Information Technology for Easy Access to IPR Registration for SMEs in

Yogyakarta

Dyah Permata Budi Asri

, Ryan Ari Setyawan

, Savira

and Syukur Larossa

Faculty of Law, Janabadra University, Jalan Tentara Rakyat Mataram 55-57 Yogyakarta 55231 Indonesia

Keywords:

SMEs, Intellectual Property Rights, legal protection, information technology, IPR Registration.

Abstract:

The existence of SMEs in Indonesia is very rapid, where each year produces extraordinary innovation products

from creativity that has high economic value. In addition, the existence of SMEs is also believed to have a

tremendous impact on a country’s economic income. Because SMEs are strongly associated with creative

industries that always create innovation and high creativity, legal protection is needed for their intellectual

property. To simplify the SME registration procedure, it requires a touch of information technology so that

SMEs can quickly and easily access IPR registration. This paper seeks to provide a website-based strategy

for increasing IPR registration for SMEs in Yogyakarta at the Ministry of Industry and Trade of the Special

Region of Yogyakarta through the Intellectual Property Management Center.

1 INTRODUCTION

As one of the most populous countries in the world,

Indonesia still relies on micro, small and medium en-

terprises (SMEs), which produces creative products,

as the backbone of its economy. Small and Medium

Enterprise (SMEs) in Indonesia plays an important

role in social and economic growth, due to great num-

ber of industry, GDP contribution, and total employ-

ment. SMEs characteristic more agile and adaptable

that capable to survive and raise their performance

during economical crisis than larger ﬁrm.(Hamdani

and Wirawan, 2012). Unfortunately, of the many

MSMEs in Indonesia, only a few have realized the

importance of protecting intellectual property rights

(IPR). In fact, IPR protection is one strategy to in-

crease the competitiveness of small-scale businesses.

With a total of more than 56 million businesses,

Indonesia has broken the record of the most MSME

owner countries in Southeast Asia. MSMEs con-

tribute 60.3% of Indonesia’s gross domestic product

(GDP) and employ 97% of the national workforce

(Herlinda, 2017) However, in reality, of the many

MSMEs in Indonesia, only a few have realized the

importance of protecting intellectual property rights

(IPR). In fact, IPR protection is one strategy to in-

crease the competitiveness of small-scale businesses.

Therefore there needs to be real support from the gov-

ernment regarding this reality.

In Yogyakarta, the Department of Industry and

Trade of Special Region of Yogyakarta through the

Intellectual Property Management Center, is currently

developing the use of co-branding for SMEs products

from Jogja, based on Governor Regulation Number

21 Year 2017 concerning the Use of the Jogjamark

Brand, 100% Jogja and Jogjatradition as Co Branding

of Regional Products to ensure protection and com-

petitiveness, increase consumer loyalty and trust, as

well as legal protection and prevent the practice of

unfair competition. The use of co-branding based on

Intellectual Property Rights (IPR) is an effort to pro-

tect the intellectual property aspects of MSME prod-

ucts in Yogyakarta. In order to implement the rules

regarding Jogja Co-Branding, facilities are needed

that can facilitate SMEs to access IPR registration

through the Center for Intellectual Property Manage-

ment, by utilizing technological advances, especially

Information Technology as Information Technology-

based IPR service models, namely website.

Technology is the key for developing core com-

petency in industry. Technological innovation is re-

garded as a tool for strengthening the competitiveness

of a nation (because it secures continued economic

growth by reinforcing employment and income gen-

eration)(Sikka, 1999). This paper try to propose a

model and strategy for the use of information tech-

nology in order to facilitate SMEs to access IPR regis-

tration through the Intellectual Property Management

Center.

Asri, D., Setyawan, R., Savira, . and Larossa, S.

Information Technology for Easy Access to IPR Registration for SMEs in Yogyakarta.

DOI: 10.5220/0009878300700073

In Proceedings of the 2nd International Conference on Applied Science, Engineering and Social Sciences (ICASESS 2019), pages 70-73

ISBN: 978-989-758-452-7

2 METHODOLOGY

This research is qualitative research with an Empir-

ical Juridical approach. Department of Industry and

Trade through the Management of Intellectual Prop-

erty of the Special Region of Yogyakarta became the

location in this study. Data collection methods are

carried out through library research studies and ﬁeld

studies with informants from Department of Indus-

try and Trade through the Management of Intellec-

tual Property of the Special Region of Yogyakarta and

The Ministry of Law and Human Rights Regional Of-

ﬁce of the Special Region of Yogyakarta. The analy-

sis method starts with data collection, data reduction,

data presentation, and conclusion drawing.

3 RESULTS AND DISCUSSION

3.1 The Importance of IPR for Creative

Industries

Protection of Intellectual Property Rights (IPR) is an

important thing to do in Indonesia today. This is based

on the reason that Indonesia has great potential in the

ﬁeld of creative industries and abundant natural re-

sources, so it needs to be supported by optimal efforts

in providing IPR protection. Many beneﬁts will be

obtained from IPR protection, among others because

of people others who want to enjoy the economic ben-

eﬁts of the IPR of an owner, they must obtain permis-

sion from the owner. Likewise, when someone else

uses without permission, falsifying, imitating, or tak-

ing IPR, it is categorized as violating the law. This

is the background to the importance of IPRs needing

to be registered. In the business world, IPR can be

an important element because it can provide compet-

itive advantage when playing in targeted markets for

its owners. In fact, it is also possible that this IPR can

be a trigger to bring up new innovations for compa-

nies that ultimately beneﬁt the public as well as the

company itself.

There are reasons to believe that the enforcement

of IPRs has a positive impact on growth prospects

(Lall, 2003). Intellectual Property (IP) should be seen

as a power tool for economic growth instead of an ob-

scure legal concept. The protection of IP rights plays

an important role in inducing technological change

and facilitating economic growth. The value of IP

is often not adequately appreciated and its potential

for providing opportunities for future proﬁt is widely

underestimated by SMEs (Sukarmijan and Sapong,

2014). Small and medium-sized enterprises (SMEs)

are often the driving force behind such innovations

(Saleh et al., 2008). Their innovative and creative ca-

pacity, however, is not always fully exploited as many

SMEs are not aware of the intellectual property sys-

tem or the protection it can provide for their inven-

tions, brands, and designs (Druker, 2005). Further-

more, IP rights may enhance the value or worth of

SMEs in the eyes or investors and ﬁnancing institu-

tions. Hence, in the event of sale or merger or ac-

quisition, IP assets may signiﬁcantly raise the value

of the enterprise. Traditionally, physical assets have

been responsible for the bulk of the value of a busi-

ness entity and largely responsible for determining the

competitiveness of an enterprise in the market. How-

ever, these scenarios have changed as a result of the

revolution of the information technologies, intangible

assets ranging from human capital such asknow how

to ideas, brands, designs and other intangible assets

from the creative and innovative capacity are often

today become more valuable than the physical assets

(Idris, ). However, many are unaware of the impor-

tance of IP. In a recent survey, it was clearly evident

that the percentage of public awareness about IP is

very low and only understood by parties with interest

or institutions and organizations which are involved

in the ﬁeld (of Malaysia, 2019).

IPR as intangible, obtains legal protection due to

registration (except for copyrights and trade secrets).

With registration, protection for owners of intellectual

property rights will be obtained in the form of obtain-

ing exclusive rights. Without registration efforts there

is no protection so that exclusive rights are not ob-

tained. Registration of intellectual property rights has

protective consequences. These intellectual works are

born with sacriﬁces, making the works presented to be

valuable, especially with the economic beneﬁts that

can be enjoyed, the inherent economic value fosters

the property concept of intellectual property for the

business world, or the works are said to be assets.

Exclusive rights provided by law are appropriate re-

wards for investors and creators of IPR.. Through

these rewards creative people are encouraged to con-

tinue to hone their intellectual abilities so that they

can be used to help improve human life. The main

objective of the IPR legal system is to ensure that the

creative process continues by providing adequate le-

gal protection and providing sanctions to those who

use the creative process without permission.

3.2 IPR Registration for SMEs in

Yogyakarta

There are still many small and medium micro busi-

ness actors (SMEs) who do not understand Intellec-

Information Technology for Easy Access to IPR Registration for SMEs in Yogyakarta

tual Property Rights (IPR) (Asri, 2018). IPR is the

legal protection of the products produced. This is an

intangible asset. If a product is not registered with an

IPR, someone else can emulate it. Meanwhile, if the

owner has registered it can sell the product brand to

another party, and the owner has economic beneﬁts.

In Indonesia MSMEs that have IPR are only around

11 percent, while around 90 percent do not take care

of IPR.

In order for the registration of IPR for SMEs in

Yogyakarta to increase, then in Yogyakarta the De-

partment of Industry and Trade of the Special Region

of Yogyakarta has an institution that specializes in

managing and managing intellectual property, espe-

cially for SMEs. The institution was named the Cen-

ter for Intellectual Property Management, which was

under The Departement of Industry and Trade of the

Special Province of Yogyakarta.

The Center for Intellectual Property Management

has the duty to provide services and facilitation for

business development and intellectual property man-

agement services for small and medium enterprises

in the Special Region of Yogyakarta. This institution

was established in order to encourage the realization

of progress and development of small and medium in-

dustries in the Special Region of Yogyakarta by pro-

viding various forms of services and consultations

to business people. In addition, this institution car-

ries out other important tasks, namely providing ser-

vices and technical assistance relating to the registra-

tion and management of intellectual property such as

dustrial design and other intellectual property rights.

This institution has a strategic role and function

as a party that will provide full support and facili-

tation for the creation of the existence of small and

medium-sized businesses that are strong and compet-

itive. This institution will oversee business people to

have knowledge and awareness of the meaning and

signiﬁcance of intellectual property rights while pro-

viding management services for Intellectual Property

Rights. Moreover, this institution is committed to pro-

viding the best services for small and medium busi-

nesses in Yogyakarta work area in an effort to de-

velop small and medium enterprises to have a strong

and solid footing related to the protection of Intellec-

tual Property Rights which are an integral part of their

business activities .

So far, the Intellectual Property Management Cen-

ter has provided services manually, by conducting so-

cialization to SMEs in Yogyakarta, and SMEs regis-

tering directly with IPR at the Ofﬁce of the Manage-

ment of Intellectual Property. This method is con-

sidered ineffective because it requires time and also

not all SMEs can take the time to visit the Intellec-

tual Property Management Center because of its re-

mote location. Therefore, a breakthrough is needed in

order to facilitate access to IPR registration through

the development of information technology. With

these easy facilities, it will certainly make SMEs in-

terested in registering IPRs because they can be ac-

cessed wherever they are.

3.3 Website-based IPR Registration

System

Current registration services for IPR in Indonesia are

carried out by the Directorate General of Intellectual

Property (DJKI) of the Ministry of Law and Human

Rights in Jakarta. But in reality, so far to deal with

IPR registration is not easy, complicated and bureau-

cratic, so people are reluctant to manage IPR. If this is

allowed, it will certainly hinder the targets that have

been sought by the government in obtaining IPR reg-

istration.

Technological advancements in the ﬁelds of trans-

portation, telecommunications and information have

created a world without boundaries, facilitate the oc-

currence of human mobility between countries and in-

formation exchange through the world virtual. The

use of information technology can also be used to fa-

cilitate IPR services. Because it can facilitate access

that can be done anywhere. So that it will not waste

time visiting a service institution that may be too far

away from the location of SMEs.

The system built is a system that is used to provide

IPR services to the wider community. System users

are grouped into two groups, namely system admin-

istrators and communities. The Administrators group

has full authority over data, system user settings, and

validation related to IPR registration from the com-

munity. Community groups have the right to view

IPR related news and can apply for IPR registration.

IPR registration from the community will be val-

idated by the Administrator. IPR registration that is

declared valid by the Administrator can be forwarded

to the Directorate General of Intellectual Property of

the Ministry of Law and Human Rights of the Repub-

lic of Indonesia. The system will be built web-based

using the PHP programming language, and MySQL

as a database management system.

ICASESS 2019 - International Conference on Applied Science, Engineering and Social Science

Figure 1: IPR Service Website at the Intellectual Property

Management Center

4 CONCLUSIONS

The existence of information technology greatly facil-

itates the process of submitting IPRs for SMEs. Eas-

ily accessing IPR registration sites owned by the In-

stitute for Intellectual Property Management institu-

tions under the Department of Industry and Trade of

the Special Region of Yogyakarta, will certainly pro-

vide many beneﬁts for the increasing registration of

IPR for SMEs. the creativity produced by SMEs be-

comes legally protected and has the potential to have

great competitiveness both in the national market and

international markets.

ACKNOWLEDGEMENTS

The author would like to send the gratitude to The Di-

rectorate of Research and Community Development

Ministry of Research, Technology and Higher Educa-

tion who funded this Research in 2019.

REFERENCES

Asri, D. P. B. (2018). Pengembangan industri kreatif umkm

asal yogyakarta melalui pendaftaran” jogja co brand-

ing”. Kosmik Hukum, 18(2).

Druker, P. (2005). Intellectual property innovation and new

product development. WIPO Magazine/July-August,

Geneva, Issue, (4).

Hamdani, J. and Wirawan, C. (2012). Open innovation im-

plementation to sustain indonesian smes. Procedia

Economics and Finance, 4(1):223–233.

Herlinda, W. D. (2017). Perlindungan hki, agar inovasi

umkm indonesia tak dicuri orang asing.

Idris, K. Intellectual property: a power tool for economic

growth (2003) wipo.

Lall, S. (2003). Indicators of the relative importance of iprs

in developing countries. Research Policy, 32(9):1657–

1680.

of Malaysia, I. P. C. (2019). Perbadanan harta intelek

malaysia.

Saleh, A. S., Caputi, P., and Harvie, C. (2008). Perceptions

of business challenges facing malaysian smes: Some

preliminary results.

Sikka, P. (1999). Technological innovations by sme’s in

india. Technovation, 19(5):317–321.

Sukarmijan, S.-S. and Sapong, O. D. V. (2014). The impor-

tance of intellectual property for smes; challenges and

moving forward. UMK Procedia, 1:74–81.

Information Technology for Easy Access to IPR Registration for SMEs in Yogyakarta