Legislative Implementation of Flexibilities - Indonesia

Title:	Articles 99 to 103 of the Patents Law No. 14 of 01/08/2001 and Articles 2, 3 and 4 of the Government Regulation No. 27 of 2004 regarding the Procedure of Exploitation of Patent by the Government
Field of IP:	Patents
Type of flexibility:	Security exceptions
Summary table:

Provisions of Law

Article 99

If the Government is of the opinion that a Patent in Indonesia is very important for the conduct of defense and security of the State and for an urgent need for the sake of public interest, the Government may itself exploit the relevant Patent.

The decision to self-exploit a Patent shall be regulated by Presidential Decree after hearing the consideration from the Minister and from the minister or head of the agencies responsible in the relevant field.

Article 100

The provisions of Article 99 shall apply mutatis mutandis to any Invention for which a Patent has been requested but which has not been announced as referred to in Article 46.

Where the Government does not or has not yet intended to self-exploit a Patent as referred to in paragraph (1), the exploitation of such a Patent may only be undertaken with an approval from the Government.

The Patent Holder as referred to in paragraph (2) shall be released from the obligation to pay the annual fees until the relevant Patent is exploited.

Article 101

Where the Government intends to self-exploit a Patent that is important to the conduct of defense and security of the State and for an urgent need for the sake of public interest, the Government shall notify the Patent Holder in writing of this fact by setting forth:

a. the title and number of the relevant Patent as well as the name of Patent Holder;

b. reasoning;

c. the period of exploitation;

d. other matters that are deemed significant.

The exploitation of a Patent by the Government shall be carried out with the provision of reasonable compensation to the Patent Holder.

Article 102

The decision of the Government to self-exploit a Patent shall be final.

Where the Patent Holder does not agree with the amount of compensation stipulated by the

Government, he may file objections as a lawsuit to the Commercial Court.

The process of examining the lawsuit as referred to in paragraph (2) shall not stop the exploitation of the relevant Patent by the Government.

Article 103

Provisions regarding the procedure of exploitation of Patent by the Government shall be further regulated by Government Regulation.

Government Regulation No. 27 of 2004 regarding the Procedure of Exploitation of Patent by the Government

Article 2

(1) In case that the government is in the opinion that a patent in Indonesia is very important for state defense and security, the government itself may exploit the patent.

(2) In case that the government is in the opinion that there is an urgent need for the public interest of a patent, the patent maybe exploited by the government.

(3) In the exploitation of a patent, as referred to in paragraphs (1) and (2), the government may authorize a third party to implement it.

(4) The third party referred to in paragraph (3), shall fulfill the following requirements:

a. Having a facility and being able to exploit the patent;

b. Not delegating the exploitation of patent to any other party; and

c. Having good methods of production, circulation, and monitoring which is in accordance with prevailing laws and regulations.

Article 3

The exploitation of patent, as referred to in Article 2 paragraph (1) includes the exploitation of patent in the following fields:

a. Fire guns;

b. Ammunitions;

c. Explosives used in the military;

d. Chemical weapons;

e. Biological weapons;

f. Nuclear weapons; and

g. Military equipments.

Article 4

The exploitation of patent, as referred to in Article 2 paragraph (2) includes the exploitation of paten in the following fields:

a. Pharmaceutical products needed to eliminate wide- spreading disease;

b. Chemical products related to agriculture; or

c. Medicine for animals needed to eliminate wide-spreading animal pests and diseases.