Tackling online piracy

The Creative Economy Agency is preparing a software solution for dealing with online piracy.

According to a Jakarta Post repot (see here) the system will consist of a software solution that compares a database of copyrighted content (e.g. films, music) with content being downloaded by users of targeted websites (e.g. sites that are known to facilitate downloads of illegal content).  If illegal downloads are identified, users will be notified that they are violating the law and advised of the sanctions they may face.  They will also be directed to separate websites were legal content can be downloaded.  The new system is so far only 10% complete, but expected to be ready for implementation in January 2016.

Ironically enough, the biggest hurdle for the Creative Economy Agency will be establishing whether or not downloading pirated content is illegal in Indonesia.  The Copyright Law includes fair use exceptions (see our post here) for:

• the reproduction and distribution of copyrighted content through IT and communications media where such use is non-commercial in nature (article 44d)
• making 1 copy of any type of work for personal use (article 47); and
• temporary copies of works made by digital media (article 50).

Whether or not the initiative is successful will also depend on the participation of content owners.  Who will of course demand an accessible and low-cost system.

It is hoped that the Creative Economy Agency will come up with some viable solutions.  With an operational budget of IDR 100 billion (around USD 7 million) it certainly has adequate resources.

E-filing demo at DGIP

The Directorate-General of Intellectual Property (“DGIP”) hosted a demonstration of its new e-filing system for trademarks, patents and designs last week.

The session, held on 2 September, was intended to introduce the DGIP’s new e-filing system which is expected to be up and running by the end of this year.  Key features of the system include:

• that it is accessible by any user with an approved user account - not necessarily an IP Consultant;
• application data is automatically uploaded to the DGIP’s IPAS database system, thereby reducing administrative burdens and delays; and
• official fees can be paid at one of 25 banks (currently, payment is only possible through BRI which has a branch at the DGIP). 

It was also apparent that there is still a lot of work to be done before the system is ready to use, as is to be expected with any new system in its early stages of development.  Hopefully the DGIP can devote the resources required to finish this project soon.  Introducing electronic filing would be an important step forward, but rolling out a functional database is no doubt a higher priority.

New Directors at DGIP

On 1 September 2015, the Directorate-General of Intellectual Property held a ceremony to mark the incoming and outgoing Director of the Trademark Office, the incoming and outgoing Director of Information and Technology.

The following addressed the ceremony

• Incoming Director of the Trademark Office - Bapak Fathlurachman
• Outgoing Director of the Trademark Office - Bapak Bambang Iriana Djajaatmadja
• Incoming Director of Information and Technology - Bapak Yasmon
• Outgoing Director of Information and Technology – Bapak Karjono 

Bapak Fathlurachman has been the Regional Office Head of the Ministry of Law and Human Rights in Aceh since August 2013, and before that the Director of Trademarks. We hope to see him use his experience to effectively oversee the significant changes in Indonesian trademark practice that will come with the new trademark law (currently being discussed in the House of Representatives and expected to be passed by end of this year).

http://humas.dgip.go.id/serah-terima-jabatan-pimpinan-tinggi-pratama-direktur-merek-lama-bambang-iriana-djajaatmadja-ke-direktur-merek-baru-fatlurrahman-dan-direktur-teknologi-informasi-lama-kardjono-ke-direktur-informasi-b/

Regulating the online space

Indonesia is passing a suite of new laws to regulate commercial and criminal activity in the online space.

In what appears to be a move to increase tax revenues, a draft regulation that will require the registration of online businesses is expected to be issued by February 2016 (see here).  The regulation will require all e-commerce businesses to obtain permits from the Communication and Information Ministry. It is said to apply to both local and foreign businesses, though it is not clear how the regulation will be enforced against businesses based overseas.

In an effort to address criminal activity, it is expected that the House of Representatives will pass a new law on cyber security later this year (see here).  It will deal with hacking, scams, and identity theft - which have been featuring in news reports recently, with numerous cases of international criminal networks basing themselves in Indonesia to take advantage of weak enforcement.

And the Financial Services Authority (Otoritas Jasa Keuangan) has issued a regulation on 26 June 2015 (No. 8/POJK.04/2015) that requires all listed companies to have a website.  It prescribes minimum requirements for content, and heavy sanctions apply for non-compliance - including revocation of business licenses.

That authorities are turning attention to the online space is no surprise, given the number of Indonesian users that are now online, and commercial activity taking place.  All eyes will be on how the new laws are implemented and enforced.

Film piracy in Indonesia

The United States Trade Representative claims that film piracy is rampant in Indonesia (see our post on the 301 report here).  And by all accounts this is a true reflection of the market, for Hollywood movies.  Interestingly, not so with the local film industry.

An article in the Jakarta post yesterday claims that the Association of Indonesian Film Producers (APROFI) has been taking action against pirated content online (see here).  The Association has apparently been reporting websites to the National Police's Criminal Investigations Directorate (Bareskrim), under which is a cybercrime sub-division.  Regional police units also have a cybercrime division.

These cybercrime divisions deal with crimes in the online space, and as the number of users coming online in Indonesia grows is expected to play an increasingly active role.  If infringing websites are based in Indonesia, the cybercrime divisions can take criminal action which can lead to penalties of up to 10 year’s imprisonment.  They can also take action against websites targeting Indonesian consumers - by blocking the sites, and/or pursing local connections.

Increased activity from associations like APROFI, and the government’s Creative Economy Agency, is good news for both local and foreign business interests alike.  The more investment domestic businesses have in intellectual property, the more we can expect improvements in Indonesia’s IP infrastructure.