One’s right on a trademark is granted on registration. The state provides legal protections and recognizes the right of those whose trademark is registered on the Diretorate General of Intellectual Property (DGIP). The application of the first to file principle in Indonesia’s trademark registration system means that registration is absolutely required to create the right on that particular trademark and whoever registered a certain trademark first is considered the owner of said trademark, as it is written on Article 3 of Law 15 of 2001 on Trademarks. Registration is what creates the right, so it is of utmost importance. In regards of the first to file principle, good faith is also very important. Registration must be based on good faith. Any registration that is based on bad faith is eligible for cancellation as it is written on Article 4 of Law 15 of 2001 on Trademarks. However, inconsistency in the application of the first to file principle still occur. One of the striking example is case number 086/PK/PDT.SUS/2009 between Kishin L. Nandwani as plaintiff, Prem L. Bharwani as first defendant, and DGIP as second defendant. In this case, the plaintiff accused first defendant of doing a trademark registration based on bad faith. The first defendant registered the mark ‘Serba Cantik’ which the first defendant did not use and was actively used by the plaintiff. This case has been decided in the commercial court (case number 53/Merek/2008/PN.Niaga.Jkt.Pst), appeal court ( case number 099K/Pdt.Sus/2009), and PK (case number 086/PK/PDT.SUS/2009)