1. Patent law update

2. fintroduction
The concern with Indonesia has been the weak implementation of its IP laws.
General tone of new patent law - trying to make pharmaceutical products accessible to the public - with the rejection of second medical use, exclusion of new form of known substance, requirement to disclose genetic sources leading to more onerous compliance, expanded scope for compulsory licensing, expanded defense under bolar exception and parallel import for pharmaceutical products.

3. fSecond medical use excluded
New exclusions include:
a. New use of a known product. 
b. New form of a pre-existing compound which does not offer significant increase in efficacy
Second medical indication for a known compound will therefore not be patentable. Such invention was previously allowed by using "Swiss-type claims" to get around the exclusion on method of medical treatment.
Both exclusions suggest that Indonesia is taking the cue from paragraph 3d of the Indian Patent Law which excludes new use of known substance or new form of known substance where there is no known enhancement of efficacy.

4. Genetic source
Article 26
If Invention relates to and / or derived from genetic resources and / or traditional knowledge, should be clearly and correctly stated as to origin of genetic resources and / or the said traditional knowledge in the description.
Information on genetic source and / or traditional knowledge referred to in Paragraph ( 1 ) shall be determined by official agencies recognized by the government. The division basil and / or access to genetic resources and / or traditional knowledge as referred to in paragraph ( 1 ) shall be implemented in accordance with the legislation and international agreements in the field of genetic resources and traditional knowledge 

5. Bolar provisions
Under the old law, it is a defence to criminal proceedings for a third party to import a patented pharmaceutical product for the purpose of seeking marketing approval during the last two years of the patent term. The new law increases this period to five years and provides a defence in relation to both criminal and civil action.

6. What if it is legal in that country because there is no patent
Parallel import
The new law also allows for parallel import of patented pharmaceutical products from overseas market where such products have been "marketed legally" in that country
What if it is legal in that country because there is no patent
What if it is legal in that country because of compulsory license

7. Employee invention
Under the new Law, employees are entitled to compensation "based on agreement having consideration to economic benefit obtained from invention".
Under the old law, employees were entitled to compensation that was "fair having consideration to the economic benefit obtained from invention."
The new Law recognizes that employee compensation can now be based on agreement between the parties. The word "fair" is no longer used.
The revision gives employers some flexibility to determine the scope compensation provision.

8. Obligation to use patent in indonesia
Article 20 provides that the patent holder must make the product or use the process in Indonesia. It further provides, in Article 20(2), that such manufacture or use of process shall support technology transfer, attracting investment and/or providing employment.
Article 20(2) is new.
Invalidation can be by - prosecutor or other parties representing national interest against the Patent Holder or compulsory-Licensee to the Commercial Court - Article 132

9. Annuity
Under the new law, the grace period for late payment is significantly shortened.  The patent is deemed cancelled if the annuity is not paid by the due date. However, the patentee may request for up to 12 months extension by filing request at least 7 days before due date upon paying of a fee for extension.

10. Compulsory license
The new patent law expanded the scope of compulsory license to include importation of the patented product by the licensee applicant as well as for exporting patented pharmaceutical products to developing or under- developed disease-afflicted countries in need of certain pharmaceutical products. It is arguable that this expanded scope may conflict with WTO's Trade Related Aspects of Intellectual Property Rights in particular the following provisions: 31(e) such use shall be non-assignable, except with that part of the enterprise or goodwill which enjoys such use; 31 (f) any such use shall be authorized predominantly for the supply of the domestic market of the Member authorizing such use;

11. Criminal sanction
Old Patent Law
New Patent Law
4 years’ imprisonment and/or IDR 500 million fine
4 years’ imprisonment and/or a IDR 1 billion fine
Maximum punishment (fine) for infringement of simple patent has also increased from IDR 250 million to IDR 500 million.
The new patent law also introduces enhanced punishment in the case where infringement results in damage to health and/or environment - up to 7 years imprisonment and/or maximum fine of IDR 2 billion; and when death results, the punishment is further enhanced to up to 10 years imprisonment and/or maximum fine of IDR 3.5 billion

12. F
Thank You