Geographical Indication & Gastro-Diplomacy as Nation Branding Strategy : A Perspective from Indonesia

Intellectual property has become an essential aspect of Indonesian economic development. One form of business closely related to intellectual property is Franchise Business. As a franchisee or recipient of a franchise, individuals are essentially granted permission to use the intellectual property owned by the franchisor. This includes the use of trademarks, logos, industrial designs, technology patents, and trade secrets. Through this, the franchisor can obtain royalties for the use of their intellectual property. However, franchise agreements, as part of civil agreements involving commercial aspects, are inevitably bound by
tax regulations. The implementation of taxes on franchise business royalties poses a unique challenge for Indonesia to optimize, particularly in the context of copyright royalties. This research adopts a normative juridical method, considering primary legal materials such as legislation, secondary legal materials in the form of legal literature reviews, and tertiary legal materials such as legal dictionaries and other supporting literature. The aim is to understand the phenomenon in question based on applicable laws.