Vietnamese IPR Developments - March 1997 - March 1998

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Rouse & Co. International

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Following the overhaul of Vietnam's IPR laws in 1996 with the introduction of the new Civil Code and accompanying implementing regulations, there has been a lull in further development. However, further legislation is anticipated and attention has turned mainly towards its arrival.

Copyright

The new Civil Code passed in 1996 defined the framework of copyright law in Vietnam. However, the last clause of the implementing regulations for the Civil Code specifically noted that the works of foreign persons were not covered by this law and that this issue would be addressed in future, (but unspecified), legislation. Thus rights of foreign nationals were strangely left with less protection than they had been afforded under the previous laws.

The result of the disappointing Civil Code copyright provisions and estimated total annual copyright piracy losses to US firms of around US$50 million, was for the USA to seek protection for the works of its citizens through a bilateral agreement.

US - Vietnam Bilateral Agreement

This agreement, signed on 27 June 1997, provides for the protection in Vietnam of works belonging to US nationals up to the standards set by the Berne Convention, (to which Vietnam does not yet belong).

In terms of Vietnamese copyright law there are several radical advances in the Agreement, especially in the area of enforcement. They include the provision of preliminary and permanent injunctive relief; provisions for the seizure and destruction of infringing goods, as well as materials and machinery used in their production; fines and criminal penalties including imprisonment intended to deter infringing activity and finally, the institution of border measures.

Despite much trumpeting of the signature of this Agreement, it has yet to be ratified by either side and furthermore, legislation needed to ensure that the contracting parties can fulfill the terms of the Agreement is not in place. The Agreement is due to come into force some time between January and October of 1998. Until ratification and implementation of the Agreement has been achieved, it would be premature to talk of increased protection for copyright in Vietnam.

Trade Dress

The lack of trade dress laws in Vietnam is demonstrated by the numerous examples of infringements visible on the market. This subject has not been totally overlooked by the Vietnamese authorities and draft laws to tackle the problems have been prepared. However the introduction of these laws, (and possibly also for trade secrets), probably as part of the Commercial Law have been repeatedly delayed. Recent estimates suggest this eagerly awaited legislation may appear sometime in late 1999.

Education

An encouraging sign of the seriousness with which the Vietnamese Government and authorities are approaching the issue of intellectual property rights has been the studies and educational programs which have been undertaken. In 1998, this has included a WIPO training courses on copyright, a study, sponsored jointly by the NOIP & the EPO, on the protection of IPRs by judicial means and IPR seminars given to Customs Officers as part of their increasing involvement in IPR enforcement. It is hoped that these positive steps can be translated in effective laws which will help Vietnam achieve the TRIPS standards required for entry into the WTO.

Gareth Davies is Director of Rouse & Co International's Vietnam operations. Matthew Willoughby is a consultant with Rouse & Co International, based in Ho Chi Minh City, Vietnam.

The content of this article is to provide only a general information on the subject. Legal advice should be sought for any specific circumstances.

For further information please contact Peter Rouse at Rouse & Co at

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