By Carola Montinja
Kutus Kutus, a traditional herbal rub oil from Bali, Indonesia, is widely recognized across the country. It was created and formulated in 2011 by Servasius Bambang Pranoto (“Bambang”), who, following a serious accident that left him partially paralysed, turned to traditional herbal medicine after finding conventional treatments unsatisfactory. Drawing on decades of experience with herbal remedies since 1988, Bambang developed Kutus Kutus, a blend of pure coconut oil and 64 essential oils extracted from various medicinal plants.
Initially marketed and distributed through traditional channels, Kutus Kutus quickly gained popularity. Demand soared, with pre-orders reaching 10,000 bottles a day, and by 2019 annual sales had climbed to 5.9 million bottles. To meet this unprecedented growth, Bambang formalized the business, founding PT. Tamba Waras, which later rebranded as Kutus Kutus Herbal. Business analysts note that Bambang’s success stemmed from a combination of a high-quality product, strategic marketing, and a robust distribution network—turning Kutus Kutus into a phenomenon in the Indonesian herbal oil market.
Key Takeaways
- Brand value can become a legal vulnerability. Unstructured IP ownership can turn commercial success into internal legal risk.
- First-to-file is not always decisive. Bad-faith registrations may be invalidated despite formal filing priority.
- Family businesses face heightened IP risks. Informal ownership arrangements can cost founders control of key assets.
- Corporate ownership of IP is critical. IP held personally weakens continuity, governance, and valuation.
- Rebranding can be a strategic survival tool. A timely rebrand can protect trust and legacy during disputes.
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The Intellectual Property and Family Dispute
Despite his commercial success, Bambang’s story highlights the importance of robust IP risk management, especially when family members are involved in business operations. Bambang entrusted his step-son, Fazli Hasniel Sugiharto, who also served as CEO, with handling the registration of the Kutus Kutus trademark in Indonesia.
In 2014, Fazli filed a trademark application in his own name, ostensibly with Bambang’s consent, given their family and professional relationship. However, after the passing of Bambang’s wife (Fazli’s mother), Bambang discovered misconduct by Fazli that resulted in losses of approximately IDR 9 billion for the company. To protect the business, Bambang removed Fazli from his position as CEO.
Subsequently, Bambang initiated a cancellation lawsuit at the Commercial Court in Surabaya, East Java, seeking to annul Fazli’s trademark registration on the grounds of bad faith, asserting that he was the true creator, rightful owner, and first user of the Kutus Kutus mark.
Court Decisions
On 16 April 2025, the Commercial Court of Surabaya ruled in Bambang’s favor, confirming that Bambang was the first user and rightful owner of the Kutus Kutus trademark. Consequently, Fazli’s trademark registration was cancelled.
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