Obstacles impeding proper enforcement of law on IP rights

Officials and experts are calling for proper enforcement of the Law on I ntellectual Property (IP) Rights, saying it is needed to serve Vietnam’s economic development and international integration.
Officials and experts are calling for proper enforcement of the Law on Intellectual Property (IP) Rights, saying it is needed to serveVietnam’s economic development and international integration.

In his interview with the Vietnam News Agency’s Affairs, DeputyMinister of Science and Technology Tran Viet Thanh said that IP rightshave become a pillar of international economic integration activitiesand Vietnam has no choice but to effectively ensure them.

IP rights have been at the centre of Vietnam’s current negotiationsto join international establishments, from the World Trade Organisationto the Trans-Pacific Partnership.

In Vietnam, IPrights have played an increasingly important role in boosting economicdevelopment and local enterprises have already begun using IP rights totheir advantage, contributing to the country’s socio-economicdevelopment, Thanh said.

It is, however, stillwell below potential and many Vietnamese enterprises do not have highvalue or competitiveness at domestic and international levels.

A major contributing factor to these issues is a lack of investmentin research and development among small- and medium-sized enterprises,according to Thanh.

Regarding the enforcement ofthe law on IP rights, Thanh said there has been significant progressproducing positive results against increasingly complicated IP rightsinfringements.

According to statistics from theMarket Surveillance Agency under the Ministry of Trade and Industry, theagency discovered 17,400 cases of producing and trading fake goods andcommitting IP rights infringements, fining a total of 36 billion VND(1.67 million USD).

According to an incompletereport from the Ministry of Science and Technology (MoST), there were1,106 industrial IP infringements alone in 2014, mostly involvingbrands, and levied a combined 15.5 billion VND (720,000 USD) in fines.

The agencies emphasised that these violations arejust the tip of the iceberg and it is extremely difficult forauthorities to control all fake goods outlets.

According to the Vietnam Association for Anti-counterfeiting andTrademark Protection ( VATAP ), fake goods in Vietnam are not limited toa specific sector but rather occur in 31 types of goods, most commonlycosmetics, electronics, kitchenware, beer and wine.

Tran Minh Dung, Chief Inspector of the MoST, said in 2014 his agencyreceived 64 complaints on industrial IP rights infringements, up from 46a year prior.

According to lawyer Le Xuan Thao,a member of the Vietnam Lawyers Association and Chairman of the Boardof Directors of the IP Company Invenco, said the sanctions against IPrights infringements need to be tougher to counter the increasinglycomplicated breaches.

The maximum fine of 500million VND (23,200 USD) for each offence is too lenient and theGovernment ought to use additional forms of punishments such asmandating offenders to compensate the affected companies or confiscatecounterfeit goods.

According to Thao,overlapping enforcement mechanisms and loose cooperation betweengovernmental agencies is also contributing to the inefficiency of thelaw.

There are as many as seven agencies takingpart in the enforcement of the law: Market Surveillance, Customs, BorderGuards, Maritime Police, Police, Tax Agency and inter-sectorinspectorates.

Le The Bao, Chairman of theVATAP, cited 35 decrees regarding fake goods and food safety regulationsas another example of overlap and confusion.

Beyond efforts by governmental agencies, Bao suggested enterprisesshould take appropriate actions to protect themselves.

According to Bao, the community is unaware of IP rights due to a lackof attention from enterprises and lack of cooperation with governmentagencies.

As such, it is essential to have anadequate legal framework to protect local enterprises and weed outweaker market enterprises who do not abide by the law.-VNA

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