JP/R. Berto Wedhatama

In October, my colleagues and I participated in intellectual property rights (IPR) training in Seoul and Daejeon, South Korea. We had briefings on counterfeit items sent in small packages entering the country through airports, as cited by the Trade-Related Intellectual Property Rights Protection Association (TIPA). We also visited the Korean Intellectual Property Office (KIPO) in Daejeon and learned how the Korean Customs Service (KCS) protected IPR to support fair competition in business, and how its work had influenced law enforcement in dealing with IPR violations.

I then realized how South Korea had transformed to become among the world’s economic powers through its successful IPR protection. As a member of the World Trade Organization, South Korea includes IPR protection in its national law. And it works; based on the United States Chamber of Commerce’s 2019 Global Intellectual Property Index, South Korea ranked 13th among overall economy scores. 

What was most evident from this success story was people’s awareness about the importance of IPR protection, beginning 25 years ago when patent applications reached 20,000 in 1994/1995. Then, in 2006, patent registration in South Korea increased to more than 120,000. And in 1989, South Korea was not in the league of the 20-biggest economies in terms of gross domestic product (GDP). But today, South Korea is the 12th-largest economy in the world based on the International Monetary Fund’s World Economic Outlook Database and is a member of the G20 countries. This performance relates to increased awareness about IPR protection. 

South Korea’s experience shows that government coordination supports intellectual property protection. TIPA gives support by scheduling onsite visits and organizing training sessions for customs officials on intellectual property. TIPA also helps intellectual property owners maintain their records in a government database. KIPO collaborates with the KCS to identify counterfeit goods entering South Korea. 

A study by the World Intellectual Property Organization (WIPO) found that the number of patent applications influenced research and development, royalties obtained from technology export, foreign direct investment and finally, real GDP in South Korea. This research proved how intellectual property rights could trigger economic development. 

Meanwhile, Indonesia was ranked 45th (big five from the bottom) based on the US Chamber’s 2019 Global Intellectual Property Index. The Intellectual Property Directorate General website shows registered patents in Indonesia reached only in 2,775 in 2018 or one-tenth the number of registered patents in South Korea 25 years ago.

The trend to register other IP trademarks and service brands is also declining, so we need to promote IPR as a solution. Government institutions can be more involved by creating creative content; for example, by hiring social media influencers to talk about IP. Animation or cartoons can be used to create content to reach the internet audience.

Another point here is the crucial role of the active involvement of government agencies. I obtained valuable lessons on the collaboration between KCS, TIPA and KIPO. Indonesia’s Customs and Excise Directorate General runs a customs and excise information system and intellectual property rights automation system to accommodate the owners of IPR registering their IP in customs records. By using the system, customs officials enforce the law against products suspected of violating IPR that enter Indonesian customs areas.

However, we still lack participation from IP owners. Further communication with the Intellectual Property Rights Directorate General with regard to accessing information in IP registration will help customs officials guide IP owners in listing their records. Moreover, we can produce more IPR experts by collaborating with customs services from other countries or exchanging information about IP violations so every government agency can play their role effectively.

High awareness of IPR will reduce unfair competition since IP owners will be protected; no one else could use their product without their permission if they registered their IP. This would encourage the growth of creative economies and increase investor trust. People’s awareness of IPR would protect customers from low-quality products.

As the South Korean experience has shown, proper IPR protection leads to economic growth. The first step is building IPR awareness, not only among officials but also IP owners. Further cooperation between government agencies in promoting IPR awareness is important as well, so IP owners realize the need to register their IPR.

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Data analyst at the Customs and Excise Directorate. The views expressed are his own.

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