Relationship between Protections of Intellectual Property Rights (IPRs) and Corporate Social Responsibility (CSR) in the State of Law

Indonesia reform the country’s intellectual property laws match to Trade RelatedAspects of Intellectual Property Rights (TRIPs) Agreement as part of membership obligation after Indonesia enteredWorld Trade Organization (WTO) in 1994 and ratification some of international IPR convention, among others WIPO Copyright Treaty (WCT) and Patent Cooperation Treaty (PCT). Besides amending the existing statutes Indonesia government enacted new intellectual property laws in comply to TRIPs Agreement

In 2006, The United State Trade Representative (USTR) remained Indonesia as the one of “Priority Watch List” countries.[1] In the meant while Indonesia has a very difficult to enforce the IPR protection although has been ratified the TRIPs and joined the WTO since 1994.

Based to the assumptions that mentioned above, the following paper would like to explore any relationship between the Intellectual Property Rights protection and Corporate Social Responsibility in Indonesia

Corporate Social Responsibility is a concept that organization especially (but not only) corporations, have an obligation to consider the interests of costumers, employees, shareholders, communities, and ecological considerations in all aspect of their operations. This obligation is been to extend beyond their statutory obligation to comply with legislation.[2]

International Organization for Standardization (ISO), has launched an International Standard providing guidelines for Social Responsibility (SR) named ISO 26000 or simply ISO SR and was released on October 28, 2010.[3]

Based on the opinion of John Elkingston and the definition that taken from Investment Act No. 25, 2007, CSR is designed to each business organization or company to build a social relationship in their local community and maintain the ecological environment

To match the international standard, each company activities regard to Social Responsibility may use the guidance that published by International Organization for Standardization. But the ISO 26000:2010 as the Social Responsibility Guidance is not intended to provide a basis for legal actions, complaints, defenses or other claims in any international, domestic or other proceeding, nor is it intended to be cited as evidence of the evolution of customary international law.

The protection of the human right is appeared on Paragraph 4 “The Preamble to the Constitution” (Alinea ke-4 Pembukaan Undang-Undang Dasar 1945),

“ ... melindungi segenap bangsa Indonesia dan seluruh tumpah darah Indonesia dan untuk memajukan kesejahteraan umum, mencerdaskan kehidupan bangsa dan ikut melaksanakan ketertiban dunia yang berdasarkan kemerdekaan dan keadilan sosial...” (... government of the state of Indonesia which shall protect all the people of Indonesia and all the independence and the land that has been struggled for, and to improve public welfare, to educate the life of the people and to participate toward the establishment of a world order based on freedom, perpetual peace and social justice…).

In general, the protection concerning to intellectual property has governed on Article 28C paragraph(1) The 1945 Constitution of the Republic of Indonesia (Pasal 28C ayat (1) Undang-Undang Dasar 1945),

“Setiap orang berhak mengembangkan diri melalui pemenuhan kebutuhan dasarnya, berhak mendapat pendidikan dan memperoleh manfaat dari ilmu pengetahuan dan teknologi, seni dan budaya, demi meningkatkan kualitas hidupnya dan demi kesejahteraan umat manusia.” (Every person shall have the right to develop him/herself through the fulfillment of his/her basic needs, the right to get education and to benefit from science and technology, arts and culture, for the purpose of improving the quality of his/her life and for the welfare of the human race)

From the paragraphs mentioned above, we have learn that Indonesia grant the protection to Intellectual Property Right holder from the 1st day of Country Establishment. As the protection that granted by the state to each Intellectual Property Rights holder, the court will give the punishment under the public law policy to each person who make any infringement to intellectual property rights holder with imprisonment and or fine in each of Indonesian Intellectual Property Laws.

On the Copyright Act, No. 19, 2002, the sanction that given by the court to everyone who proven do any infringement to the copyright holder is imprison up to 7 years and or fine equal to USD550,000.[4]

As mentioned above, we may learn that’s no any relationship in between Corporate Social Responsibility (CSR) and the protection to Intellectual Property Rights (IPR) holder. Because the protection of Intellectual Property Rights is granted by Indonesia as the obligation of rules of the laws under the public law policies.

Under the private law policies, IPR holder may ask any compensation without any limitation to everyone that doing the infringement to their IPR right and proven by court. So far, there is no any rules of law in any state include Indonesia that make any imprison punishment and or any fine as the sanction under the public or criminal law to any company which avoid or break the Corporate Social Responsibility.

Conclusion: That’s no any relationship between Corporate Social Responsibility (CSR) and Protection of Intellectual Property Rights. Protection of Intellectual of Property is granted by any state of the law among others Indonesia. CSR is company activities in running their business in conduct with their society and or ecological environment. Although the CSR implementation has the ISO guidance (known as ISO 26000:2010) does not impact to any protection to the Intellectual Property Rights holder.

[1]Ronald Kirk, 2006 Special 301 Report, Office of the United States Trade Representative, 2006, page 29.

[2] John Elkingston, “Cannibals with Forks,The Triple Bottom Line of Twentieth Century Business”, taken from Teguh Sri Pembudi, CSR Sebuah Keharusan dalam Investasi Sosial, Pusat Penyuluhan Sosial (PUSENSOS) Departemen Sosial RI, Jakarta, La Tofi Enterprise, 2005, page 19.

[3] International Organization for Standardization, “ISO 26000 Guide On Social Responsibilities”,http://www.iso.org/iso/iso_catalogue/.../catalogue_detail.htm?csnumber=42546, Accessed on March 25, 2012, 12.09 UTC.

[4]Unofficial translation from Article 72 Copyright Act No. 19, 2002 (Pasal 72 Undang-Undang Nomor 19 Tahun 2002 Tentang Hak Cipta, “Barangsiapa dengan sengaja dan tanpa hak melakukan perbuatan sebagaimana dimaksud dalam Pasal 2 ayat (1) atau Pasal 49 ayat (1) dan ayat (2) dipidana denganpidanapenjaramasing-masing paling singkat 1 (satu) bulan dan/atau denda paling sedikit Rp 1.000.000,00 (satu juta rupiah),atau pidana penjara paling lama 7 (tujuh) tahun dan/atau denda paling banyak Rp 5.000.000.000,00 (lima miliar rupiah).”