What is the relationship between intellectual property rights
and economic development?
By : Krissantyo Adi
Indonesia is an archipelago comprising thousands of islands. With an estimated population over 252 million people, Indonesia is the world’s fourth most populous country. Indonesia consists of hundreds of distinct native ethnic and linguistic groups. More than 300 ethnic groups and 746 linguistic groups. It encompasses 34 provinces, and every provinces are made up of regencies and cities which has a diverse cultural treasures, rich of arts and culture industry to increase a strong economic community.
The biggest fourth most population country in the world with over 252 million people, surely become one of strengths factor of a country with many opportunities for further growth. However, Indonesia still have a challenges and weaknesses in many factors such as huge infrastructure gaps, low financial, a weakly education and poorly performing innovation system.
Intellectual property rights are important for building up these innovation capacities. We know innovation plays a pivotal role in economic development but, Indonesia as developing countries have recognized that innovation is not just about high-technology products, but that innovation capacity has to be built into the early stages of the development process to gain the learning capacities that will allow adoption of foreign technology requires adaptation to the local context also need innovation capacity to address developmental challenges specific to local contexts.
With diverse cultural treasures, rich of arts, culture industry and socio-economic context of Indonesia and has special characteristics of its innovation system are crucial as the capacity of intellectual property rights to support innovation in this country. For an example Indonesia has Innovators in traditional and informal sectors while traditional “batik” textiles, traditional furniture and many of indication geographic product have export potential but only a few batik factories, furniture manufacturers or indication geographic product have developed successful branding strategies.
Traditional producers are often not aware of business opportunities based on product differentiation and branding. Moreover, the widespread perception of limited knowledge of patent, copyright, industrial design and trademark it’s so weak. Also, industry associations are not actively involved to support firms that are generally small, have limited resources, and lack sufficient skills to develop and implement these strategies on their own.
Since signing the Trade-Related Intellectual (TRIPs) Agreement in 1994, Indonesia became a member of the TRIPs and the World Trade Organization (WTO) since 1 January 1995. Nowadays, under that agreement, Indonesia has been harmonize and revise several of its intellectual property laws. Such as Trade Secret law 30 Year 2000, Industrial Design Law 31 Year 2000, Layout Design Intergrated Circuit Law 32 Year 2000, Copyrights Law 28 Year 2014, Patent Law 13 Year 2016 and Trademark and Geographical Indication Law 20 Year 2016.
Directorate General of Intellectual Property Rights (DGIPR) as the governmental institution which has the authority to administer and develop the intellectual property rights system in Indonesia. The institution is in charge of granting and promoting the use of copyright and industrial property rights. Sometimes some people consider intellectual property rights are not necessary. However, the intellectual property rights are in fact useful to protect the businessmen from the possibility of unauthorized use of the rights.
Intellectual property rights can creates exclusive rights for holders, which can result in substantial monetary rewards if the creativity and innovation of invention meets with market and also serving the public good with success. We know the intellectual property rights purpose to provide an incentive for people and businesses to create new creativities or inventions, while allowing others to create new ideas to improve those inventions in fields relating to technology (patents), the arts (copyright), design (industrial design) and business (trademarks). Therefore, it is important for rights holders, the trader or exporter to prepare the products in relation to the intellectual property rights before conducting trade or export activities that the products receive legal protection.
Legal protection of intellectual property rights has effect to contributes enormously every country economies in the world. Dozens of industries across our economy rely on the adequate enforcement of their patents, copyright, industrial design rights and trademarks, while consumers use intellectual property rights to ensure they are purchasing safe, guaranteed products. We believe intellectual property rights are worth protecting and have tight relationship between economic development of country, both domestically and abroad.