What is the importance of intellectual property rights (IPR) for small and medium enterprises (SMEs) in the creative industry? This paper analyses the relationship between understanding IPR for SMEs and the economic value generated from IPR strategy. Located in the Special Region of Yogyakarta, Indonesia, this research gathered data over the past five years to examine the way in which SMEs in creative industry register their intellectual property (IP). This study found that this IPR strategy is an impact of the existence of state-institutionalised programs in an effort to enhance the capacity of SMEs in Yogyakarta. These efforts include the introduction of IPR in the forms of assistance, courses and workshops, as well as incentives in IPR registration. This study indicates that there is strong relationship between IPR protection and the economic benefits that it creates afterwards. This study also emphasizes the role of the government in carrying out activities and programs that prove to be hugely influential.