiro & Partners
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Jakarta 12930 Indonesia
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