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Amendments to Vietnam Intellectual Property Law, effective from Jan 1, 2010

On June 19, 2009, the National Assembly of Vietnam adopted amendments to Vietnam Intellectual Property Law, which took effect on January 1, 2010. Highlights of the main amendments are included:

  • Duration of Copyright: In the case of a cinematographic work, a photographic work, a work of applied art, the economic rights and the right of publication  shall be protected for 75 years from the first publication of the work or, failing such publication within 25 years from the fixation of the work, for 100 years from the fixation of the work.
  • First-To-File Principle: This principle is distorted in the amended (present) provisions (Articles 90.1 and 90.2). Under the old law, when two or more different persons have filed the same (or substantially the same) invention/design or the same (or confusingly similar) mark, the patent or registration will be granted to the person who is the “first-to-file”. Under the present law, the words “different persons” disappear. According to the report of the Amendment Drafters Committee to the National Assembly, the present first-to-file shall be applied not only to “different persons”, but also to “the same person”.
  • Time extended for substantive examinations of inventions, designs, marks: The substantive examination of an invention shall be carried out within 18 months from the publication date if the examination request is submitted before that date or, from the date of receipt of the examination request if the examination request is submitted after the publication date. The substantive examination of a design shall be carried out within 07 months from the publication date. The substantive examination of a mark shall be carried out within 09 months from the publication date.
  • Prior Use: If a person, other than the applicant of an application, has made an invention or design himself and has started or made necessary preparations toward using the invention or design, which is identical with that of the application, before the filing date or the priority date of the application, that person shall have the right to continue the use, to the same extent as that at the time of the filing date or the priority date, of the patented invention or design.
  • Administrative Enforcement: Any person, who commits an infringing or unfair act, whether intentionally or unintentionally (but not yet to the level of criminal liability), shall be subject to administrative penalties. The maximum monetary fine is 500 million Vietnamese Dong (approximately 28 thousand US$), which is increased five times more in the present law than in the old law in hopes that it is an effective deterrent against intellectual property infringement.
  • Border Measures: Under the present law, the duration of suspension by the customs authorities of the release of allegedly infringing goods is 10 working days from the date on which the applicant for the suspension receives notice of the suspension, rather than from the date on which notice of the suspension is issued as provided for in the old law.
 
New guidelines on criminal actions for infringement of IP rights

The People's Supreme Court, the People's Supreme Procuracy, the Ministry of Police and the Ministry of Justice have adopted Inter-Ministerial Circular 01/2008/TTLT-TANDTC-VKSNDTC-BCA-BTP. The new circular, which entered into force on 2 April 2008, aims to: (i) provide guidelines on criminal actions in IP rights infringement cases; and (ii) contribute to the protection of IP rights in Vietnam.

Certain provisions of the new circular address trademark and geographical indication infringement. The main features of these provisions are as follows:

• Any individual who deliberately infringes an industrial property right in the course of trade will be deemed to be "causing serious consequences" under Article 171(1) of the Penal Code and will be fined between D20 million and D200 million or sent to a re-education establishment for up to two years where one of the following conditions is met: (i) the individual made a profit of between D10 million and D49.9 million from the infringing activities; (ii) the trademark owner suffered material damage in an amount ranging from D50 million to D149.9 million; and (iii) the value of the infringing goods ranged from D50 million to D149.9 million.

• Any individual who deliberately infringes an industrial property right in the course of trade will be deemed to be "causing very serious consequences" under Article 171(2) of the Penal Code and will be imprisoned for a period between six months and three years where one of the following conditions is met: (i) the individual made a profit of between D50 million and D149.9 million; (ii) the trademark owner suffered material damage in an amount ranging from D150 million to D449.9 million; and (iii) the infringing goods were worth between D150 million to D499.9 million.

• Any individual who deliberately infringes an industrial property right in the course of trade will be deemed to be "causing extremely serious consequences" under Article 171(2) of the Penal Code and will be imprisoned for a period of between six months and three years where one of the following conditions is met: (i) the individual made a profit of D150 million or over; (ii) the trademark owner suffered material damage of D450 million or over; and (iii) the infringing goods had a value of D500 million or over.

Criminal proceedings will be initiated only at the request of the owner of the infringed trademark or geographical indication.