JAKARTA, Indonesia - Timing is everything, IKEA has learned, after an Indonesian supreme court ruling upheld a local furniture company's right to use the Swedish furniture and retail giant's trademark name following three years of commercial disuse in the country. According to news sources, IKEA applied for the trademark in Indonesia in 2010, but because it had not used it commercially in the country for three consecutive years, an application for the brand name was granted to Surabaya-based furniture maker Ratania Khatulistiwa in December 2013.
The issue went before Indonesian courts in 2014, when IKEA built and subsequently opened its only retail store in the country. Although the ruling was made earlier last year, reports show it only appeared online in a court publication earlier this month.
The Indonesian furniture company is claiming its usage of IKEA is an acronym of the words "Intan Khatulistiwa Esa Abadi," which reportedly refers to the rattan typically used in furniture construction. Founded in 1989, Ratania Khatulistiwa's website lists the U.S., Asia, Europe and Australia as markets for its rattan furniture, casegoods and accessories.
RTA and retail giant IKEA is an acronym formed from founder Ingvar Kamprad's name and the farm where he grew up, Elmtaryd Agunnaryd. Kamprad founded the company in Sweden in 1943.
Inter IKEA Systems BV, which oversees IKEA’s more than 300 worldwide stores and 30 franchises, told Swedish media source The Local that steps had been taken to ensure the company can continue to sell under its own name, but no further details were provided.
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