Understanding Trademark Protection for MSMEs as a Strategy to Scale Up in the Export Era

As global trade becomes increasingly competitive, Indonesian Micro, Small, and Medium Enterprises (MSMEs) are no longer confined to domestic markets. The advancement of digital transformation, the proliferation of international trade agreements, and easier access to export platforms have collectively expanded opportunities for businesses to reach cross-border consumers. However, these opportunities are accompanied by emerging challenges, most notably, how to ensure that local products are not only competitive in global markets but are also supported by robust legal protection in destination jurisdictions.

At this juncture, trademarks as a component of Intellectual Property Rights (IPR) play a highly strategic role. A trademark is no longer merely a distinguishing name or symbol; it constitutes an intangible asset embodying both economic value and business reputation. In the context of export activities, trademarks serve as representations of quality, credibility, and trust in the international marketplace. Without adequate legal protection, MSMEs risk losing their proprietary rights over their own marks when entering foreign markets.

Commercialization and Valuation Strategies of Trademarks to Drive Export Growth

A common misconception among MSMEs is to treat trademarks solely as branding elements rather than as valuable economic assets. Under Indonesian law, however, registered trademarks may be commercially exploited through various schemes, including licensing, franchising, and assignment of rights.

Pursuant to Article 1 point 5 in conjunction with Article 42 of Law Number 20 of 2016 on Trademarks and Geographical Indications (“Trademark Law”), trademark owners are granted exclusive rights to use their marks or to authorize third parties to do so. These exclusive rights create substantial monetization opportunities, particularly in the context of international market expansion.

Furthermore, Government Regulation Number 24 of 2022 on the Creative Economy (“GR 24/2022”) reinforces the position of intellectual property as a financing asset. Article 4 paragraphs (1) and (2) of GR 24/2022 stipulate that:

1. The Government facilitates Intellectual Property-Based Financing Schemes through banking and non-banking financial institutions for Creative Economy actors;
2. Such facilitation is implemented through:

1. the utilization of economically valuable intellectual property; and
2. the valuation of intellectual property.

These provisions explicitly recognize intellectual property, including trademarks, as assets that may serve as fiduciary collateral to obtain financing from financial institutions. This marks a significant paradigm shift: the value of trademarks is no longer considered abstract but can be quantified and assessed financially.

For MSMEs, the implications are substantial. Through proper trademark valuation, businesses can:

1. Enhance bargaining power in export partnerships;
2. Attract investors and global distribution partners; and
3. Access financing based on non-physical assets.

The Directorate General of Intellectual Property (DGIP) has also emphasized that a trademark certificate is not merely a legal protection instrument but an economic asset capable of strengthening global competitiveness. Accordingly, scaling up MSMEs requires not only improvements in production capacity and product quality but also strategic management of trademarks as instruments of commercialization and cross-border business expansion.

Trademark Registration as the Legal Foundation and Gateway to Export Markets

Trademark registration is a critical step that is often overlooked by MSMEs, particularly in the early stages of business development. Indonesia adheres to the first-to-file principle, meaning that trademark rights are granted to the party that first files the application.

This principle is affirmed in Article 3 of the Trademark Law, which provides that rights over a trademark are acquired upon registration. Consequently, without registration, business actors lack strong legal protection against unauthorized use of their marks by third parties.

Moreover, the Trademark Law requires that a mark possess distinctiveness to qualify for registration. This element is particularly crucial in export contexts, as unique and distinctive marks are more easily recognized in global markets.

In practice, there have been numerous cases where Indonesian local trademarks were registered first by foreign entities in export destination countries. As a result, MSMEs lost the right to use their own marks in international markets. The Trademark Law also provides mechanisms for simultaneous trademark protection across multiple jurisdictions, in line with its objective to support international trade and safeguard national brands globally.

From a business perspective, trademark registration offers several strategic advantages:

1. Ensuring legal certainty in export contracts;
2. Enhancing credibility in the eyes of international buyers; and
3. Facilitating market expansion through global distributors.

In essence, trademark registration is not merely an administrative formality but a fundamental pillar in building trust and securing access to international markets. The transformation of MSMEs toward global participation must be accompanied by strengthened legal compliance and intellectual property protection strategies. Trademarks should be positioned as core business assets and managed professionally.

Practical steps MSMEs can undertake include:

1. Promptly registering trademarks prior to market expansion;
2. Conducting trademark audits and valuation as part of business strategy; and
3. Leveraging IP-based financing schemes as recognized under national regulations.

Ultimately, the success of Indonesian MSMEs in global markets is determined not only by product quality but also by the strength of trademarks managed strategically.***

Discuss Your Global Trademark Protection Strategy Before Entering International Markets

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Regulations:

• Law Number 20 of 2016 on Trademarks and Geographical Indications (“Trademark Law”).
• Trade-Related Aspects of Intellectual Property Rights (“TRIPs”).
• Government Regulation Number 24 of 2022 on the Creative Economy (“GR 24/2022”).

Reference:

• Merek sebagai Reputasi Perlindungan dan Jalan Menuju Pasar Global. Direktorat Jenderal Kekayaan Intelektual (DJKI). (Accessed on 1 April 2026 at 14:40 WIB).
• Rahma, Anistya Pratista & Cintya Sekar Ayu. Sengketa Hak Merek “Bensu” sebagai Tolak Ukur Urgensi Mempertegas Prosedur Pendaftaran Merek di Indonesia. ALSA LC UGM Law Journal: Business Law, Volume 1(1). (Accessed on 1 April 2026 at 14:55 WIB).