Cosmetics Business Legality: Intellectual Property to Protect!
Corporate Secretary Service Indonesia – According to a report by Zion Market Research, the cosmetics industry is expected to grow at 5.5% CAGR (Compound Annual Growth Rate) from 2020 to 2026. Increasing demand for high-quality skin, hair, and nail care products, as well as rising awareness of the importance of health and beauty, are the main factors for the growth of the cosmetics industry. In addition, innovations in technology and ingredients used in cosmetic products also contribute to developing the cosmetics business.
In the world of the cosmetics business, intellectual property has a very important role in protecting products and brands from plagiarism and intellectual theft, so cosmetics business owners need to understand the types of intellectual property relevant to their business and how to protect them.
Cosmetics business legalities: Brands
Why is branding important for cosmetics businesses? For those of you who are cosmetics business entrepreneurs or those who want to start a business, how many cosmetics brands do you know? A lot, right? The role of the brand is to distinguish your cosmetic products from thousands of your competitors’ cosmetic products. So that consumers can more easily recognize and even remember your product. So, cosmetic companies need to protect their brand as a valuable asset that can strengthen its position in the market and preserve its long-term investment.
Cosmetic companies need to register the brand. Because by registering the brand, the brand will be legally protected (Article 3 of the Trademark Law). So that if someone wants to plagiarize or imitate your brand, it can sue for compensation or prosecute criminally (Article 83 of the Trademark Law).
Read Also: Legality Guidelines for Foreigners If They Want to Do Business in Indonesia
Cosmetics business legality: Patent
In the growing cosmetics and skincare business era, competition is getting tougher, so every business competes with each other to innovate and develop products. However, there is still little understanding of the legal protection that can be provided for product innovations, processes, and production methods, known as patents.
Patents for cosmetic and skincare products can only be protected after being filed and granted by the Directorate General of Intellectual Property DJKI (Direktorat Jenderal Kekayaan Intelektual). Therefore, in this era of increasingly fierce business competition, cosmetics, and skincare companies must pay attention to patent protection to protect their innovations and products from unauthorized use by other parties.
Cosmetics business legality: Industrial Design
Product makers can increase the ease with which their products are remembered and recognized by consumers by creating unique and distinctive packaging. However, cosmetics and skincare businesses often struggle to prevent competitors from plagiarizing their product packaging.
Businesses often do not realize that product packaging, including store layouts, can be legally protected by registering industrial designs with the DJKI to obtain exclusive rights. By Article 1 point 5 of Law 31/2000, the owner of an industrial design right has the exclusive right to use the industrial design or grant permission to other parties to use it.
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