PART III: DIFFICULTIES AND SOLUTIONS
1.
Difficulties in protecting trademark
- Low awareness
The biggest challenges is that many enterprises are not aware of the very basics
about the labeling process. Currently, about 20% of the trademark owners just
tend to protect their properties. Others ignore as they are lack of international
business experiences and they do not suppose trading overseas is such
complicated. Even worse, some entrepreneurs simply think they created a
trademark then they certainly have the right to use it.
- High registered fee
Charges for registration in Vietnam as well as foreign markets are fairly
expensive; for instance it costs US$ 1200-1600 to register in the Unites State.
Currently, due to the requirement by the government, many law firms can’t offer
intellectual property services. The rule means only 10 such companies existed in
Vietnam so far. Owing to the small number of intellectual property companies,
the fees for registering trademark are high. Local companies don’t want to pay
such large amounts to protect their trademarks and that’s why they keep losing
them to others.
- Insufficient in the process of trademark registration
Many businessmen complaint that the trademark process in Vietnam is poorly
co-ordinated and not accessible enough. They pointed out that it is difficult to
obtain even the most basic information necessary to the process - the list of
trademarks already registered.
Moreover, all trademark enquiries and applications are handled by a single office,
the National Office of Industrial Property, which is located in Ha Noi. As it has
no representative branches, many businesses outside the capital city find it
inconvenient to contact. The director of the office also admitted that because the
office is understaffed, applications can take up to three months to process.
2. Solutions
a. In terms of the State
- Perfect legal system and regulations, rising awareness of businesses in
protecting their intellectual property rights and patents.
- Hold courses to train businesses on how to protect their products and
intellectual property when entering foreign markets, also take the active
approach of offering free advice and sending official forms to businesses to
encourage them to apply for trademarks.
- Allow more law companies to offer intellectual property services. It means
businesses will be more convenience to have their trademarks registered.
Law companies are the best consultancy helping enterprises to get
information of intellectual property. They are also on behalf of enterprises
dealing with registered process.
- Simplify the procedures of registering trademark. This measure will make
enterprises easier to register trademarks and stimulate registration.
b. In terms of enterprises
Having studied the important role of trademark in international trade, Vietnamese enterprises
have to make prompt effort to protect their own trademarks in oversea market, where they
are very vulnerable to attack.
- Register trademark
Enterprises should ensure that registering their trademarks forms a part of their mid-term
and long-term business strategies.
In Vietnam market, trademarks are registered in the Vietnamese National Office
of Industrial Properties (NOIP).
If trademark is used in foreign market, it needs to be registered directly in Patent
and Trademark Office of the host; through NOIP; or through the International
Bureau of WIPO (World Intellectual Property Organization);
It’s likely that the registered fee costs some certain amount of money, but
compared with the fee of obtaining the loss trademark, or the value of trademark
in potential markets, it’s only a small amount. Businesses should know that
prevention is better than cure.
Enterprises can register trademark by themselves or authorize service company
to do so. Some references are The Invention Company (www.invenco.vnn.vn ),
Baker & McKenzie or Pham& Associates.
- Trademark franchising contracts
In order to protect trademark abroad, the Vietnamese enterprises should sign the
trademark franchising contracts with foreign partners. Small and medium
enterprises, which don’t have the wherewithal to protect their trademarks
internationally, could do in this way. This could prove a most effective measure
against the loss of trademarks affecting Vietnamese companies at the moment.
The pioneer in this method is Asia Silk Company, well known at home for its
“AQ Silk”, signed a deal worth $100,000 to sell its trademark to Nguyen Canh
Ky, an overseas Vietnamese. This deal would endure protection of AQ’s
trademark in the US.
- Joint operation or joint venture contracts
This solution requires the international corporation and large capital to transfer
the technology. It seems suitable with the bigger enterprises had a good relation
with foreign partner. Thai Tuan Textile (Thatexco) was thinking about this way to
establish joint operation with foreign partner.
- In case of not possible to register, it’s essential for enterprises to check
the website of WIPO (www.wipo.org) or some other related sites such as
www.uspto.org, www.intellasia.com …. Just by typing their trademarks and
clicking the mouse, they will be able to discover the rival’s attempts to take their
names and make the prompt measures.
