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How local brands beat foreign namesakes in RI courts

In Indonesia, there is IKEA, and then there is IKEA. The popular Swedish furniture retailer lost its trademark to a company in East Java. First come, first served, but use it, or lose it in court.

 

Yohana Belinda (The Jakarta Post)
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Jakarta
Wed, July 12, 2023

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How local brands beat foreign namesakes in RI courts This undated illustration picture shows a gavel in a courtroom. (Pexels/Sora Shimazaki)

I

n Indonesia, there is IKEA, and then there is IKEA. The popular Swedish furniture retailer lost its trademark to an East Java-based rattan furniture maker, PT Ratania Khatulistiwa.

The latter registered its IKEA trademark in December 2013. According to The Guardian, the Supreme Court stated that the Swedish company, which had registered its trademark in Indonesia in 2010, had not actively utilized it for commercial purposes in three consecutive years, which allowed for its protection to expire under Indonesian trademark law.

Ratania Khatulistiwa uses the name IKEA as an acronym for Intan Khatulistiwa Esa Abadi, one of its product lines.

In another case, confectionery maker Delfi, which sells chocolate products in several Asian markets, lost a lawsuit over its Cha-Cha line to a local snack maker owned by Mayora, which sells a product of the same name, Detik reported.

How do local players use global brand names and expand their operations to several countries?

Quick answer: by taking advantage of loopholes in trademark law and different requirements in every region.

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