Multi Trillion Rupiah Stakes and Strategic Moves Unpacking the DENZA Trademark War in Indonesia

Indonesia’s fast-growing electric vehicle market has unexpectedly become the backdrop for one of the most compelling Intellectual Property showdowns in recent years. A massive Trademark Infringement Lawsuit filed at the Central Jakarta Commercial Court pits global automotive powerhouse BYD and its local distribution network directly against a registered trademark holder. Beyond the eye-watering financial figures, this high-profile litigation lays bare the unforgiving reality of territorial trademark rights in Southeast Asia’s largest economy, delivering a sharp wake-up call for multinational companies operating across the region.

The roots of this courtroom drama run deep and involve a masterclass in corporate defense strategy. Building upon our earlier analysis of the initial procedural hurdles and bad faith arguments surrounding the case, as explored in our previous coverage of the DENZA Re-Match, the conflict stems from a sophisticated pre-litigation maneuver. Initially, BYD Company Limited attempted to cancel the DENZA registration through a legal action against PT Worcas Nusantara Abadi at the Central Jakarta Commercial Court under case number 1/Pdt.Sus-HKI/Merek/2025/PN Niaga Jkt.Pst.

However, the litigation took a sharp procedural turn when the defense revealed that the trademark ownership had already been legally assigned and transferred to PT Raden Reza Adi via a notarized deed prior to the filing of the lawsuit. Ruling on the matter, the Supreme Court of Indonesia ultimately granted the appeal under case number 1338 K/Pdt.Sus-HKI/2025. The high court firmly established that BYD’s lawsuit suffered from a fatal improper party (error in persona), ruling the action inadmissible (niet ontvankelijke verklaard) because the sued entity no longer held rights to the contested mark.

Rather than retreating, the controversy evolved dramatically. Empowered by its validated standing as the rightful exclusive right holder of the DENZA trademark under registration number IDM001176306 for Class 12, PT Raden Reza Adi fired back by launching a sweeping Civil Infringement Lawsuit on September 8, 2026. Filed under case number 101/Pdt.Sus-HKI/Merek/2026/PN Niaga Jkt.Pst, the complaint casts a wide net over seven defendants simultaneously: BYD Company Limited, its core Indonesian operational entities, and major local dealership networks including PT Arista Elektrika Indonesia, PT Harmoni Target Indonesia, PT Bumi Hijau Motor, and PT Bipo Teknologi Otomotif.

In its prayer for relief, the Plaintiff asks the court to formally recognize them as the sole rightful owner of the DENZA trademark and rule that the defendants acted in bad faith. The financial demands are staggering, seeking Rp9.515.800.000.000 in joint and severally liable material damages. On top of that, the Plaintiff is pushing for an immediate, total injunction halting all import, production, assembly, distribution, sales, and marketing of vehicles bearing the DENZA name or any confusingly similar variations, alongside a mandatory market-wide product recall.

Intriguingly, what makes this dispute particularly fascinating for industry observers is the multi-layered tactical playbook unfolding on both sides. Anticipating potential roadblocks with its flagship trademark, BYD Company Limited also laid the groundwork for a backup plan as early as mid-2025. On August 11, 2025, the corporation filed applications for the DANZA trademark, securing official registrations in early 2026 under numbers IDM001414073 for Class 12 as well as IDM001426542 for Class 37. Strikingly similar in sound and sight, DANZA serves as a textbook corporate safeguard, ensuring that the automaker retains a viable trademark presence in Indonesia should the legal fight over DENZA hit a wall.

For international trademark owners and global legal counsel, this unfolding saga offers a definitive lesson. Indonesia’s strict adherence to the first-to-file principle means that global renown and deep financial resources cannot bypass the absolute necessity of early local registration. Furthermore, meticulous pre-litigation investigative due diligence is vital to avoid procedural pitfalls like improper party (error in persona) when facing sophisticated local opponents.

Navigating the nuances of Intellectual Property law in Indonesia requires sharp strategic foresight and steady guidance. ARBIL & Co. regularly assists multinational enterprises and international law firms in structuring resilient portfolio defenses and managing cross-border disputes. To explore how to protect your trademark assets within the Indonesian market, you may connect directly with our specialist team at info@arbil.co.id

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