In today’s competitive global economy, owning a patent in Indonesia is only the first step. To fully capitalize on your invention, you need to turn your patent into a revenue-generating asset. This is where patent licensing becomes a powerful legal and commercial strategy.
By licensing your patent, you allow another party to use your protected technology under agreed terms, while you retain ownership. This opens up passive income opportunities, market expansion, and cross-border business partnerships—all without the need to invest in direct commercialization.
For international businesses, patent licensing is a proven tool to enter the Indonesian market legally, efficiently, and with reduced R&D risks. Whether you are a tech innovator, manufacturer, or investor, understanding how patent licensing laws in Indonesia work is essential for sustainable IP monetization.
What Is Patent Licensing and Why It Matters
Patent licensing is a legal agreement where the patent owner, or licensor, grants rights to a third party, or licensee, to use the invention for commercial purposes. In return, the licensee pays royalties or license fees.
Licensing benefits both parties.
- For patent owner (licensor), the benefits include:
- To earn income from the patent without losing ownership
- To gain access to new markets through local partners
- To strengthen the commercial value of the IP asset
2. For licensee (user), the benefits include:
- To legally use the technology without investing in development
- To speed up product launch and reduces legal risks
- To gain competitive advantage with proven innovation
In sectors like biotech, pharmaceuticals, manufacturing, ICT, and green energy, patent licensing is a key strategy for global expansion and product innovation.
Legal Requirements for Patent Licensing in Indonesia
Under Article 79 paragraph 1 of Law No. 13/2016 on Patent, amended by Law No. 65/2024, all patent license agreements must be registered with the Ministry of Law and Human Rights through the Directorate General of Intellectual Property (DGIP).
- To be legally binding against third parties, the license agreement must be:
- In writing
- Registered with DGIP
- Published in the Official Gazette
2. According to Government Regulation No. 36/2018, the license agreement must include:
- Date and place of signing
- Full names and addresses of licensor and licensee
- Object of the license (patent number and title)
- Type of license (exclusive or non-exclusive)
- Term and territory of the license
- Rights to sublicense (if any)
- Responsibility for paying the annual patent fee
The entire process is done online through the official DGIP portal, and applicants must upload the agreement and complete the required digital forms.
Fees for Patent License Registration in Indonesia
Based on Government Regulation No. 45/2024, the official fees are:
- Rp 1,000,000 for registering each patent license
- Rp 300,000 for obtaining a certified copy of the license registration
- Rp 1,000,000 for filing a compulsory license request
Foreign companies must ensure that all patent documents are valid and that the licensing contract is signed by authorized legal representatives and does not contradict Indonesian public order or applicable laws.
Also read: Memahami Strategi Komersialisasi Paten Melalui Lisensi
Why Register Your Patent License in Indonesia?
Registering your patent license in Indonesia provides critical legal protection and certainty for both parties. A registered license is:
- Legally enforceable in Indonesian courts
- Recognized by government authorities
- Strong evidence in any legal dispute
Failing to register the license could mean your agreement is unenforceable against third parties, leaving your IP rights exposed and limiting your ability to defend them.
Also read: Hati-hati, Hak Paten Bisa Dihapus karena Kelalaian Ini!
How Foreign Investors and Innovators Can Benefit
If you’re a foreign patent owner or multinational company seeking to enter or expand into the Indonesian market:
- Licensing offers a low-risk entry strategy
- You can partner with local companies while retaining your technology rights
- Legal registration ensures IP compliance and protection
By working with an experienced Indonesian IP lawyer or licensing consultant, you can navigate the legal procedures, avoid pitfalls, and ensure that your technology is commercialized lawfully.***
Also read: Maksimalkan Potensi Ekonomi Invensi Melalui Lisensi Paten
Consult an Indonesian IP Lawyer for Patent Licensing Support
A qualified IP attorney in Indonesia can assist with drafting or reviewing the license agreement, registering the license with DGIP, advising on royalty and sublicensing issues, and ensuring compliance with updated Indonesian patent regulations
Regulations:
- Undang-Undang Nomor 13 Tahun 2016 tentang Paten (“UU Paten”).
- Undang-Undang Nomor 65 Tahun 2024 tentang Perubahan Ketiga Atas Undang-Undang Nomor 13 Tahun 2016 tentang Paten (“UU Paten”).
- Pemerintah Nomor 36 Tahun 2018 tentang Pencatatan Perjanjian Lisensi Kekayaan Intelektual (“PP 36/2018”).
- Peraturan Pemerintah Nomor 45 Tahun 2024 tentang Jenis dan Tarif atas Jenis Penerimaan Negara Bukan Pajak (PNBP) yang berlaku pada Kementerian Hukum dan HAM (“PP 45/2024”).