After BRICS taste the MINT: Indonesia. Andrew Diamond, J.D., LL.M. IP Januar Jahja & Partners Jakarta, Indonesia

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1 After BRICS taste the MINT: Indonesia Andrew Diamond, J.D., LL.M. IP Januar Jahja & Partners Jakarta, Indonesia PTMG 90 th Conference Venice, Italy March 2015

2 Indonesia General Source: CIA World Factbook. 17,000 islands, 6,000 inhabited 4 th most populous country in the world approx. 252 million in m by 2030 Social Media Capital of the World Largest economy in Southeast Asia & 16 th largest in world Projected to grow to 9 th largest in world by

3 Indonesia General 2

4 Indonesia General Key drivers of growth: Domestic Consumption (59% of GDP, 2013) FDI: 13.5% increase in 2014 to US$24.5 billion (30% of GDP) Natural resource extraction: Oil & Gas, Palm, Minerals (7% of GDP) Consumer confidence: 2 nd highest in world (Nielsen) NY Times, Sept. 19, 2014: 3

Indonesia General Joko Widodo ( Jokowi ): New President (2014-19) Former businessman, mayor, and Governor of Jakarta

5 Indonesia General Joko Widodo ( Jokowi ): New President ( ) Former businessman, mayor, and Governor of Jakarta ( ) Pro-investment, anticorruption populist Launched free health care and education programs in Jakarta while Governor 4

Indonesia as a Pharmaceutical Market Most promising emerging market for pharma in 2015 Double-digit growth since 2009 Approx. $5 billion in 2013 Expected to reach $9.

6 Indonesia as a Pharmaceutical Market Most promising emerging market for pharma in 2015 Double-digit growth since 2009 Approx. $5 billion in 2013 Expected to reach $9.9 billion by 2020 Per capita spending on health care Expected to increase from $109 to $237 in 2018 Key drivers: Universal health insurance by 2019 (JKN) Increasing levels of disposable income fuelled by continuing economic growth Demographics: Rising life expectancy & urbanization, young population 5

cap for certain industries Recently increased to 85% for pharma Patient snapshot Tendency towards self-medication OTC medicines=48% of

7 Indonesia as a Pharmaceutical Market Market snapshot More than 200 companies currently operating But top 20 account for 80% of total production Domestic companies control 75% of market Kalbe Farma has biggest market share at 14% Negative Investment List Foreign ownership cap for certain industries Recently increased to 85% for pharma Patient snapshot Tendency towards self-medication OTC medicines=48% of market in 2013 Highest in Southeast Asia Out of pocket, minimal reimbursement (if any) Middle income segment increasingly choosing branded generics 6

8 Indonesia Trademarks Overview Trademark Law No. 15/2001 Very basic document First to file jurisdiction No rights accrue through use, only through registration Member of: Paris Convention TRIPS Not a Member of: Madrid System Expected to join by Dec as part of ASEAN Economic Community (AEC)

Indonesia Trademark Application Procedure Timeline: 24-30 months (smooth registration) Substantive Examination: 80% of rejections based on prior registration(s) Be prepared to appeal questionable

9 Indonesia Trademark Application Procedure Timeline: months (smooth registration) Substantive Examination: 80% of rejections based on prior registration(s) Be prepared to appeal questionable decisions to the Trademark Appeal Commission 3M, PT. Kalbe Farma, Apple, Inc., Honda, Bayer, Warner Bros., Siemens, Swarovski, PT. Gracia Pharmindo, Hisamitsu Pharmaceutical Can appeal Commission s decision as well to Jakarta Commercial Court Mar. 2010: Gilead vs. Trademark Appeal Commission re: Viread 8

10 Most Popular Nice Classes Indonesia 2012 Source: DGIP Website, Statistik Merek 2012, 9

60,000 50,000 40,000 ASEAN Compared: Applications 2010-2013 Averaged 30,000 20,000

11 60,000 50,000 40,000 ASEAN Compared: Applications Averaged 30,000 20,000 Foreign Domestic 10,000 0 Source: Compiled from WIPO Statistical Country Profiles. 10

Indonesia Challenges Trademark piracy Past and present problem Can be addressed through: Preliminary searches Active monitoring/watching Cancellation Actions vs. Bad Faith Registrations Viagra vs.

12 Indonesia Challenges Trademark piracy Past and present problem Can be addressed through: Preliminary searches Active monitoring/watching Cancellation Actions vs. Bad Faith Registrations Viagra vs. Siagra; Neurobion vs. Bioneuron Legal Gaps/Loopholes No pharma-specific provisions in the Trademark Law E.g., prohibiting registration of INNs as trademarks Unfair competition/trade dress File for label/packaging marks instead 11

in circulation fake Painkillers, anti-malarials, diabetes & lifestyle drugs

13 Indonesia Challenges Counterfeits Big problem, esp. for pharmaceuticals Approx % of drugs in circulation fake Painkillers, anti-malarials, diabetes & lifestyle drugs Both offline (e.g., markets, roving salesmen) and increasingly online Recent Raids/Takedowns: BPOM USTR Special 301 Report (2014): The United States welcomes reports of enforcement raids conducted against counterfeit and pirated goods, as well as a reported increase in actions against counterfeit and substandard pharmaceutical products. However,» Remains on Priority Watch List for

Indonesia Anti-Counterfeiting Generally: Enforcement starts with having a

information to build case Civil: Cease and desist letters Litigation:

Criminal: Raids/Seizures: Complaint-based process PPNS: Investigative Unit

Investigative Unit Post-Raid/Seizure: Objectives?

14 Indonesia Anti-Counterfeiting Generally: Enforcement starts with having a registered trademark in the first place Investigate first, gather information to build case Civil: Cease and desist letters Litigation: Commercial Courts Infringement Proceedings Damages; Injunctions; Seizures Criminal: Raids/Seizures: Complaint-based process PPNS: Investigative Unit of IP Office Police: National, Provincial, District, Sector BPOM: Investigative Unit Post-Raid/Seizure: Objectives? Information; Destruction of goods; Administrative sanctions; Negotiated settlement; Public apology; Prosecution/conviction 13

Increased penalties for infringement Madrid Protocol ASEAN Economic Community 2015

15 Indonesia What s Next? Trademark Law being revised: 2015? Proposed Changes: Non-traditional marks Opposition period before substantive examination Increased penalties for infringement Madrid Protocol ASEAN Economic Community 2015 Impact of regional economic integration? Conclusion: 2015 key point in time for this very interesting and promising market 14

16 Thank You!! Terima kasih!! 15

Nigeria The Secret Ingredient of MINT?

Nigeria The Secret Ingredient of MINT? Introduction - BRIC(s), Jim O Neill s prodigy makes way for the new flavour of the decade - MINT Mexico, Indonesia, Nigeria, Turkey - MINT has prevailed over other