Powered by Rouse

Powered by Rouse, the emerging markets IP firm. www.rouse.com

Tuesday, November 25, 2014

Indonesia's online boom

Indonesia is rapidly becoming one of the largest online markets in the world. The new government plans to double the number of Indonesians online to 150 million in the coming year. Indonesia already has 70 million Facebook users and is a major Twitter market. Rovio has launched Angry Birds games worldwide from Jakarta. Facebook CEO Mark Zuckerberg last month visited Indonesia and met the President. Online shopping platforms like Lazarda and Toko Bagus are booming. Japan’s SoftBank Corp. and Silicon Valley’s Sequoia Capital invested $100 million into Indonesian e-commerce platform company PT Tokopedia this year. A new tech startup hub.id, has been lauched with government funding. Telkom Indonesia plans investments with Fenox VC, a Silicon Valley-based venture capital firm.

Challenges exist. Indonesia is dominated by smartphones (35 million+) not computers, limiting functionality. There is a longstanding history of policy initiatives failing over time. More computer science and programming in education is critical, along with as engineering. R&D is terribly low tech and universities do not have Technology Transfer Offices (TTOs) to commercialise IP. IP protection is regarded as weak, particularly in enforcement. Few online disputes get resolved through the legal system (for example the longstanding ebay.co.id dispute). 

A lot needs to be done to build an strong online industry and a major part of that will be improving IP protection. The new copyright law is a start but the ministry of communications' online takedown processes will be critical. With numerous stalled attempts to break into the knowledge economy in recent history the new government will need to pull out all the stops to make it work.

Monday, November 24, 2014

Fake Drugs in S.E. Asia

At a conference in Manila this week a regional pharmaceutical industry association, the Pharmaceutical Security Institute - Asia Pacific (PSIAP) warned consumers and healthcare professionals to watch out for fake medicines.
 
According to PSIAP the major countries in South East Asia to have a higher prevalence of fake pharmaceuticals are (according to PSIAP data):

A. Indonesia, 141 incidents 
B. Philippines, 50 incidents

Of course other major countries like China, India and Japan featured more incidents according to the surveys. Indonesia as the largest Pharma market in the SE Asian region naturally has the largest proposition of fakes. 

PSIAP's director Samson Chiu said the top types of fake drugs being sold are cardiovascular, metabolism and anti-infective medicines.

Friday, November 21, 2014

State of enforcement and the new Indonesian government

The new government seems to be setting new IP policies. Apparently there is a plan to increase the size of IP industries in the Indonesian economy up from 2% to 6% of GDP. Consequently the head of the IP Office announced this week that they will introduce new IPR enforcement measures in 2015.  This will include increased efforts to combat IP violation as well as increased sentences, more arrests and sanctions against landlords allowing fakes to be sold on their properties.

He referred in his announcement to copyright and a close reading of the comments suggests he is referring to the copyright law amendments passed under the last government.

The key is not new laws however it is practical enforcement. Until the police conduct raids  regularly without corruption, until the PPNS can build a bigger team that can conduct fast effective raids, until cases are passed to prosecutors for criminal prosecutions, then Indonesia will remain an enforcement laggard.

Some recent Police statistics show the conducted very few IP cases in recent years:



No.

Intellectual Property Cases

Year

2012

2013

2014

1

Copyright

109

188

60

2

Patent

-

5

1

3

Trademark

96

64

35

4

Industrial Design

1

9

2

5

Trade Secret

1

-

-

Total

207

266

98

There are specific numbers broken out for DVD work for the copyright industries. Much will be software.


No.

Optical Disc (Copyright) Cases

Year

2012

2013

2014

1

Optical disc cases

87

137

23

2

Optical discs seized

388.381 pcs

321.185 pcs

90.985 pcs

3

Duplication equipment seized

13

21

11

The IPO investigation team’s cases were as follows.



No.

Intellectual Property Cases

Year

2012

2013

2014

1

Copyright

6

4

2

2

Patent

2

-

1

3

Trademark

23

15

6

4

Industrial Design

6

6

-

Total

37

19

9

Overall this shows a very low level of IP enforcement activity. By comparison in the Philippines and Thailand thousands of IP violation cases per year are brought. Indonesia’s cases are in the low few hundreds.