Knowledge

How the Patent Renewal System (Annuity) Works in Indonesia?

In Indonesia, a patent renewal fee (also called a maintenance fee or annuity) is required to keep a granted patent in force for its full duration of 20 years. Here's a more detailed breakdown of how the patent renewal system (annuity) works in Indonesia:

Key Points about Patent Renewal Fees in Indonesia:

  1. Payment Schedule:

    • First Payment: The first renewal fee must be paid by the 3rd anniversary of the patent’s grant date.

    • Subsequent Payments: After the initial payment, the renewal fee must be paid annually starting from the 3rd year and continuing until the 20th year.

  2. Grace Period:

    • There is typically a 6-month grace period after the due date for the renewal fee. However, a late fee is imposed during the grace period.

    • If the fee is not paid during the grace period, the patent will lapse (expire), and its protection will no longer be valid.

  3. Fee Structure:

    • The amount of the renewal fee increases as the patent ages. The fees are generally lower in the early years and increase progressively after the 3rd year.

    • Early years: The renewal fees are relatively low (3rd to 5th years).

    • Later years: The renewal fees increase progressively from the 6th year onward, with higher fees due in the later years (e.g., 16th to 20th years).

  4. Total Duration:

    • The patent is maintained as long as the renewal fees are paid on time, up to a maximum duration of 20 years from the grant date. After the 20th year, the patent rights expire, and no further renewal fees are required.

Example of Fee Payment Schedule:

  • 3rd Year: Renewal fee due (initial payment)

  • 4th Year: Annual renewal fee due

  • 5th Year: Annual renewal fee due

  • 6th to 10th Years: Higher fees due annually

  • 11th to 15th Years: Fees continue to increase

  • 16th to 20th Years: Highest fees due in the final years

Late Payments and Consequences:

  • Late Payment: If the renewal fee is not paid by the due date, you have a 6-month grace period to make the payment, but with an additional late fee.

  • Patent Lapse: If the renewal fee is not paid within the grace period, the patent will lapse, and the patent owner will lose exclusive rights over the invention.

Renewal Fee Amounts:

The exact amounts of the renewal fees can vary from year to year and are subject to updates from the Directorate General of Intellectual Property (DGIP) in Indonesia. Generally, the fees increase as the patent ages, so the earlier years are cheaper than the later years. It is advisable to consult an Indonesian Patent Attorney for the most current fee schedule.

Conclusion:

To keep a patent in force for its full 20-year duration in Indonesia, renewal fees must be paid annually starting from the 3rd year of the patent’s grant date. The fees progressively increase over time, and failure to pay the required fees will result in the patent expiring.

This article is for informational purposes only and does not constitute legal advice. If you require legal assistance, please feel free to reach out to damar.dwipo@dlplawoffices.com