The Urgency of Industrial Design Development in Indonesia through
Hague System Ratification
Cita Yustisia Serfiyani
Law Faculty Universitas Wijaya Kusuma Surabaya, Dukuh Kupang Barat XXV / 54
Keywords: Industrial design, IPR, Hague system
Abstract: Industrial design protection is becoming increasingly important as the global competition grows. Industrial
Design in Indonesia is currently regulated in Law No. 31 of 2000 concerning Industrial Designs to provide
legal certainty and encourage the public to register their industrial designs. However, in practice, business
actors, especially MSMEs, still think that industrial design registration is not a necessity and is not a priority
due to the complexity of the bureaucracy. The constitutive registration of Industrial Designs in Indonesia
is still not effective due to the long duration. There are still obstacles when the industrial design will be
applied abroad, and there are still violations of the law against industrial designs that have been registered.
The concept of unification of industrial design registration in the Hague agreement on international
registration rules needs to be immediately implemented in Indonesia into the Industrial Design Bill to
overcome these problems, although it is necessary to examine Indonesia's readiness for this digital system.
This legal research will discuss legal protection and the development of industrial design in Indonesia
through the Hague system to advance industrial design on a national and global scale.
1 INTRODUCTION
The creative economy is predicted to be the mainstay
of the economy in the future. Protecting industrial
designs is very important, especially with the
development of technology and global market trends.
Protection of industrial designs can help increase
creativity and product diversity in the manufacturing
and craft sectors (Yuliasih, 2018). Industrial Design
Protection gives the design owner the right to prohibit
unauthorized use or, with his permission and avoid
other parties without permission to make, sell or
import products that industrial design rights have
protected.
Business actors, especially SMEs, still think that
industrial design registration is unnecessary and not a
priority. Registration has always been considered as
complicated with bureaucracy, cost burden and takes
a long time. Productivity of Industrial Design in
Indonesia in 2018 and 2019 is low compared to other
types of IPR. According to data on Directorate
General of Intellectual Property (DGIP), the highest
applications come from applications for Marks with a
total of 130,679. The second is Patents with 18,569
copies, the third for Copyrights with 30,791 and
Industrial Designs with 6,600. In the statistics on
Industrial Design applications, in 2018, there were
only 3,812 industrial design products registered at the
Directorate General of Intellectual Property (KI). In
2019 there was a significant decrease to only 2,788
products. Looking further, most of the statistical lists
of Industrial Design Applicants from 2018 - 2019 are
almost 95% dominated by non-UMKM, and 5% of
applications come from MSMEs. It can be seen that
design insight and industrial design productivity in
Indonesia are still shallow.
The design improved the value of an item higher
in market competition even though it seems
complicated to determine the price with numbers. In
a competitive global market, where many product
choices can replace each other, consumers often
choose according to the design they like or stand out
the most. So, the design serves to convey the
impression or the main idea of their product. Such as
what the product can do and how the product
symbolizes cultural values and aesthetic qualities
expected from a product (Haines, 2017).
The Hague Agreement is a system that allows
design owners to centrally register their designs with
several countries and intergovernmental
organizations. This method provides convenience
because it only passes through one door, one
146
Serfiyani, C.
The Urgency of Industrial Design Development in Indonesia through Hague System Ratification.
DOI: 10.5220/0010798500003317
In Proceedings of the 2nd International Conference on Science, Technology, and Environment (ICoSTE 2020) - Green Technology and Science to Face a New Century, pages 146-152
ISBN: 978-989-758-545-6
Copyright
c
 2022 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved

language, and one currency It is cost-efficient because
the holder of industrial design rights does not need to
make a separate application for registration of the
design to several other countries. Meanwhile, the
Locarno Agreement is an agreement intended to
provide a classification of designs. It aims to
developing more varied industrial design products
and having the same and clear standards. This
classification is arranged progressively with periodic
revisions following the times. The classification is
applied by WIPO and the Benelux Design Office in
administering the Hague treaty.
Indonesia has only ratified 3 (three)
international agreements in the field of IPR. The first
is the TRIPS/WTO Agreement which was ratified
through Law Number 7 of 1994. The second is the
Paris Convention 1883 (Industrial Property) ratified
by Presidential Decree Number 15 of 1997. The third
is the Berne Convention 1886 (Copyright), ratified by
Presidential Decree Number 18 of 1997. Based on this
background, this study intends to examine and
identify legal protections for industrial designs as part
of the IPR applied in Indonesia to assess the urgency
of implementing an international industrial design
registration scheme following the Hague System.
2 RESULTS AND DISCUSSION
2.1 The Problematics of Industrial
Design Rights Registration in
Indonesia
Industrial Design in Indonesia is currently protected
by Law no. 31 of 2000. The Industrial Law Design as
a follow-up to the ratification of the Agreement
Establishing the World Trade Organization through
Law no. 7 of 1994. The main design objective of
Industrial law is to improve and protect IPR related to
the shape, configuration or ornamentation of an item
that contributes to the development of industry and
handicrafts (Rahmi Jened, 2010). WIPO defines
industrial design refers to the right granted in many
countries, according to a registration system, to
protect the original, ornamental and non-functional
features of a product that result from design activity.
The design must meet the requirements for
novelty and originality to be protected by industrial
design rights in Indonesia. However, these two
conditions are not related to function. Industrial
Design Protection is not associated with or protects
the product's usability, function, or technicality
(Widyaputri, 2010). So, to be covered by the law, an
Industrial Design must be new and visible. Industrial
design tends to be a total aesthetic value so that any
technical characteristics that apply to the design are
not protected (Soeparman, 2009).
Protection of Industrial Designs in Indonesia is
still intended for intact Industrial Designs. In contrast
to the trend in developed countries with a partial
system. Industrial design tends to be a comprehensive
aesthetic value so that any technical characteristics
that apply the design are not protected. The Partial
Industrial Design Registration system assumes that an
Industrial Design does not involve an entirely new
creation. Sometimes what is produced is not new;
only the ornaments or decorations are unique. In
addition, the design part of a product being developed
is not necessarily a part that can be disassembled but
can be a part that cannot be disassembled.
The subject of Industrial Design relates to the
party entitled to obtain the Industrial Design Right.
The party is the Designer or the Industrial Design
Right Holder who receives the right from the
Designer. The main difference between Industrial
Design and other types of intellectual property rights
is that it can be reproduced and is very suitable for
large companies and SMEs. If they receive legal
protection of their industrial designs properly, it can
benefit their production and export levels. Therefore,
the Industrial Design Right holder has the Exclusive
Right to exercise the Industrial Design Right they own
and prohibit other people without their consent from
making, using, selling, importing, exporting, and
distributing the goods that are granted the Industrial
Design Right. Granting rights to other parties can be
done through inheritance, grants, wills, agreements,
or other causes.
Industrial Design Registration in Indonesia goes
through a long process. The first step begins with a
written application for registration in Indonesian to
the Directorate General of Intellectual Property
Rights. The registration system of Industrial Design is
constitutive. Registration is an absolute must before
industrial design rights occur. The requirements that
must be met before submitting a design registration
application consist of formal and material
requirements. Standard requirements consist of the
obligation to make a written statement by stating the
identity along with proof of design ownership, a
replica of the design of the goods, the deed of
establishment of a legal entity, a power of attorney if
needed, as well as proof of payment for registration.
The material requirements consist of novelty,
practical, functional aspects, not included in the list of
exceptions to obtain industrial design rights. The
The Urgency of Industrial Design Development in Indonesia through Hague System Ratification
147

creator is a subject who has the right to register the
work.
If all of these requirements are simplified, when a
design is objected to, and a lawsuit is filed, a new
certificate can be obtained after a total duration of
approximately 18 months. Not to mention the costs
that must be incurred during a relatively long time.
This encourages business actors to override the
urgency of registering Industrial Design Rights. Even
business actors, both MSMEs and non-SME business
actors, who comply with the administrative order for
the registration of the Industrial Design Rights and
then want to expand the market abroad to strengthen
Indonesia's creative market and earn foreign
exchange, will encounter other problems. MSME
entrepreneurs will only be able to register their
designs in a few countries, either because of the
complexity of the procedure or the high cost that
differs from the standard price in rupiah. The
complexity of the registration process in a country
does not seem to guarantee legal protection for
creators because there are still cases of duplication of
industrial designs that have been registered by a
creator in a country but are also registered by other
creators in other countries, either due to accident or
an element of intent.
The problems mentioned above, such as the
complexity of registration and the violation of
industrial design rights on two products from different
countries, are encountered by Indonesian creators and
other countries, for example, in the case of the bogo
helmet industrial design rights owned by Toni, an
Indonesian citizen in collaboration with the
Malaysian company Bo Go Optical Sdn Bhd. The
industrial design rights are registered at the
Directorate General of Intellectual Property Rights of
Indonesia, valid from August 3, 2007, to August 3,
2017, with registration number ID 0012832. The
license rights owned by Bo Go Optical Sdn Bhd are
to produce and print helmet glass industrial designs
and their distribution in Indonesia.
Therefore, WIPO seeks to facilitate the flow of
international registration with the idea that an
industrial design right does not have to be registered
first in the country of origin of the applicant/creator
following the rules of the country of origin and then
re-registered when the industrial design right wants to
be developed in another country. The simplification
step of WIPO is a single registration for an industrial
design right originating from a country to be validly /
legally in the land of origin and internationally. This
scheme is then called the Hague system (Hague
System). Of course, only countries that have agreed
and ratified the Hague Treaty can apply this
registration method. Currently, several countries have
ratified the Hague Treaty. Singapore is the only
ASEAN country that has received the most design
protection through the Hague System in 2019 (WIPO,
2020).
Figure 1. The improvement rate of Industrial Designs
registration through the Hague System
Source: https://www.wipo.int/ipstats/en/
The quality of intellectual property protection will
have an impact on the national economic growth of a
country. The advantages of the Hague system include,
the IPR office will be freed from the burden of formal
inspection, data entry, publication, issuance of
registration certificates, all of which are the
responsibility of the International Bureau managed by
WIPO. An advantage in the main feature of the Hague
system is its simplicity which allows rights owners to
obtain protection for their designs with minimal
formalities. Fees in the Hague system will be effective
because it will be set in one currency. The economic
advantage that Indonesia will obtain if it has ratified
the Hague agreement is that the government can
provide full benefits to creators thanks to the use of
the Hague registration system to distribute or license
their designs to more countries easily cheaply.
The national interest must remain the main focus
to ratify the Hague Treaty and adopt it into national
regulations. The new Industrial Design Law must
later be used as a barometer for the development of
Design Policy. As part of the international community
and a member of the World Trade Organization
(WTO), Indonesia's global interests should also not be
ruled out.
Indonesia may choose to become a "Receiving
Office/Transmitting Office" (intermediary office) or
not. Suppose Indonesia decides to become an
intermediary office. In that case, Indonesia must be
ready in terms of the online system and its filing
because the primary key to this system is that the
implementation of the system must be fast but
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straightforward. If the Intellectual Property Office in
Indonesia does not control it, it can slow down the
application process. However, it is undeniable that the
implementation of the new system in Indonesia will
encounter many difficulties. So, it is essential to have
socialization with creative industry players and
related organizations.
In the Industrial Design Bill, there are several
changes related to the protection of industrial design
rights without registration, changes to the protection
period, and rules regarding previous users. One of the
new approaches included is "sui generis design",
which applies 2 (two) types of protection, namely
Industrial Design Rights without registration and
Industrial Design Rights through registration.
Protection without registration has a period of 3
(three) years from the date of publication. The
requirements that are met are novelty and originality,
while the protection of industrial designs with a patent
approach or through registration will have a period of
10 (ten) years according to the contents of Article 5
paragraph (1) of Industrial Design Law. However, by
ratifying the 1999 Geneva Act a minimum of 15
years. Penerapan Geneva Act juga memberikan
dampak positif terhadap beban keuangan negara.
Suppose many creative industry players register their
designs. In that case, it will provide new revenue for
the state through Non-Tax State Revenue (PNBP)
first because this system allows extending a registered
industrial design to occur. Second, with Indonesia
becoming a member country of the 1999 Geneva Act,
the revenue comes from international registration,
making Indonesia a destination country.
2.2 Legal Protection against Industrial
Design Creators in Indonesia
through the Hague System
The Hague Agreement, also known as the Hague
System, is a system that allows design owners to
register their designs centrally / centrally to
intergovernmental organizations. This method should
provide convenience because it only passes through
one door, one language, one currency and is cost-
efficient because industrial design rights holders do
not need to register their designs to several other
designated countries separately.
There are three kinds of Hague Treaties, namely
the London Act 2 June 1934, the Hague Act 28
November 1960 and the Geneva Act 2 July 1999. The
three agreements are carried out autonomously and
entirely independently. The London Act 1934
requires design owners to register their designs with
the International Bureau of Industrial Property in
Berne. An assessment can be made after the applicant
has submitted their product, image, photo or other
graphic representation. Registration is done in
French.[ Art. 2 , London Act 1934. ] Registration
under the Hague Act 1960 is done directly through the
International Bureau (WIPO) or the IPR office in the
respective country that has become a member of the
Hague Act 1960. The application is accompanied by
a photograph or design representation. Registration is
done in English and French. The protection period is
only 5 (five) years and can be extended for 5 (five)
years. This system prioritizes national law, so if the
destination country's national law regulates more
protection than the provisions in the 1960 Hague Act,
it must be adjusted.
The following are some of the requirements to be
able to apply for registration under the Hague Act
1960, among others:
a. Is a citizen of a member country or an
intergovernmental organization within a member
country such as the European Union, African
Intellectual Property Organization.
b. Have a domicile in the territory of a country that is
a member;
c. Have a real, practical and commercially established
industry within the territory of a member country.
The Hague system adheres to Limited Protection,
which means that protection only applies within the
country that provided it. This is the principle of
territoriality known in the Paris Convention
(Widyaputri, 2010). The Hague system has detailed
the standard content of registration applications.
Among these are the main languages are English,
French, Spanish. Electronic registration (e-filling) is
directly submitted to WIPO without the need to go
through national registration. Application filling can
be done in 2 (two) ways, namely direct and indirect.
The direct filling is through the WIPO International
Bureau.
The international application may be charged for
3 (three) things (in Swiss Francs), namely Base Fee,
Publication Fee, for each member country to which it
is addressed, adjusted conditions apply for standard
fees and individual fees. Payment schedules and
automatic fee calculations are available on the WIPO
website. Everyone who carries out international
registration of industrial designs without proof of
reverse is considered the legal owner of the work
because the international registration is declarative.
The next step is to publish online through WIPO's
International Designs Bulletin. The time required is
approximately 6 (six) months after the international
application is registered, unless the applicant requests
The Urgency of Industrial Design Development in Indonesia through Hague System Ratification
149

priority or delay. One of the main points is that the
WIPO International Bureau does not assess the
novelty of the design. He has no right to refuse the
application for reasons related to the exclusive
authority of the Intellectual Property office in each
destination country.
Publication in the WIPO online bulletin allows
free information for offices in each destination
country to identify the registered industrial designs.
The identification results are included in a substantial
examination adapted to the law in each country of
destination. One of the main characteristics of the
Hague System is that each destination country can
refuse the application for the protection of industrial
design rights within the scope of that country. This
can be done because this system prioritizes the
national law of each country. However, under the
1999 Law, any Party whose office is the Investigating
Officer, the law provides for the possibility of
opposition, may declare that the 6 (six) month refusal
period is replaced with 12 months. Any refusal of
protection will only apply to the entire territory of the
party whose office has issued the refusal. When there
is rejection in the territory of the destination country,
the applicant has the same corrective procedure as if
the application is made directly. Subsequent
processes are carried out automatically at the national
level; Objections to the refusal must be submitted to
the competent authority according to the applicable
law in that country. Thus, the timing, procedures and
conditions are left to the applicable laws of the
destination country without involving WIPO at this
stage. Rejection can be withdrawn, either in whole or
in part. For example, in the registration of several
industrial designs, protection can be accepted for only
a few designs. Suppose the refusal is not notified
within a specified period. In that case, the registration
will issue a statement granting protection to the
industrial design under the laws in force in each
destination country.
This International Registration is only valid for
the first five years. Applicants or holders of Industrial
Design Rights can renew with an additional 5 years
so that the total becomes ten years. The minimum
term of protection must be at least a total of 15 years.
The application for extension must be presented to the
WIPO International Bureau, followed by payment for
the extension. Renewal can be done electronically
through the (e-renewal) feature on the WIPO website.
Extensions can be made to all or part of the Industrial
Design registered in the international registration or
to the design registered in each destination country.
Several changes may affect international
registration, including:
a. Change of name and address of the applicant;
b. Change of ownership of the international
registration related to the application for protection
of industrial design rights (whether in the case of
the registered destination country or the object of
the industrial design);
c. Rejection of part or all of the object of industrial
design applied for;
d. Restriction of only part of the industrial design
determined later by the destination country.
The Hague System for the International
Registration of Industrial Designs arises from
simplicity and economical cost. This allows the
owners of industrial designs from member countries
to get protection with minimal expenses and
formalities. In particular, they become free without
the need to file a separate application to protect the
design in several countries of destination. Plus, the
complexity of the procedure and language differences
differ from country to country.
The Hague system also adds time effectiveness in
reminding the deadline for extensions, considering
that the deadlines in each country are also different.
This system also prevents the applicant from paying
various fees in foreign currencies and tends to be
detrimental. This means, under the Hague Agreement,
every one international application, made in 1
language, payment in a single set of fees, in 1
currency (Swiss Francs) and with one office (WIPO
International Bureau) will get a collection of national
rights from each country to become one. The
centralized system makes it easy if there is a change
in the name or address of the holder or a change in
ownership only for some or all of the appointed
parties. According to the WIPO annual report data,
there was an 8% increase in international application
registrations in 2019, reaching 5886 applications. At
the same time, the total number of industrial designs
included in the application section of the Hague
System also increased by 10.4%. Countries that
experienced a significant increase were dominated by
Germany, Italy and South Korea (WIPO, 2020).
The Hague system consists of 71 members and has
been implemented in 88 countries. The difference in
numbers is because the African Intellectual Property
Organization (OAPI) and the European Union (EU)
are members of the Hague. This indicates that OAPI
and EU member countries, for example, have
appointed Intergovernmental organizations in terms
of managing applications. In 2019, approximately
2,429 applicants from at least 65 countries registered
one or more designs with Hague international
applications. In 2019, 67.6% of all applicants for the
Hague system came from Europe. A total of 4,036
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applications were registered with a total of 16,339
designs. Germany is the country with the most active
members using the Hague system. Seen in 2019,
Germany took first place with a total of 772
applications consisting of 4,487 designs, followed by
South Korea with 2,736 designs, Switzerland (2,178),
Italy (1994) and the Netherlands with 1,376 designs.
Like Indonesia, China is in the stage of ratifying the
1999 Geneva Agreement and considering that China
is one of the countries with many products resulting
from industrial designs. To increase global market
penetration, in 2020, China plans to ratify the Hague
Agreement. For three years in a row, products from
"Samsung", an electronics company from South
Korea, ranked first on the list of significant applicants.
Samsung has 929 designs listed in the published
registration. Second place is the Netherlands' Fonkel
Furnituremarketing (859 designs), LG (598),
Volkswagen AG from Germany (536) and Procter &
Gamble from the United States (410). If you look at
the data on Industrial Design Applications from other
countries to Indonesia, it can be seen that there are
only around 2,670 applications. However, 1,784 came
from Indonesia itself. That means only about 886
pieces came from overseas applications (Ditjen KI,
2020).
The Hague Treaty is appropriate when applied
within the European Union. This is because the
European Union was the first to develop legal
unification in intellectual property rights among
European countries. The UK is a member of the
European Union, which has just ratified the Hague
Agreement in 2015. The UK is aware that although
the EU is an intergovernmental organization that is a
member of the Hague System, individually, the UK is
not a member state. Companies wishing to use the
Hague system to obtain the protection of their
industrial designs in the UK must register it with all
member states of the European Union (Intellectual
Property Rights Office of UK, 2020).
In contrast to the implementation of the Hague
System in America. The United States ratified the
Hague Agreement in 2013. The US Patent and
Trademark Office (USPTO) classifies patients into
two, namely, based on function and design. The first
type is to protect the way innovation is used and how
it works. Meanwhile, the second type covers the shape
and appearance of a product. So it can be said that
America classifies designs as another category
protected through the Patent Act. America
experienced a surge in acceptance of industrial design
registrations in its country. America received product
registrations from other countries in 2009 before
becoming a member of the Hague System as many as
156.321 products, and in 2018, it became 368,172
products. This can happen because, for example, a
designer applying to the European Union can also add
a small fee to register it with the United States. The
reason is that the American market is a potential
destination in marketing a product.
The Hague system only regulates the registration
procedure to be more effective and unified without
changing the legal substance in each country,
evidenced by the difference in terms applied in
America and the European Union. In America,
because it is tied to patent protection, the requirement
for a patent design to be accepted is that it must be
"new, not primary, original and only in the form of
ornaments" (Monseau, 2012). So, it can be seen that
the required conditions seem very complicated. While
the European Union allows a more comprehensive
design in the form, product packaging and emblem.
The European Union looks more severe in modifying
the Copyright approach in the protection of Industrial
Designs.
Therefore, it is necessary to strengthen the
database and network owned by DJKI as the
administrative manager of industrial design
registration. The implication of this online and
electronic registration for the community is that it
makes it easier for people from various parts of the
country who want to obtain industrial design
protection for their work without the need for
additional fees to come to Jakarta or the Regional
Office of the Ministry of Law and Human Rights of
the Republic of Indonesia, this system is also
considered a user friendly because there is no need for
face-to-face contact between the applicant and DJKI
employees, which can minimize the practice of
extortion that is often complained of by the
community using IPR services. So in this Hague
system, one application replaces a series of
applications that should be submitted separately to
each country or regional office for which the
industrial design registration application is intended.
This facility is an essential element in international
commercial cooperation and can assist in increasing
trade.
3 CONCLUSIONS
Indonesia needs to immediately ratify the contents of
the Hague Agreement in the Geneva Act 1999. The
same applies to trademarks that the Madrid Protocol
and copyrights have protected that the Bern
Convention protects. Indonesia's participation as a
member country can be a vital sign to the international
The Urgency of Industrial Design Development in Indonesia through Hague System Ratification
151

community that Indonesia is willing to collaborate in
enforcing intellectual property policies. Indonesia's
participation as a member country later can be a good
sign that Indonesia is ready to implement intellectual
property policies, help prevent plagiarism, and reduce
the possibility of violating industrial design rights in
Indonesia. The Indonesian government needs to
revise Industrial Design Law by adding provisions
adapted from the ratification of the Hague Treaty to
adapt to the times, strengthen the global, national
industrial design market and adjust the period of
protection.
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