In order to support and help batik SMEs competing in free-trade markets, the collective trademark system is proposed. The individual trademark system has not been successful to support the SMEs batik’s business, considering their reluctance to administer the registration, and that its registration cannot assure the improvement of their business and profits they can receive. To build the brand’s reputation individually is also another burdening task for the SMEs. Furthermore, the Batikmark certification which is aimed to indicate Batik Indonesia as different with imported ‘batik’, has also not been used effectively by the SMEs. Many of them consider it as another bureaucratic process just like the registration of trademarks which are costly and time consuming. The collective trademarks system may address the issue of administrative and costs burden that the SMEs have to deal with if the apply for trademark registration individually. The fact that batik SMEs gather in a organization or kinships can be optimized to support their business through registration of collective trademark and building of brand infrastructure with local community’s standardization and collective batik labelling. In this respect, they can construct their local quality and characteristic, consent on them in a set of agreed rules, and use collective labeling to indicate their community’s products. Legally, they can register such collective standardization and labeling through collective trademark registration. By such a way, they can cooperate as a community to maintain their quality of products, and local identity altogether according to their respective needs.