The Opportunity of Intellectual Property on Small and Medium-Scale Enterprises in Malang Raya Region

Abstract

The small and medium-scale enterprises (SMEs) has significantly contributed to economic aspect and overcoming the unemployment and employment issues in Indonesia. SMEs mainly refers to a productive business that stands alone, carried out by an individual and/or business entity with particular criteria. Malang Raya region is covering included of Batu City, Malang Regency, and Malang City and the one of an area that develops fast enough in East Java Province, including in the industrial sectors. However, the amount of Intellectual Property Rights (IPR) application was still low compared to the SMEs number. The objective of this study was to get the opportunity of IPRs potency of SMEs in Malang Raya region. In the long term it is expected to encourage the research and development program which has orientation to the IPRs of SMEs and gives an assistance to SMEs to obtain the IPRs protection. The period of data collection was from 2015 to 2016. The sample was conducted on 90 SMEs in Malang Raya region by primary and secondary data. The data was obtained by using field observation method with respondents participatory, in-depth interview, documentary, and purposive sampling to each area. The result of this study showed that most of SMEs in Malang Raya area was the industry of processed food (54A0%) with 47.77% of the market area was on national scale and 40 % was on East Java regional market and the rest was local market. The 68.89% of SMEs did not have any IPRs problem, but 31.11% of them encountered some issues, especially on the trademark. The data showed that 12.23% of SMEs in Malang Raya region have patent opportunity, 42.22% copyright. 7.78% industrial design and 91.11% trademark which was need to IPR guidance