By: Iman Sjahputra, SH, SpN, LL.M

       The development of “franchising” concept is so marvelous in some parts of the world is a very good tool to market the Indonesian products and services trademark widely. The problem is that the national businessman shall be equipped with knowledge of the regulations on the Intellectual Property Rights in the first place, including the franchise regulations of the destination country.

       Even though both countries have rules and regulations on Intellectual Property and ”franchising” but its substances might be different in each country. In this case, the government through its responsible trade agency shall facilitate so that the national businessman will be able to develop their business overseas so that aside from becoming the “domestic champion” they also could become “the global champion”. The “franchise” system was first introduced in America by Singer Sewing Machine Company, the producer of Singer sewing machine, on 1851 where it had many advantages especially in financial, human resources and management matters.

       “Franchising” is very effective to get the product close to its consumer through the hands of the “franchisee”. The question is how about the development of trademark on products and services produced by the Indonesian? We could be proud because shortly Indonesian’s well known trademark will be distributed overseas. This news was published in the recent newspaper which was told by the Chairman of Indonesian Franchise Association.

       As a country which so far was known as an exporter of raw materials, now we could be proud that through the hard works and attempts of the locals, now our businessman be able to produce “made in Indonesia” products and services. From the said ability we could be competitive to reach the overseas benefits which is at the same time it is also one way to add the country’s income.

       We have to admit that actually Indonesia has been producing a lot of trademarks that potentially could “go international”. One of them is proven in the doughnut business. Although this circle shaped cake has been known for a long time ago in Indonesia, but it was never changed due to the lack of innovation. But through “the cold hand” of Johny Andrean which is known as the “boss of salon”, it successfully introduced the new concept of the doughnut. Doughnuts that usually sold in a traditional market, now being sold in a luxury mall with innovative luxury packaging. Therefore the birth of “J.Co Café and Doughnut” has impressed people and finally they fall in love to try the creativity of the local product.

       We should raise our thumbs for the success of newly established “J.Co” shops in relatively short time which is not more than five years as from the establishment which has created a prestige in doughnut world. This surely will be noted in the Indonesian history. We certainly wonder how “J.Co” could be success so fast? The answer is “the innovation and change”. No one would ever think that a traditional plain and simple doughnut could be polished with various kinds of tastes. Indeed it makes the consumers want to try it one by one. It can be said that the success of “J.Co” as a local trademark competes the international trademarks such as “Krispy Cream” and “Dunkin Donuts”.

       “J.Co” trademark is deserved to go international. We surely need the trading representatives who are able to introduce the Indonesian products to compete with the international products. Therefore we hope that the government through the trade department could facilitate and ease the process of the licenses so all the efforts of the local businessman can be succeeded.

Not Always be the Same.

       Of course the Indonesian businessman needs to know that their well known local trademark is not automatically known overseas and that the legal protection towards the trademark differs for each country. For examples are “Indomie”, “Mie Sedap” and “Supermie” trademarks which are known in Indonesia, does it also known internationally? Doesn’t always like that, does it? Therefore it is necessary to know the valid laws of the destined country. In the bamboo curtain country, China, a trademark is deemed to be a famous trademark if it is already famous, well-known and registered in China.

       It is possible that a famous trademark is their origin country such as “Waltmart” trademark in the America is not recognized in China since Chinese people do not know what “Walmart” trademark is. Besides, China also does not differ between “well-known mark and famous mark”. Whereas if the same is reviewed in the context of IPR, both terms are different one to another. ”Well-known mark” refers to a certain territorial famous trademark, while a “famous mark” covers wider areas since it is known and famous internationally. “Coca Cola”, “Mc Donald’s” and “Kentucky Fried Chicken” are famous marks since it is known globally. However to enter into a global market, the said trademarks shall be registered so it can get the legal protection.

       For an example Indonesia use “first to file” registration system which means that a trademark shall be registered before it can get the recognition and legal protection. Without a registration, a trademark is not recognized legally. As a result it could create confusion in case of any conflict in the court arises since there is no proof of a registration of a trade mark. So whether it is possible or not, the products and services trademarks created by Indonesian people be known and become famous internationally? The answer is of course is possible, as long as there is a full support by the government and the necessity to make an effective information line, so that the regulations and laws of the destined countries are known by the Indonesian businessmen at the first place. Therefore please do register your product and service trademarks.

*) Writer is an expert in Intellectual Property Rights (IPR).