In today’s increasingly competitive business landscape, a brand is more than just a visual identity. It is a strategic asset that represents a company’s reputation, quality, and consumer trust. As a brand gains recognition, one common risk that arises is the possibility of other parties attempting to “ride on its reputation” by imitating or using a similar mark. Such practices not only cause financial losses but may also damage a company’s image and undermine public trust in the business.

Trademark infringement in Indonesia is not a new phenomenon. Given that Indonesia adopts the first-to-file principle in its trademark registration system, trademark owners must take proactive steps to protect their rights. The question is: how can businesses determine whether their brand is legally being imitated, and what legal actions can be taken against such infringement?

SIP Law Firm analyzes these issues from the perspective of Intellectual Property Law (IP Law) in the following article.

Is Your Brand Really Being Imitated? Understanding the Legal Criteria

Before taking legal action, it is essential to determine whether the conduct of another party fulfills the elements of trademark infringement under Indonesian law. The primary legal basis is Article 21 paragraph (1) of Law Number 20 of 2016 concerning Trademarks and Geographical Indications (“Trademark Law”).

Under this provision, a trademark application shall be rejected if the mark has similarities in its essential part or in its entirety with:

Another party’s registered trademark for similar goods and/or services;
Another party’s well-known trademark for similar goods and/or services;
Another party’s well-known trademark for dissimilar goods and/or services under certain conditions; or
A registered geographical indication.

The term “similarity in its essential part” refers to similarities that may create the same overall impression in the minds of consumers, whether visually, phonetically, or conceptually. In other words, infringement does not require a 100% identical im itation. Even minor differences do not automatically eliminate the possibility of infringement if consumers may still be confused as to the origin of the goods or services.

For example, the use of a name, logo, dominant color, or a combination of visual elements resembling a well-known trademark may constitute infringement if it has the potential to mislead the public. In practice, the assessment focuses on whether consumers with an average level of attention could mistakenly assume that the two brands originate from the same source.

Furthermore, through various decisions, the Indonesian Supreme Court has emphasized that “bad faith” is an important indicator in trademark disputes. If the party registering or using the mark is proven to have intended to benefit from another party’s reputation, such circumstances may strengthen the allegation of infringement.

Therefore, before proceeding further, trademark owners should conduct a comprehensive legal and commercial analysis to ensure that all elements of infringement are indeed satisfied.

Read to : Merek Belum Terdaftar? Ini Risiko Besar bagi Bisnis Anda

What Legal Actions Can Be Taken If Your Brand Is Imitated?

Where there are strong indications that your trademark has been imitated, several legal remedies may be pursued. The Trademark Law provides clear protection for registered trademark owners through both civil and administrative mechanisms.

Civil Lawsuit

Article 83 paragraph (1) of the Trademark Law provides that the owner of a registered trademark may file a lawsuit against any party unlawfully using a mark that is identical or substantially similar for similar goods and/or services. Such claims are filed before the Commercial Court and may include:

Claims for damages; and
Requests to cease all acts relating to the use of the infringing trademark.

The damages claimed are not limited to material losses. Trademark owners may also seek compensation for immaterial damages, including harm to business reputation and goodwill.

Preliminary Injunctions and Interim Measures

In addition to the main lawsuit, trademark owners may also apply for temporary court orders. Pursuant to Article 94 of the Trademark Law, the court may order:

The prevention of goods suspected of trademark infringement from entering commercial channels;
The preservation of evidence related to the infringement;
Measures to secure and prevent the destruction or disappearance of evidence; and/or
The cessation of infringement activities, including the production, distribution, and sale of infringing goods.

These measures are particularly strategic in preventing greater losses, especially when the infringement is ongoing and has the potential to expand further.

Administrative Remedies and Alternative Dispute Resolution

Aside from litigation, trademark owners may also pursue administrative and non-litigation measures, such as:

Filing objections or cancellation actions before the Directorate General of Intellectual Property (DGIP); and
Utilizing mediation or arbitration as alternative dispute resolution mechanisms.

As noted in various legal publications, non-litigation approaches may provide a faster and more efficient resolution, particularly where both parties are willing to negotiate in good faith.

However, the effectiveness of these measures largely depends on the willingness of the infringing party to resolve the dispute amicably. If no such intention exists, legal proceedings remain the primary option.

Many businesses assume that trademark infringement only results in compensation claims. In reality, the Trademark Law also imposes significant criminal sanctions on infringers.

Criminal Sanctions

Article 100 paragraph (1) of the Trademark Law stipulates that any person who unlawfully uses a trademark identical in its entirety to another party’s registered trademark for similar goods and/or services may be subject to:

Imprisonment for up to 5 (five) years; and/or
A fine of up to IDR 2,000,000,000 (two billion Rupiah).

Meanwhile, Article 100 paragraph (2) provides that the use of a mark having similarities in its essential part may result in:

Imprisonment for up to 4 (four) years; and/or
A fine of up to IDR 2,000,000,000 (two billion Rupiah).

These provisions demonstrate that the Indonesian legal system treats trademark infringement as a serious economic offense that harms not only trademark owners but also consumers and the broader business ecosystem.

Reputational and Commercial Consequences

In addition to legal sanctions, trademark infringement may significantly damage a business’s reputation. In the digital era, information regarding legal violations can spread rapidly and negatively affect public perception.

Various trademark dispute cases in Indonesia have shown that businesses involved in infringement may experience declining consumer trust and even public boycotts. This highlights that the risks of infringement are not merely legal in nature, but also commercial and reputational.

Potential Long-Term Losses

Trademark infringers may also face long-term consequences, including:

Loss of rights over the trademark being used;
High litigation costs; and
Operational disruptions due to seizu
re of goods or suspension of production activities.

Conclusion

Protecting a trademark is no longer optional—it is a necessity for every business. In today’s increasingly complex market environment, understanding Intellectual Property Law is essential to maintaining a competitive advantage and avoiding unnecessary legal risks.

If you believe your brand has been imitated, the first step is to conduct a proper legal assessment to determine whether infringement has occurred. Businesses should then utilize the available legal mechanisms, whether through alternative dispute resolution, civil litigation, interim measures, or criminal enforcement, to protect their rights.

On the other hand, businesses must also ensure that every branding element they use does not infringe upon the rights of others. Compliance with trademark law not only helps avoid sanctions but also strengthens the foundation of a trustworthy and sustainable business.***

Regulations:

Law Number 20 of 2016 concerning Trademarks and Geographical Indications (“Trademark Law”).

References:

Tips Bagi Pemegang Lisensi yang Mereknya Telah Didaftarkan Pihak Lain. HukumOnline. (Accessed on May 5, 2026 at 1:40 PM (WIB)).
Ramai soal Sengketa Merek “Geprek Bensu”, Bagaimana Aturan Hukumnya?. Kompas.com. (Accessed on May 5, 2026 at 2:10 PM (WIB)).
5 Kasus Sengketa Merek di Indonesia dan Penyelesaiannya, Dari Gudang Garam hingga Geprek Bensu. FH Unikama. (Accessed on May 5, 2026 at 2:42 PM (WIB)).

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