Intellectual Property Right is Not a Monopoly

Dr. Bambang Kesowo, S.H., L.L.M., lecturer from Faculty of Law, Universitas Gadjah Mada (UGM), mentioned that exclusivity attached to Intellectual Property Right cannot be interpreted as a form of monopoly. The exclusive nature is only limited to do certain acts and not to build a monopoly.

In the Law No 5 Year 1999 on Ban on Monoply Practices and Unhealthy Business Competition, IPR is one of the topics being exempted. He said, however, that such exclusivity cannot be interpreted that all aspects related to IPR is released and exempted from anti-monopoly regulations or ban on monopoly practices and unhealthy business competition. “IPR cannot be released from anti-monopoly regulations if the practices cause negative impacts on the market or damage the healthy competition climate,” he explained, Monday (15/2) in the Seminar on IPR and Business Competition in AFTA 2010, held at the Faculty of Law, UGM. He further explained that if in reality the use of the implemented IPR violates regulations on anti-monopoly or unhealthy business competition, the solution should be through anti-monopoly process or ban on monopoly practices and unhealthy business competition itself.

Responding to the AFTA and ACFTA, Bambang Kesowo said that the cooperation in IPR needs serious attention because, so far, national effectivity testing takes place at domestic level only.

Meanwhile, Dra. Sri Adiningsih, M.A., Ph.D., lecturer from Faculty of Economics and Business, said that the implementation of ASEAN Free Trade Area is an opportunity as well as challenge for Indonesia. Indonesia is not yet strongly positioned to compete at ASEAN level due to its low quality of human resources and international leverage. “Market liberalisation without good domestic preparation will only become a backfire for Indonesia,” she said.

She confirmed that with correct and innovative strategy, Indonesia should not  worry about the implementation of AFTA, free market and even the ASEAN Community. She added that AFTA would not significantly affect the trade cooperation between ASEAN member countries. She explained that most of the products circulating in ASEAN is dominated by those coming from outside. “So, although there is no entry tariff, trade cooperation will not run to the maximum, because the goods that are circulating have the same quality,”  she said.