Open access peer-reviewed chapter

The Utilization of the Economic Value of Geographic Indications as a Communal Right in Increasing Community Welfare (In the Perspective of Indonesian Trademark Law and Geographical Indications)

Written By

Sentosa Sembiring

Submitted: 18 December 2022 Reviewed: 18 January 2023 Published: 22 March 2023

DOI: 10.5772/intechopen.1001126

From the Edited Volume

Intellectual Property - Global Perspective Advances and Challenges

Appavoo Umamaheswari and Sakthivel Lakshmana Prabu

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Abstract

This paper attempts to analyze the benefits gained by the community by including Geographical Indications as one of the scopes of Intellectual Property Rights. Observing the nature contained in Geographical Indications as a material right, it is appropriate for the community that produces Geographical Indications to benefit economically. This is an opportunity and at the same time a challenge for stakeholders in disseminating Geographical Indications whose existence has its own characteristics, when compared to other types of Intellectual Property Rights. To implement what is described in the TRIPs Agreement, the Government of the Republic of Indonesia issued Law Number 20 of 2016 concerning Marks and Geographical Indications. With the issuance of this law, the existence of Geographical Indications as a part of getting legal certainty as a communal right. To obtain communal rights as exclusive rights to Geographical Indications, communities are required to register with the Directorate General of Intellectual Property, Ministry of Law and Human Rights of the Republic of Indonesia. For community groups that have registered Geographical Indications, a Geographical Indication certificate will be issued. By having a legal certificate, Geographical Indications get legal protection.

Keywords

  • geographical indications
  • communal rights
  • registration and well-being
  • community welfare
  • intellectual property rights

1. Introduction

For some people, the term Geographical Indication is not something new in their lives, why? Because the results of the production of Geographical Indications are not only used to meet the needs of daily life but have also been used as objects of trade. When it is intended to be used as a trading object, the Geographical Indications that are produced require a sign that is associated with the uniqueness of that area. In short, manufactured goods known as Geographical Indications only exist in that area. To distinguish it from similar goods, it is necessary to give a trade name by the manufacturer.

However, for some people it may be that discussing Geographical Indications is something foreign to them. However, along with the development of science and technology, relations between countries are increasingly open, especially with the establishment of the World Trade Organization in 1994, in one of the attachments to the agreement establishing the World Trade Organization, it is regulated Trade Related Aspects of Intellectual Property Rights (TRIPs). The terminology of Geographical Indications as part of Intellectual Property Rights is increasingly recognized by various groups of people. Therefore, it is reasonable for the opinion put forward Trias Palupi Kurnianingrum:

“TRIPs are considered an important milestone in efforts to liberalize international trade, therefore the protection of geographical indications is one of the central topics to be accommodated in the provisions of TRIPs.” [1].

Observing the existence of Geographical Indications which have increasingly existed since the signing of the TRIPs, from a business perspective, Geographical Indications have quite high economic value and need to be regulated in laws and regulations. The purpose of this arrangement is to provide protection to the area of origin that produces goods which have their own characteristics according to the geographical conditions of the goods produced or produced. As stated Ranitya Ganindha and Sukarmi:

“It is necessary to realize that talking about Geographical Indications is not merely looking at the context IPR, but more than that Geographical Indications are very closely related to the cultural roots of society. Respect for historical value needs to be maintained. The character that shows the element of ownership is of collective or communal value. Geographical indications have the potential to guarantee that economic benefits can be felt from a product by producers from various regions of origin of the product.” [2].

It is possible that when the delegation leaders present at the formation of the World Trade Organization realized the importance of regulating Geographical Indications as one of the scopes of Intellectual Property Rights (IPR), they agreed to regulate Geographical Indications in separate laws and regulations. This can be seen from the formulation contained in Article 22 paragraph (2) point (a) Agreement TRIPs:

“In respect of geographical indications, Members shall provide the legal means for interested parties to prevent the use of any means in the designation or presentation of a good that indicates or suggests that the good in question originates in a geographical area other than the true place of origin in a manner which misleads the public as to the geographical origin of the good”.

Indonesia as one of the countries that signed the agreement to establish the World Trade Organization (WTO), ratified the agreement with the Law of the Republic of Indonesia Number 7 of 1994 concerning Ratification of the Agreement Establishing the World Trade Organization (UU No.7/1994). As a follow-up to the issuance of law No.7/1994, the Government of Indonesia issued a series of laws and regulations in the field of Intellectual Property Rights. As is well known, the scope of the IPR study field is quite broad. Precisely in part II of TRIPs it is explained that the scope of IPR includes:

  1. Copyright and related rights;

  2. Trademarks;

  3. Geographical indications;

  4. Industrial designs;

  5. Patents (patents);

  6. Layout-designs of Integrated Circuits; and.

  7. Protection of trade secrets (protection of undisclosed information).

In connection with the regulation of Marks and Geographical Indications, the Government of Indonesia initially issued the Law of the Republic of Indonesia Number 15 of 2001 concerning Marks. In this law the regulation regarding Geographical Indications (GI) is quite short. Meanwhile, the development of Geographical Indications at the global level is growing quite rapidly. Considering the economic value contained in Geographical Indications is quite important not only for national interests, but also can cross between countries as objects of trade, the Government of Indonesia renewed the regulation regarding Geographical Indications by issuing Law Number 20 of 2016 Concerning Trademarks and Geographical Indications (hereinafter referred to as Law No. 20/2016). Regulations regarding GI are regulated in Articles 53-71. More detailed arrangements regarding Geographical Indications are described in Government Regulations and Regulations of the Minister of Law and Human Rights of the Republic of Indonesia.

With the issuance of Law No. 20/2016, the existence of Geographical Indications is increasingly getting legal certainty. This is felt to be important, because judging from the existing potential, Indonesia as an archipelagic country, is rich in natural and biological resources. The large amount of potential that is owned by the area that produces Geographical Indications also comes from the fact that the community as a community that produces Geographical Indications benefits from the production of the Geographical Indications produced. The problem is whether the automatically generated Geographical Indications will receive legal protection, so that the public can automatically enjoy the results of using Geographical Indications as objects of trade transactions both nationally and across national borders? Or are there requirements that must be met to obtain the protection of Geographical Indications so that the public can enjoy the results of the Geographical Indications produced or produced in their area? It seems that this is where the problem lies, not all people are necessarily aware that goods produced from regions that have a unique geography can produce a product that has economic values that can prosper if it is managed properly by the community and/or government agencies that have public authority granted by state legislation.

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2. Geographical indications as part of intellectual property rights

2.1 Background

The question may arise what is meant by Geographical Indications? Providing a definition or definition of Geographical Indications is not an easy job, why? Because discussing Geographical Indications there are relations that cannot be simply separated, namely those related to culture and traditional knowledge. On the other hand, Geographical Indications are also very close to Marks. For this reason, if one pays attention to the various intellectual property rights literature, even experts seem to have difficulty making an understanding that can be accepted by all parties. As stated by Miranda Risang Ayu:

“the definition of Geographical Indications is still quite varied, both in terms of definition and scope of protection. There is difficulty in making a definition, because Geographical Indications are influenced by the values of society and/or the nation of a country.” [3].

Referring to the opinion expressed by the Intellectual Property Rights expert above, it is better to first understand the nature contained in the Geographical Indication itself. Looking at the legal literature that discusses this matter, experts explain that the concept of Geographical Indication cannot be separated from what is called an Indication of Origin. The concept of an indication of origin is essentially the right of the public to use a mark on a product which is generally made in the agricultural sector due to special features or special characteristics of the geographical environment where the said product material is produced. Therefore, when viewed from a cultural perspective, it is necessary to build a bridge first. The need for this bridge according to Basuki Antariksa:

“to maintain a balance between the interests of community groups based on the concept of collectivism and the legal protection of Intellectual Property Rights based on the understanding of individualism. As is known, the legal regime of Geographical Indications can provide protection for a product produced by a community in a certain geographical area, such as Champagne wine, which was made by a community in the region with the same name in France since the 17th century.” (Basuki [4]).

It is worth contemplating what the experts above have said, because with an increasingly open market for trading products based on regions that have specificity in producing production, it is quite reasonable for Geographical Indications to be given legal protection, bearing in mind that Geographical Indications are property rights that have value economy. Indonesia as an archipelagic country certainly has a variety of cultures and products based on regions that have unique products that are known and have a place in the international market. In business has a high economic value. In an atmosphere like this, bad intentions from people who want to get instant profits can happen. For this reason, legal protection of Geographical Indications is one thing that must be done, as stated Muh. Ali Masnun:

“to protect and avoid misuse of Geographical Indications from people who want to benefit without regard to product quality, it is felt that it necessary to follow legal protection to be able to protect these commodities from unfair competitive practices in trade in the era of today the boundaries between countries are increasingly borderless.” [5].

2.2 Legal basis for regulating geographic indications

How is the implementation of communal rights in Indonesia? In this context it is interesting to pay attention to what is described in the 1945 Constitution of the Republic of Indonesia (1945 Constitution) which states as follows:

“The state recognizes and respects customary law community units along with their traditional rights as long as they are still alive and in accordance with the development of society and the principles of the Unitary State of the Republic of Indonesia, which are regulated in law.”1

It can be seen that in accordance with the constitution, the State recognizes traditional rights with a broader understanding such as cultural rights, customs, tangible and intangible movable objects. It’s just that, in Indonesia, the arrangements regarding community communal rights are still not specific. Arrangements are still scattered in various laws and regulations related to Intellectual Property Rights, including in the Law on Trademarks and Geographical Indications [6]. The notion of Geographical Indications is normatively explained in Law No. 20/2016 as follows:

“Geographical indication is a sign indicating the area of origin of goods and/or products which due to geographical environmental factors including natural factors, human factors or a combination of the two factors give reputation, quality and certain characteristics to the goods and/or products produced.”2

From the definition of Geographical Indications as described above, there is one thing that needs to be stated here, namely a Geographical Indication is a sign attached to the goods being traded. This sign is used as a trademark. As explained by expert and practitioner of Intellectual Property Rights Suyud Margono:

“Sometimes a business person wants to introduce a brand or use a place or geographical name to explain where the goods/services come from. Trademark Law regulates Geographical Indications that use the name of the geographical location of the goods.” [7].

Goods traded have distinctive characteristics. The peculiarities or characteristics of the goods are due to geographical factors. In an environment like this, so that goods produced and of course used as objects of business transactions are not imitated or falsified by other people, it is necessary to provide legal protection for these Geographical Indications. The purpose of providing protection is to protect an item as a sign of the area of origin of an item due to several unique factors that are only owned by certain areas. This factor can be caused by natural conditions, humans, or a combination of the two with certain quality characteristics of the goods produced. Meanwhile, what is meant by internal geographical protection is Mark protection based on Geographical Indications.

It is necessary to state here that what is meant by a Mark according to Law No. 20/2016 is a sign that can be displayed graphically in the form of an image, logo, name, word, letter, number, color arrangement, in the form of 2 (two) dimensions and/or 3 (three) dimensions, sound, hologram, or a combination of 2 (two) or more of these elements to distinguish goods and/or services produced by persons or legal entities in the activities of trading in goods and/or services.3 What is described in these provisions, it can be seen that the Mark is a sign to distinguish it from similar goods that are produced or traded by the brand holder.

2.3 Legal protection

Further provisions regarding how to provide similar goods in differentiating goods like Geographical Indication products, are further elaborated in the Regulation of the Minister of Law and Human Rights of the Republic of Indonesia Number 10 of 2022 concerning Amendments to the Regulation of the Minister of Law and Human Rights Number 12 of 2019 concerning Indications Geographical. This Ministerial Regulation explains the logo and code of origin. The meaning of the Indonesian Geographical Indication Logo is a symbol or symbol consisting of images and writing which is the official identity of a geographical indication product that has been registered and has received a certificate of geographical indication from the Directorate General of Intellectual Property, Ministry of Law and Human Rights.4 Whereas what is meant by the Code of Origin for Indonesian Geographical Indication Products is a sign in the form of letters or numbers that identify the origin of a geographical indication product that has been registered and obtained a certificate of geographical indication from the Directorate General of Intellectual Property, Ministry of Law and Human Rights.5

If this is related to Geographical Indications, the holder of the Geographical Indication is granted exclusive rights to the marks used in producing or trading the Geographical Indications. This is confirmed in Law No. 20/2016: The right to Geographical Indications is an exclusive right granted by the state to the right holders of registered Geographical Indications, as long as the reputation, quality, and characteristics that serve as the basis for providing protection for such Geographical Indications still exist.6 There is one thing that needs to be considered in order to obtain exclusive rights to Geographical Indications, namely the obligation to register Geographical Indications with the Minister. As for what is meant by the Minister in this case is the minister who organizes government affairs in the field of law. In the government system in Indonesia it is organized by the Ministry of Law and Human Rights of the Republic of Indonesia.7

Paying attention to the existence of Geographical Indications in this decade has become one of the objects of business transactions not only on a national scale but has crossed countries, for this reason, business actors and consumers feel it is very important to be given legal protection. Manufacturers certainly do not want goods originating from their blood to be counterfeited by other people. Illegal use like this can damage the image of the producer. Geographical Indication For consumers, as the end user of a product, it is enough to feel doubtful about the low quality of the goods purchased because they are not produced according to actual quality.

Starting from this idea in the Intellectual Property Rights literature, experts explain why Geographical Indications need to get legal protection, namely: first, Geographical Indications refer to the identification of the origin of the product. Second, Geographical Indications can inform consumers that the goods being traded originate from areas that provide quality, reputation, and/or characteristics of the area concerned, both geographically and in natural resources. Third, Geographical Indications can represent business interests because they guarantee the authenticity of an item with characteristics from a certain area [8].

Therefore, it is not an exaggeration if there are those who are of the view that the existence of Geographical Indications which have their own characteristics, in terms of the aspect of international trade, the use of a geographical name as a guide or indication of where an item originates has a comparative advantage capable of increasing competitiveness of the commodity in question [9].

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3. Geographical indications as communal rights

3.1 Existence of geographical indications

The struggle carried out by various countries to include Geographical Indications as one of the objects of study in the field of Intellectual Property Rights is not in vain. This can be seen in the provisions of TRIPs that have included Geographical Indications as one of the scopes of Intellectual Property Rights. This struggle is certainly understandable, because seen from the context of trade, Geographical Indications are trade objects that have the potential to increase transaction objects. If viewed in the context of a state, it is possible that Geographical Indications can be used as a commodity in the import-export trade which of course can generate foreign exchange. On the other hand, when viewed from the location where it is produced or the production of Geographical Indications, Geographical Indications are referred to as communal rights. This means that the public as holders of exclusive rights will benefit from the legal protection given to Geographical Indications.

As can be seen from the various opinions expressed by experts, the exclusive rights of Geographical Indications granted by the state to applicants who have been registered with the Director General of Intellectual Property Rights of the Ministry of Law and Human Rights of the Republic of Indonesia, are not individual rights but community rights.

Figure 1 describes the steps and process for registration application.8

Figure 1.

Procedure for Registration of Geographical Indications at the Directorate General of Intellectual Property Rights, Ministry of Law and Human Rights of the Republic of Indonesia.

The emergence of the concept of community rights cannot be separated from the party having the authority to apply for the registration of Geographical Indications is a community organization. The appointment of a representative agency to apply for registration is a combination of all the elements involved in a geographical indication protection. This is certainly in line with the principle of protecting Intellectual Property Rights, namely the principle of social justice, that the granting of rights by law should not be solely to fulfill individual interests but for the benefit of society. As stated by Yeti Sumiyati; Tatty Aryani Ramli and Rusli Iskandar:

“when the utilization of economic rights from geographic indications is used both by the community and outside the community, it will become the right of all elements of the community. The benefits of economic rights can be enjoyed equally by all components of society. This is certainly understandable, because to produce a Geographical Indication product, it is not done by one person but is a collective work, so that producers can strengthen relations between other producers and can also increase the dynamics of rural areas which in turn can increase income. The community in the area where the Geographical Indication is produced” [10].

What was stated by the Intellectual Property Rights research team above is understandable. The existence of Geographical Indication products does automatically gives a reputation to an area, and this will have an impact on the development of agro-tourism areas, with Geographical Indications it will also stimulate the emergence of other related activities such as further processing of a product. All economic activities because of the Geographical Indications, automatically contribute to the economic growth of the Protected Geographical Indications area itself. As stated Desty Anggie Mustika:

“Legal protection of Geographical Indications can increase the value of the product to a high level. Granting recognition to Geographical Indications, either indirectly or indirectly, can stimulate the economy of the area of origin of the Geographical Indication products and more importantly, Geographical Indications are addressed to the producer, not to the creator. In this context the concept of Geographical Indications is referred to as communal protection.” [11].

The above, supports the idea that Geographical Indications as Intellectual Property Rights are communal in nature. When compared to other types of Intellectual Property Rights, Geographical Indications have their own characteristics. According to Idris, an expert and official at the Director General of Intellectual Property Rights of the Ministry of Law and Human Rights:

“As for the characteristics of a communal Geographical Indication, it can be seen that the rights attached to GI are basically: first, the rights of the local community or customary community; secondly, shared or communal property so that it can be shared with community members and third, compiled, guarded and maintained by tradition in a sustainable manner.” [12].

In relation to communal rights, it is interesting to examine the requirements for registering Geographical Indications with the Director General of Intellectual Property Rights. Unlike the case with other types of Intellectual Property Rights, registration is carried out individually by the owner or holder of Intellectual Property Rights. What about the registration of Geographical Indications? In Law No. 20/2016 it is implicitly stated that to apply for registration of Geographical Indications must be submitted by a community group. This shows that legislators have realized that Geographical Indications have their own characteristics. For this reason, it is quite reasonable why community groups should apply for geographic indication rights, because if it is possible for individuals to do so, you can imagine the legal consequences that may arise, individuals are given exclusive rights, in the end the community gets nothing and it could even be that the community is prohibited from producing, trading Geographical Indications without permission from the exclusive rights holder of Geographical Indications.

Meanwhile, community groups that are authorized to apply for registration of Geographical Indications to the Director General of Intellectual Property Rights are explained in Government Regulation No. 51 of 2007 concerning Geographical Indications (GR No. 51/2007). Applicants for Geographical Indications consist of:

  1. an institution that represents the community in the area that produces the goods in question, consisting of:

    1. parties who cultivate natural products or natural resources;

    2. producers of agricultural products;

    3. manufacturers of handicraft products or industrial products; or.

    4. traders who sell the goods;

  1. institution that is authorized to do so; or.

  2. group of consumers of the goods.9

From the criteria described in the provisions above, it further strengthens the idea of Geographical Indications as communal rights. What the public needs to realize is that to obtain legal recognition for products based on Geographical Indications, a legal action is required, namely the obligation to register Geographical Indications at the Office of the Director General of Intellectual Property Rights. The requirements and procedures for registering Geographical Indications are further elaborated in the Regulation of the Minister of Law and Human Rights of the Republic of Indonesia Number 12 of 2019 concerning Geographical Indications which has been updated with the Regulation of the Minister of Law and Human Rights of the Republic of Indonesia Number 10 of 2022 concerning Amendments. On Regulation of the Minister of Law and Human Rights Number 12 of 2019 Concerning Geographical Indications (hereinafter referred to as Permenhukham RI No. 10/2022). In Article 3 of RI Minister of Law and Human Rights No. 10/2022 stated:

(1) In order to obtain the protection referred to in Article 2, the applicant must apply to the Minister.

(1a) The applicant as referred to in paragraph (1) is:

  1. an institution that represents the community in a certain geographical area that operates goods and/or products in the form of:

    1. natural resources;

    2. handicrafts; or.

    3. industrial products; and.

  2. provincial or district/city regional government.

One thing that is interesting from the provisions above is that the government, either the provincial government or the district/city government, may act as an applicant in registering Geographical Indications. This should be welcomed, as stated Balqis Siagian; Saidin; Suhaidi and Sunarmi:

“The role of the government can be the best solution to speed up the registration of Geographical Indices in the regions. With the intervention of the government, the people in locations where products based on Geographical Indications feel cared for develop the potential that exists in the area.” [13].

On the other hand, the public also needs to be given an understanding of what a Geographical Indices is. For this reason, through education and socialization programs regarding the meaning of Intellectual Property Rights in general and Geographical Indications in particular, it is hoped that the public can become actors and at the same time as guardians and maintainers, guardians of product quality, so that the continuity of Geographical Indication products that have been and will be registered by the government will remain can be well maintained. If this is fulfilled, then the characteristics of Geographical Indications which are the main requirements for providing legal protection for Geographical Indications can always be fulfilled in accordance with what is required in the laws and regulations on Geographical Indications.

The characteristics of Geographical Indications are also explained in the Government Regulation of the Republic of Indonesia Number 51 of 2007 concerning Geographical Indications (GR No. 51/200). In this PP it is stated: Geographical Indications are protected if the distinctive characteristics and qualities which form the basis for the protection of said Geographical Indications still exist.10

From this provision, the right to Geographical Indications can basically be used continuously by the holder of Geographical Indications if the quality of the Geographical Indications can be maintained as a basis for considering the protection of Geographical Indications. Therefore, it is quite reasonable, the registrant of Geographical Indications is given exclusive rights. This is confirmed in the Regulation of the Minister of Law and Human Rights of the Republic of Indonesia Number 12 of 2019 concerning Geographical Indications, the Right to Geographical Indications is an exclusive right granted by the state to registered Geographical Indication rights holders, if reputation, quality, and characteristics form the basis the granting of protection for the Geographical Indication still exists.11

If so, what are the benefits of registering Geographical Indications? By registering, Geographical Indications receive legal protection. The purpose of providing legal protection is inseparable from the existence of Geographical Indications as part of collective Intellectual Property Rights. Hence, legal protection of Geographical Indications requires the cooperation of all parties. Legal protection and potential development of Geographical Indication products are a means for local governments and other stakeholders to create local economic strength. The protection of Geographical Indications is not only beneficial for environmental sustainability, but also for the development of natural and human resources in the locality.

Efforts to obtain legal protection require the cooperation and proactivity of all parties, as stated by Ranitya Ganindha and Sukarmi:

“Protection of Geographical Indications requires proactive efforts from interested parties, starting from registration to maintaining the quality of Geographical Indications. Another important thing from Geographical Indications is the consistency of a product with the name of a region.”12

Therefore, it is also reasonable why Geographical Indication products being marketed must include a logo. More on this matter is described in the Regulation of the Minister of Law and Human Rights of the Republic of Indonesia Number 10 of 2022. It was further stated, every Geographical Indication product packaging must include the certificate number and the Code of Origin of Indonesian Geographical Indication Products.13 Referring to the provisions above, the registration of Geographical Indications is very important for trading Geographical Indications. According to Idris, the benefits that can be obtained from the protection of Geographical Indications are:

“firstly, to protect well-known product names from misuse and counterfeiting; secondly, to encourage rural-regional development and thirdly to assist consumers by providing them with information about the specific characteristics of the products produced or marketed.”14

If this is related to economic development, both on a local and national scale with the protection of Geographical Indications, at the implementation level it is not merely the result of economic value that is the goal. But also, the process must be in accordance with Regional Government policies in realizing regional original income and of course also in the context of improving people’s welfare. Therefore, all parties must maintain the consistency and quality of Geographical Indications, as stated by Teng Berlianty and Yosia Hetharie:

“Stakeholders related to the management of Geographical Indications need to play an active role based on the principles of modern management but still use local sources because it is carried out by regions that produce Geographical Indications.” [14].

3.2 Geographical indications as objects of trade transactions

What has been stated by the authors above, regarding the importance of the active role of all parties involved in maintaining and maintaining the quality of Geographical Indications, is very reasonable, because Geographical Indications are a national economic potential that can become superior commodities, both in national and international trade. Therefore, the various steps that have been taken in providing legal protection both normatively and empirically are time to be carried out. This step is important to follow up, because other parties, both foreign and national, have very open opportunities to take advantage of its Geographical Indications for business purposes, the impact of which can be detrimental to the community producing the Geographical Indications themselves.

Seeing the vast potential of natural resources, it is very possible for those who want to take advantage of the opportunity for their own benefit. It is in this case that various loopholes that may be exploited by other people need to be prevented by providing legal protection to the producer of the Geographical Indications. Experts and parties concerned with the existence of Geographical Indications have provided various recommendations, among others, Candra Irawan said:

“In this decade, the trade that is being developed relies on science. As a result, geographical indications that have not been registered will become the target of economic actors and have the potential to be used individually, and this will harm the interests of the people who have been making and trading these products. For this reason, the government, both the central government and regional governments, must immediately seek registration of geographical indications that have the economic potential to be commercialized, provide legal protection, and utilize them for the benefit of society.” [15].

What was stated by the experts above shows that to provide protection to Geographical Indications, it is important to register Geographical Indications. For this, it is necessary to pay special attention to local governments. As described elsewhere in this paper, each region in Indonesia has its own unique types of food and agricultural products. Unlike the other areas. If this is managed properly, economically it can generate a source of income for the area concerned. As stated by Devica Rully Masrur:

“The sharing of regional superior products has an important meaning for the progress of the regional economy, especially for the sake of increasing the welfare of the local community. Therefore, the existence of superior products that have specific unique values such as location needs to be preserved. Maintaining the existence of regional superior products that have a unique taste, distinctive shape, of course, requires strong efforts to protect them. This is where the importance of protecting Geographical Indications for a regional superior product, which according to law can be protected by registering it.” [16].

By registering, legally the registrant will get exclusive rights. If you already have exclusive rights, this means that Geographical Indications can be produced, traded and licensed to other parties. From the sale of production and or royalties, the people in the location where the Geographical Indications are produced benefit, so that ideally, they can prosper.

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4. Conclusion

Geographical indications as one of the scopes of Intellectual Property Rights have their own characteristics when compared to other types of Intellectual Property Rights. There are distinct characteristics of the Geographical Indications, which may be due to geographical factors or the local environment and culture. Therefore, it is reasonable that what is produced from the area concerned is also different from other regions. What is produced in this case, can be in the form of agricultural products, handicrafts that have their own uniqueness.

For the product or production of geographical indications for the area concerned to receive legal protection, in accordance with the provisions stipulated in Law Number 20 of 2016 concerning Marks and Geographical Indications, Geographical Indications must be registered. The parties authorized to apply for registration according to this law are community groups and local governments. If all the requirements for registering Geographical Indications have been met, the applicant for registration of Geographical Indications will be given a registration certificate. With a registration certificate, the certificate holder whose name is included in the certificate has exclusive rights. This means that the registrant has the right to produce, reproduce, trade and license Geographical Indications.

By producing and selling, it means that the holder of exclusive rights, in this case the community, ideally can also enjoy the results or economic value of Geographical Indications. By obtaining economic value from Geographical Indications, conceptually the community will become prosperous, because basically the exclusive rights of Geographical Indications belong to the community.

References

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Notes

  • See Article 18B of the 1945 Constitution of the Republic of Indonesia.
  • See Article 1 point 6 of Law Number 20 of 2016 Marks and Geographical Indications.
  • See Article 1 point 1 of Law Number 20 of 2016 Marks and Geographical Indications.
  • See Article 1 point 14 Regulation of the Minister of Law and Human Rights of the Republic of Indonesia Number 10 of 2022.
  • See Article 1 point 14 Regulation of the Minister of Law and Human Rights of the Republic of Indonesia Number 10 of 2022.
  • See article 1 point see Article 1 point 7 Regulation of the Minister of Law and Human Rights of the Republic of Indonesia Number 10 of 2022.
  • See Article 1 point 20 of Law Number 20 of 2016 Marks and Geographical Indications.
  • Taken from the official website of the Indonesian Directorate General of Intellectual Property Right, https://dgip.go.id/menu-utama/indikasi-geografis/syarat-prosedur
  • See Article 5 paragraph 3 GR No 51/2007.
  • See Article 4 GR No 51/200
  • See Article 1 point 2 of the RI Minister of Law and Human Rights No 12/2019
  • Ranitya Ganindha and Sukarmi. supra.
  • See Article 37A the Regulation of the Minister of Law and Human Rights of the Republic of Indonesia No 10/2022.
  • Idris. Op.cit.

Written By

Sentosa Sembiring

Submitted: 18 December 2022 Reviewed: 18 January 2023 Published: 22 March 2023