Businesses should prioritize brand registration

Oct 13, 2025 by thesweetdesigns.com 120 views

Juridical Analysis of the "Lexus" Brand Ownership Dispute between PT. Toyota Jidosha Kabushiki Kaisha and PT. Lexus Power Main: A Case Study of Decision No. 194.K/Pdt.Sus/2011

Introduction

In the world of business, a brand is more than just a symbol or a logo; it represents the identity and reputation of a company. The "Lexus" brand, owned by PT. Toyota Jidosha Kabushiki Kaisha, is a prime example of a brand that has become synonymous with luxury and high-quality vehicles. However, the ownership of this brand was disputed by PT. Lexus Power Main, leading to a lawsuit that made its way to the Supreme Court of Indonesia. In this article, we will delve into the juridical analysis of this dispute and explore the implications of the Supreme Court's decision.

The Importance of Brand Ownership

A brand is a symbol that includes images, names, words, letters, numbers, color arrangements, or a combination of these elements that have a distinguishing power and are used in trading activities of goods or services. In accordance with applicable law, recognition of brand ownership rights must be carried out through registration at the Directorate General of Intellectual Property Rights (IPR), as regulated in Brand Law No. 15 of 2001. The registration of a brand is a crucial step in protecting the intellectual property rights of a company, and it is essential for businesses to understand the importance of brand ownership.

The Dispute between PT. Toyota and PT. Lexus Power Main

The dispute between PT. Toyota and PT. Lexus Power Main began with a lawsuit filed by PT. Toyota against PT. Lexus Power Main. PT. Toyota claimed that there was bad faith in the brand registration carried out by PT. Lexus Power Main, even though the brand was registered for different goods classes. They argued that this reflected efforts to take advantage of the "Lexus" brand fame owned by PT. Toyota. The lawsuit made its way to the Supreme Court, which ultimately ruled in favor of PT. Toyota.

Legal Analysis and Court Decision

In this study, the theory of legal certainty is used, with a normative legal approach that involves an analysis of relevant regulations. From the legal process that occurred, there were differences of opinion between the decisions of the Commercial Court judges and the Supreme Court. The Commercial Court Judge acknowledged the equality in the principal and all goods and services, but found no evidence that showed that the "Lexus" brand was a famous brand. Conversely, the Supreme Court gave a different decision, winning PT. Toyota Jidosha Kabushiki Kaisha on the grounds that the "Lexus" brand owned by the Plaintiff has exclusive and single rights. Thus, Article 6 paragraph 1 letter b of the Brand Law No. 15 of 2001 can be applied.

The Supreme Court's decision shows the importance of recognition of famous brands in brand law in Indonesia. The "Lexus" brand produced by PT. Toyota has made a large investment in promotions in various countries, through various channels such as magazines and advertising, so that the brand is easily accessed globally. This shows that the famous brand not only depends on registration, but also on consistent and sustainable promotional activities.

Brand Legal and Policy Implications

Brand registration that has similarities in essence or overall for different goods classes is allowed as long as it does not violate Article 4 of the Brand Law No. 15 of 2001. However, this needs to be followed by an evaluation of the brand's knowledge. Thus, it is important for businesses to understand and consider their brand reputation and recognition in the context of the global market.

This decision also provides valuable lessons for other companies related to the need to protect and protect their brands more proactively. With the increasing number of cases of brand disputes in the current digital era, it is essential for brand owners to carry out strict supervision of similar brand registration, as well as taking legal steps needed to protect their intellectual ownership.

Conclusion

In conclusion, the dispute over ownership of the "Lexus" brand between PT. Toyota and PT. Lexus Power Main shows the complexity of the law involving brand concepts, investment in promotion, and the importance of brand law in protecting the rights of business actors. This experience is not only relevant to the two companies but is also a reference for a broader industry in understanding the dynamics of brand law in Indonesia.

Recommendations

Based on the analysis of the dispute between PT. Toyota and PT. Lexus Power Main, the following recommendations can be made:

Businesses should prioritize brand registration: Businesses should prioritize brand registration to protect their intellectual property rights.
Brand owners should be proactive in protecting their brands: Brand owners should be proactive in protecting their brands by carrying out strict supervision of similar brand registration and taking legal steps needed to protect their intellectual ownership.
Businesses should consider their brand reputation and recognition: Businesses should consider their brand reputation and recognition in the context of the global market.
The government should provide clear guidelines on brand law: The government should provide clear guidelines on brand law to ensure that businesses understand their rights and obligations.

By following these recommendations, businesses can protect their intellectual property rights and avoid disputes over brand ownership.
Frequently Asked Questions (FAQs) about the "Lexus" Brand Ownership Dispute

Q: What is the "Lexus" brand ownership dispute about?

A: The "Lexus" brand ownership dispute is a lawsuit between PT. Toyota Jidosha Kabushiki Kaisha and PT. Lexus Power Main over the ownership of the "Lexus" brand. PT. Toyota claims that PT. Lexus Power Main registered the "Lexus" brand in bad faith, while PT. Lexus Power Main argues that they have the right to use the brand.

Q: What is the significance of the Supreme Court's decision?

A: The Supreme Court's decision is significant because it establishes the importance of recognition of famous brands in brand law in Indonesia. The decision also highlights the need for businesses to be proactive in protecting their brands and to carry out strict supervision of similar brand registration.

Q: What are the implications of the Supreme Court's decision for businesses?

A: The Supreme Court's decision has implications for businesses in Indonesia, particularly those that own famous brands. Businesses should be aware of the importance of brand registration and should take steps to protect their intellectual property rights. They should also be proactive in monitoring similar brand registrations and taking legal action if necessary.

Q: What are the key takeaways from the "Lexus" brand ownership dispute?

A: The key takeaways from the "Lexus" brand ownership dispute are:

Brand registration is crucial: Brand registration is essential for protecting intellectual property rights.
Famous brands require special protection: Famous brands require special protection, and businesses should be proactive in monitoring similar brand registrations.
Brand owners should be aware of their rights and obligations: Brand owners should be aware of their rights and obligations under brand law and should take steps to protect their intellectual property rights.

Q: What are the potential consequences of not protecting a brand?

A: The potential consequences of not protecting a brand include:

Loss of intellectual property rights: Failure to register a brand can result in the loss of intellectual property rights.
Damage to reputation: Failure to protect a brand can damage a company's reputation and lead to financial losses.
Increased competition: Failure to protect a brand can lead to increased competition from other companies that may use similar branding.

Q: How can businesses protect their brands?

A: Businesses can protect their brands by:

Registering their brands: Registering a brand is essential for protecting intellectual property rights.
Monitoring similar brand registrations: Businesses should monitor similar brand registrations and take legal action if necessary.
Being proactive in protecting their brands: Businesses should be proactive in protecting their brands and take steps to prevent unauthorized use.

Q: What is the role of the government in protecting brands?

A: The government plays a crucial role in protecting brands by:

Providing clear guidelines on brand law: The government should provide clear guidelines on brand law to ensure that businesses understand their rights and obligations.
Enforcing brand law: The government should enforce brand law to prevent unauthorized use of brands.
Providing support for businesses: The government should provide support for businesses to help them protect their brands.

By understanding the implications of the "Lexus" brand ownership dispute, businesses can take steps to protect their intellectual property rights and avoid disputes over brand ownership.