"Haven For Counterfeit International Branded Bags": Challenges for Trademark Protection in Batam City, Indonesia

Syarief, Elza and Shahrullah, Rina Shahriyani and Moniaga, Yenny (2017) "Haven For Counterfeit International Branded Bags": Challenges for Trademark Protection in Batam City, Indonesia. In: Conference on Business and Social Sciences, 4-5 Desember 2017, Bangkok, Thailand.

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Abstract

Batam City of the Riau Island Province is the Indonesian territory which is very closed to Singapore and Malaysia. Due this geographical proxy, imported goods, including international branded bags such as Channel, Gucci, Prada, Hermes can be obtained easily from overseas in Batam City. Unfortunately, most of them are counterfeit bags which are commonly referred to the term ‘KW bags’. In 2016 the Indonesian Government has renewed the Trademark Law by enacting Law No.20 of 2016 concerning Trademark and Geographical Indications to replace the former Law No.15 of 2001. As a member of WIPO, Indonesia must not differentiate between the protection of national and international trademarks. However, KW bags from China have been circulated and sold in Batam City. This research analyses the effective implementation of the Trademark Law in Batam City. It found that KW bags have been legally imported into Batam City from China since 2005 because they have met all the required documents for import. Batam City police have no authority to investigate the KW bags because a trademark infringement is qualified as a warrant complaint under the Trademark Law. It also found that most respondents have bought the KW bags because their cheaper price and their appearance is very much the same as the original ones. Yet, they mostly understand that the KW bags violate the Trademark Law and disadvantage the owner of the marks.

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