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The Use of a Trademark not in Accordance with Registration May Lead to Compensation Claim
- 2022-11-06 10:17:40

Recently, The Commercial Court of Central Jakarta sentenced a fine amounting to Rp. 9,098,580,000 (nine billion ninety eight million five hundred and eighty thousand rupiah) in decision No. 80/Pdt.Sus-HKI/Merek/2021/PN.Niaga.Jkt.Pst to a clothing company from Indonesia with the name of PT Idea Solusi Indonesia which is the owner of clothing business chain under the name of ERIGO Store and also the holder of trademark ERIGO + DEVICE in class 25 under the Reg. No. IDM000507415. The fine imposed by the Commercial Court was due to a claim for compensation filed by Muhamad Adi Mulya Pranata as the owner of the registered trademark ERG in class 25 with Reg. No. IDM000540156 against PT Idea Solusi Indonesia for the alleged use of the trademark ERG without rights and permission on sweatshirt and hoodie sold by PT Idea Solusi Indonesia in several Indonesian e-commerce platforms.

Based on the lawsuit, PT Idea Solusi Indonesia argued that they did not use Muhamad Adi Mulya Pranata's trademark, but instead, using their own trademark, namely ERIGO + DEVICE under Reg. No. IDM000507415. However, based on the evidences presented at the court in the form of photographs of the sweatshirts and hoodies under the trademark ERIGO that bears the writing of “ERG” on the front of the sweatshirts and hoodies, as well as the number of sales of each product in several e-commerce platforms in Indonesia, the Panel of Judges at the Commercial Court of Central Jakarta decided that PT Idea Solusi Indonesia has committed trademark infringement by using a trademark which is similar in its essential part and/or entirety with the registered trademark ERG under Reg. No. IDM000540156 on behalf of Muhamad Adi Mulya Pranata.

The decision of the Commercial Court was later overturned by the Supreme Court Decision No. 1349 K/Pdt.Sus-HKI/2022 based on the consideration that the trademark ERIGO + DEVICE under Reg. No. IDM000507415 also has been registered and therefore PT Idea Solusi Indonesia has every right to use it. However, the Supreme Court did not specifically discuss the use of the trademark ERG by PT Idea Solusi Indonesia on its sweatshirts and hoodies products. 

After observing the decision of the Commercial Court as outlined above, it is important for business practitioners and trademark owners to use their trademark in accordance with the trademark registration etiquette in order to avoid infringement of trademark rights belonging to third parties, considering the provisions of Article 83 paragraph (1) of the Trademarks and Geographical Indications Law No. 20 of 2016.



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