Indonesian Political, Business & Finance News

DJKI Destroys 567 Fake Lacoste Products, Potential Losses Nearly Rp 1 Billion

| | Source: MEDIA_INDONESIA Translated from Indonesian | Legal
DJKI Destroys 567 Fake Lacoste Products, Potential Losses Nearly Rp 1 Billion
Image: MEDIA_INDONESIA

The Directorate General of Intellectual Property (DJKI) of the Ministry of Law has destroyed 567 counterfeit Lacoste-branded products with an economic value reaching Rp940.4 million. The action was taken after uncovering trademark infringement practices that had the potential to harm rights holders and mislead consumers, whilst affirming the government’s commitment to strengthening intellectual property protection.

The destruction of evidence was carried out at the DJKI Building of the Ministry of Law in Jakarta on Monday (22/6), after the case was resolved through a restorative justice mechanism between the Lacoste trademark holder and the alleged infringing party.

Director General of Intellectual Property, Hermansyah Siregar, stressed that the destruction of evidence is not merely the execution of legal procedures, but a tangible form of the state’s presence in safeguarding the credibility of the national intellectual property system.

“More than just the destruction of evidence, this activity demonstrates that the state is present to maintain the integrity of the intellectual property system, provide legal certainty for business actors, and strengthen public and international confidence in Indonesia’s intellectual property protection system,” Hermansyah said at the DJKI Jakarta grounds on Monday (22/6).

According to him, intellectual property protection plays a strategic role in national economic development. Amid increasingly competitive global competition, legal certainty regarding intellectual property rights is one of the factors determining investor confidence and business competitiveness.

“The protection and enforcement of intellectual property law is not only to protect rights holders, but also to create legal certainty, maintain fair business competition, protect consumer interests, and encourage a conducive investment climate,” he stated.

Hermansyah explained that the government continues to strengthen the intellectual property ecosystem through improved public services, regulatory refinement, digital transformation, public education, and strengthened law enforcement.

Additionally, he emphasised that Indonesia’s commitment to protecting intellectual property is also a concern for the international community as it is closely linked to assessments of a country’s legal certainty and investment climate. “The activity we are carrying out today is one manifestation of that commitment,” he said.

On the same occasion, Director of Law Enforcement at DJKI, Arie Ardian Rishadi, revealed that the case originated from a report by the trademark owner who found many fake Lacoste products circulating in the market.

“Looking at the initial findings, this was indeed based on the findings of the trademark owner, where many Lacoste trademarks were being counterfeited in several places. They eventually reported it to us and we conducted an investigation,” Arie told reporters.

After receiving the report, DJKI investigators carried out a series of law enforcement steps, from processing the crime scene and inspecting locations to investigating the parties involved in the distribution of the goods.

From the investigation, officers seized 567 items consisting of 135 jersey shirts, 42 training trousers, 25 jackets, 204 shirts, 32 sweaters, 9 polo t-shirts, 91 t-shirts, and 29 boxer shorts that used the trademark without permission.

“The total evidence has an estimated economic value of Rp940,400,000. So, of course, this value also shows the magnitude of the potential economic loss caused if these goods were to circulate in the market or among the public under the name of the legitimate trademark,” Arie said.

According to him, this figure is based solely on the retail price calculation of similar genuine products on the market. If these counterfeit products had continued to circulate, the impact would not only harm the trademark owner but also potentially mislead consumers and disrupt fair business competition.

“This destruction of evidence is not merely the fulfilment of an administrative obligation, but a concrete step to prevent greater losses for the trademark rights holder, consumers, and the business world. Trademark infringement not only harms the rights owner but also has the potential to mislead consumers and disrupt fair business competition,” he stated.

Arie explained that the case did not proceed to court because the parties chose to resolve it through a restorative mechanism facilitated by the DJKI. “Regarding the settlement process, because there was a restorative process agreed upon by both parties, the resolution was carried out out of court. They agreed to destroy the goods as we are witnessing now,” he said.

Nevertheless, Arie confirmed that the investigation into the counterfeit product distribution network is still being developed. Based on initial tracing, the evidence was found in a shopping centre in the East Jakarta area.

“We will continue to develop this. Yesterday, there were several points we had already investigated related to the production sites,” he stated.

He emphasised that trademark infringement is a complaint-based offence as stipulated in Law Number 20 of 2016 on Trademarks and Geographical Indications. Therefore, law enforcement can only be carried out after a report is received from the rights holder.

“If their rights are violated, their trademark is counterfeited, the authorities can act if there is a complaint to the Directorate General of Intellectual Property,” he said.

In addition to handling criminal cases, the DJKI also provides mediation services for intellectual property disputes and facilities for blocking sites that violate intellectual property rights. According to Arie, every year his party takes action against hundreds of digital violations.

“If there is a complaint, we will follow up. If there is a request for site blocking, we will block it. If there is a request for mediation, we will mediate. So, we are open to all efforts to protect intellectual property rights,” he concluded.

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