CHAPTER V: TRANSFER OF A PATENT

 

Part One: Transfer of Ownership

 

Article 73

(1) A patent or the ownership of a patent may be transferred in whole or in part by:

a. inheritance;

b. donation;

c. testament;

d. agreement, provided that such agreement must be made in the form of a notarial deed;

e. other reasons recognised by law.

(2) The transfer of a patent referred to in paragraph (1) items a, b and c must be accompanied by patent documents together with other rights pertaining to the patent.

(3) All forms of patent transfer referred to in paragraph (1) must be registered with the Patent Office and recorded in the General Register of Patent upon payment of a fee, the amount of which shall be stipulated by the Minister.

(4) The execution of a transfer which is not in accordance with the provisions of this article shall be invalid and have no force and effect.

(5) The requirements and procedures for the registration and recording of patent transfers shall be further regulated by the Minister.

 

Article 74

(1) Except for inheritance and in cases of an assignment or transfer made together with part or all of his business, the rights as the first inventor may not be assigned or transferred to another person.

(2) An assignment or transfer of right as the first inventor must be registered at the Patent Office which in turn shall record it in the General Register of Patents.

(3) The Patent Office shall announce the assignment or transfer of the rights referred to in paragraph (2) in the Official Patent Gazette.

 

Article 75

The transfer of ownership of a patent shall not nullify the right of the inventor to have his name or other identity included in the patent concerned.

 

Part Two: Licensing

Article 76

(1) A Patent Holder shall be entitled to grant a license to another person on the basis of a licensing agreement in order to perform acts referred to in Article 17.

(2) Unless agreed otherwise, the scope of a license referred to in paragraph (1) shall cover acts referred to in Article 17, shall continue for the term of the license granted, and shall be effective for the entire territory of the Republic of Indonesia.

 

Article 77

Unless agreed otherwise, a Patent Holder shall continue to be able to personally implement the invention or to grant a license to any other third party to perform acts referred to in Article 17.

 

Article 78

(1) A licensing agreement shall be prohibited to contain provisions which may directly or indirectly give rise to effects which damage the Indonesian economy, or to contain restrictions which obstruct the ability of the Indonesian people to master and develop technology in general and in connection with the patented invention in particular.

(2) Registration and requests for a licensing agreement containing provisions referred to in paragraph (1) must be rejected by the Patent Office.

 

Article 79

(1) A licensing agreement must be registered with the Patent Office and recorded in the General Register of Patents upon a payment of a fee, the amount of which shall be stipulated by the Minister.

(1a) Where a licensing agreement is not registered with the Patent Office referred to in paragraph (1), said licensing agreement shall not have legal effects on a third party.

(2) The requirements and procedure for the registration and recording of a licensing agreement shall be further regulated in a Government Regulations.

 

Article 80

Further provisions governing licensing agreements shall be regulated in a Government Regulation.

 

Part Three: Compulsory Licenses

Article 81

A Compulsory License is a license to implement a patent, which is granted by the District Court after having heard the Patent Holder concerned.

 

Article 82

(1) Any person, after the expiration of a period of 36 (thirty six) months commencing from the date of issue of a patent, may file an application to the local District Court for a Compulsory License to implement the patent concerned.

(2) An application for a Compulsory License referred to in paragraph (1) may only be made on the grounds that the patent concerned is not being implemented in Indonesia by the Patent Holder despite opportunities for commercial implementation which should be pursued.

(2a) An application for a Compulsory License may also be made any time after a patent has been granted on the grounds that the patent concerned has been implemented by the Patent Holder or the Licensee in a form and manner which contravene the public interest.

(3) With due regard to capabilities and the situation as it develops, the Government may stipulate that during the initial implementation this Law, an application for Compulsory Licenses shall be filed to certain District Courts.

 

Article 83

(1) In addition to the truth of reasons referred to in Article 82 paragraph (2), a Compulsory License may only be granted if :

a. the person submitting said request can provide convincing proof that he:

1) has the ability to personally implement the patent;

2) has his own facilities to readily implement of the patent concerned;

3) has made efforts in a sufficient period of time to acquire a license from the Patent Holder on the basis of normal terms and conditions but did not succeed.

b. the District Court is of the opinion that said patent can be implemented in Indonesia on a feasible economic scale and can be of benefit to the majority of the society.

(2) The examination of a n application for a Compulsory License shall be carried out by the District Court in a court session, also hearing the expert opinion of the Patent Office and the Patent Holder concerned.

(3) A Compulsory License shall be granted for a period no longer than the period of patent implementation and shall be further regulated in a Government Regulation.

 

Article 84

If, based on evidence and opinion referred to in Article 83, the District Court is convinced that the period referred to in Article 82 is insufficient for the Patent Holder to commercially implement the patent in Indonesia, or within a region referred to in Article 18 paragraph (2), the District Court may stipulate either to temporarily postpone the court session or to reject the application.

 

Article 85

(1) The implementation of a Compulsory License shall be accompanied by payment of royalties by the Compulsory Licensee to the Patent Holder.

(2) The amount of royalty to be paid and the method of payment shall be stipulated by the District Court granting the Compulsory License.

(3) Stipulation of the amount of royalties shall take into account common practice in patent licensing or other similar agreements.

 

Article 86

The decision of the District Court regarding the grant of a Compulsory License shall include the following matters:

a. a compulsory license shall be non-exclusive ;

b. the reasons for granting of the Compulsory License ;

c. evidence, including convincing information or explanations which form the basis for the granting of the Compulsory License ;

d. the period of the Compulsory License ;

e. the amount of royalties to be paid by the Compulsory Licensee to the Patent Holder and the method of payment therefor ;

f. conditions on the termination of the Compulsory License and matters which may cause revocation of the Compulsory License;

g. the Compulsory License will be solely used to supply the demand in the national market.

h. other matters necessary to fairly protect the interest of the parties concerned.

 

Article 87

(1) The Compulsory Licensee shall be obligated to register the Compulsory License which he receives at the Patent Office to be recorded in the General Register of Patents.

(2) A registered Compulsory License shall immediately announced by the Patent Office in the Official Patent Gazette.

(3) Registration of a Compulsory License shall be subject to a fee, the amount of which shall be stipulated by the Minister.

(4) A Compulsory License may only be implemented after registration and payment of the fee referred to in paragraph (3).

(5) Implementation of a Compulsory License shall be deemed to be the implementation of a patent.

 

Article 88

(1) A Compulsory License may also be applied from time to time by a Patent Holder on the grounds that the implementation of his patent would be impossible without infringing another existing patent.

(2) An application for a Compulsory License referred to in paragraph (1) may only be considered if the patent to be implemented genuinely contains elements of new technology, which are clearly more advanced that said existing patent.

(2a) Where a request for a Compulsory License is applied on the grounds referred to in paragraph (1) and (2) :

a. the Patent Holder shall be entitled to give each other a license to use the other party’s patent under reasonable terms.

b. the implementation of patent by the Compulsory Licensee cannot be transferred unless it is transferred together with the assignment of the other patent.

 

(3) Provisions regarding the filing of application to the District Court, the payment of royalties, the contents of the court decision, registration and recording, as well as the period or cancellation of the Compulsory License regulated by Part Three of this Chapter shall also apply to a Compulsory License referred to in paragraph (1) and (2), except provisions regarding the period for filing of requests as provided for in Article 82 paragraph (1).

 

Article 89

(1) Upon a request of the Patent Holder, the District Court may revoke previously granted Compulsory License if :

a. the grounds which formed the basis of the grant of the Compulsory License no longer pertain;

b. the recipient of the Compulsory License has evidently not implemented said Compulsory License or has not made any appropriate preparations for immediate implementation of the license;

c. the recipient of the Compulsory License is no longer complying with other such terms and conditions, including the obligation to pay royalties stipulated in the grant of the Compulsory License.

(2) Where the District Court decides to cancel a Compulsory License, a copy of the decision must be forwarded to the Patent Office at the latest 14 (fourteen) days after the date of the District Court’s decision to be recorded the General Register of Patents, and announced the Official Patent Gazette.

 

(3) The Patent Office must give notice of the recording and announcement of the decision of the District Court referred to in paragraph (2) to the Patent Holder, the Holder of the revoked Compulsory License and to the District Court which decided on said revocation at the latest 14 (fourteen) days after the Patent Office has received a copy of said decision of the District Court.

 

Article 90

(1) A Compulsory License shall expire at the end of the period stipulated in the grant thereof, upon revocation, or where the Compulsory License returns the license he has obtained to the Patent Office prior to the expiry of said period.

(2) The Patent Office shall record the expiry of a Compulsory License in the General Register of Patents, announce it in the Official Patent Gazette and give notice in writing to the Patent Holder and the District Court which decided to grant the license.

 

Article 91

The revocation or expiry of a Compulsory License referred to in Article 89 and Article 90 shall result in the restoration of the rights of the Patent Holder to the patent concerned, commencing on the date of recording in the General Register of Patents.

 

Article 92

(1) A Compulsory License may not be transferred unless said transfer is made concurrently with the transfer of commercial activities or parts of commercial activities using the patent concerned or by inheritance.

 

(2) A Compulsory License which is transferred by inheritance shall continue to be subject to the requirements of its grant and other provisions, particularly regarding the period of time, and must be reported to the Patent Office to be recorded and registered in the General Register of Patents.

 

Article 93

Further provisions regarding Compulsory Licenses shall be regulated in a Government Regulation.

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