Indonesian Political, Business & Finance News

Combating counterfeiters

Combating counterfeiters

The United States Trade Representative, Mickey Kantor, cited
Indonesia as one of the countries which have markedly improved
copyright protection, thereby escaping a special review with
regard to possible U.S. trade sanctions. However, Kantor's
annual report to Congress on Saturday showed that Indonesia
remains on the watch list, the lowest priority for targeted trade
sanctions.

It was, we think, simply a coincidence that three days before
the announcement of Kantor's annual report in Washington, State
Secretary/Minister Moerdiono asserted in Jakarta the Indonesian
government's stronger pledge to accelerate the fight against
violations of intellectual property rights -- trademarks, patents
and copyrights.

What Moerdiono -- in his capacity as the chief of the
presidential team set up in 1986 to coordinate the protection of
intellectual property rights -- announced in a special briefing
to reporters on April 26 was the results of his meeting with the
heads of government agencies related to the enforcement of
intellectual property laws.

He said the enforcement of the laws would be strengthened by
stepping up raids on pirates, imposing harsher penalties on
counterfeiters and banning the imports of counterfeit goods.

There were two other important points raised by Moerdiono in
his announcement. The first calls for expanding the training of
law enforcement officials and the second for the stepping up of
information campaigns to promote the public's awareness of the
need to protect intellectual property rights.

We think it is not a lack of political will, but rather a lack
of skilled law enforcers and the inadequate awareness on the part
of the general public that have been the major problems
encountered in the protection of intellectual property rights.

The government has proven its political determination to
protect intellectual property rights, as can be seen from the
amendments to the old laws on patents, copyrights and trademarks
made over the last few years. The government also is drafting
several new laws regarding the protection of intellectual
property rights to accommodate the latest developments in
technology and business practices and to comply with the rules of
the World Trade Organization.

Obviously, enacting laws is one thing and enforcing them is
quite another thing. First of all, the history of the
industrialization process in Indonesia has been relatively short.
The transformation of an attitude based on an agrarian economy in
which almost everything is considered a blessing from God, into a
way of thinking that is increasingly industry oriented takes
time.

Hence, the information campaign to increase the public's
awareness is quite essential. And so is the stepping up of
training to help law enforcers to comprehend and enforce the
laws.

We reckon the U.S. government has noted the seriousness of the
government's stance regarding the protection of intellectual
property rights. That, we think, is the main reason why Indonesia
has not been placed on the priority list of countries threatened
with trade sanctions.

That the enforcement of the laws has not been as effective as
expected is understandable, in view of the objective reasons
cited above.

In fact, as Moerdiono stated, the government is very committed
to accelerating the educational process and to strengthening law
enforcement by introducing tougher repressive measures and by
stepping up the training of law enforcers.

We would be naive to deny that international pressure has
nothing to do with this drive, especially in view of the export-
led growth strategy of Indonesia's economic development.

But the stronger motive, we think, is the government's
realization that as the domestic industries become increasingly
oriented to the manufacture of higher value added products, it
would be in the country's own national interests to protect
intellectual property rights in light of stimulating homegrown
innovations and attracting more technology and knowledge-
intensive foreign investment ventures.

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