Opportunities Implementing Intellectual Property Rights Auctions as Fiduciary Guarantee Objects

Abstract

This study aims to determine and examine how the auction processes for the execution of tangible objects differ from those for the execution of intangible objects and to identify the factors that impede the implementation of auctions for fiduciary collateral in the form of IPR, particularly copyrights and patents, in Indonesia. This study is a normative legal research with a statutory regulatory and conceptual approach. The data used are secondary, namely, primary and secondary legal materials. Primary legal materials are in the form of related laws and regulations. Secondary legal materials consist of various sources directly related to primary legal materials and function as support in research activities. The results of this study indicate that the procedures for submitting an auction application and conducting an auction for tangible movable and intangible movable objects are essentially the same. The auction process aligns with the theory of utility, which provides benefits in the form of legal protection and legal certainty for both creditors and debtors. Factors that hinder the implementation of fiduciary guarantee auctions include legal and technical constraints. Legal constraints, such as regulations that do not provide optimal benefits, are not in line with the theory of utility. Technical constraints, such as banks' reluctance to accept IPR as collateral and differences in Indonesian culture from that of developed countries, can raise concerns about legal certainty and social benefits.