LEGAL CERTAINTY AND REGULATION OF PATENT TYING PRACTICES IN THE TELEMATICS SECTOR: A PERSPECTIVE FROM COMPETITION LAW AND PATENT LAW IN INDONESIA
Rohaini, Ria Wierma Putri, Rasyid Agung Prawira

Universitas Lampung

Abstract

This study examines the legal contradiction between Indonesia^s Patent Law, which grants exclusive rights to patent holders, and Law No. 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition, with a specific focus on patent tying practices. This regulatory gap has widened following the 2024 revision of the Patent Law, which has not explicitly formulated boundaries for tying within licensing agreements, creating tension between Article 15(2) of the Competition Law and Articles 76-78 of the Patent Law. Using normative legal research with statute, conceptual, and comparative approaches, this study aims to: (1) construct the juridical basis of patent tying practices from the perspective of competition and patent law- (2) formulate critical parameters distinguishing lawful patent tying from practices that violate competition principles- and (3) design an ideal legal arrangement for patent tying in Indonesia^s telematics industry. Comparative analysis is drawn from the United States (Illinois Tool Works Inc. v. Independent Ink, Inc.) and the European Union (Huawei v. ZTE, Technology Transfer Block Exemption Regulation) to extract universal principles adaptable to the Indonesian legal context, particularly regarding Standard Essential Patents (SEP) and the Fair, Reasonable, and Non-Discriminatory (FRAND) principle. The study is expected to contribute clearer legal parameters for assessing the legality of patent tying based on market power, innovation efficiency, and the risk of market foreclosure, as well as policy recommendations to harmonize the authority of the Directorate General of Intellectual Property (DJKI) and the Business Competition Supervisory Commission (KPPU) in regulating patent licensing within the digital economy.

Keywords: Patent Tying, Competition Law, Patent Law, Telematics Industry, Standard Essential Patent

Topic: Technological Moderation for Collective Legal Response (Legal Innovation- Collaborative Regulation- Technology and Law)