THE BUSINESS INFORMATION CENTER AT THE VIETNAM CHAMBER OF COMMERCE AND INDUSTRY

February 2004

   

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Issue No. 22
Access to land
:: Article  :: Viewpoints
 

Issue No. 21
The state capital
investment corporation
:: Article  :: Viewpoints
 

Issue No. 20
Streamlining the
business startup process
:: Article  :: Viewpoints
 

Issue No. 19
Effective Implementation of the new Enterprise and Investment Laws
:: Article  :: Viewpoints
 

Issue No. 18
Starting a business in Vietnam
:: Article  :: Viewpoints
 

Issue No. 17
Streamlining
Business Licensing
:: Article  :: Viewpoints
 

Issue No. 16
Women's entrepreneurship
:: Article  :: Viewpoints
 

Issue No. 15
Private Credit Bureaus
:: Article  :: Viewpoints
 

Issue No. 14
Efforts in improving business environment
:: Article  :: Viewpoints
 

Issue No. 13
Corporate governance
:: Article  :: Viewpoints
 

Issue No. 12
The common investment law
:: Article  :: Viewpoints
 

Issue No. 11
Private sector firms
:: Article  :: Viewpoints
 

Issue No. 10
The unified enterprise law
:: Article  :: Viewpoints
 

Issue No. 9
Investment incentives
in Vietnam
:: Article  :: Viewpoints
 

Issue No. 8
Business Environment in Vietnam - Overview 2004
:: Article  :: Viewpoints
 

Issue No. 7
Business Development Services
:: Article  :: Viewpoints
 

Issue No. 6
Local governance
& Economic growth
:: Article  :: Viewpoints
 

Issue No. 5
SOE Valuation
:: Article  :: Viewpoints
 

Issue No. 4
Corp. Social Responsibility
:: Article  :: Viewpoints
 

Issue No. 3
Trademark protection
:: Article  :: Viewpoints
 

Issue No. 2
The stock market
:: Article  :: Viewpoints

 

Issue No. 1
The revised draft Land Law
:: Article  :: Viewpoints

 

 

VIEWPOINTS
 
Limited understanding of TM issues among businesses  

and lack of available quality consulting services

 

  • When Trung Nguyen Coffee (TN) first filed its trademark registration application in the United States, we learned that a US-based company had already filed an application for this trademark and was awaiting approval. We were determined to reclaim our trademark and hired a lawyer to help us, and simultaneously began to look into why that company filed to register our trade name. We found out that the company is a distributor of agricultural products who was aware that "Trung Nguyen" is a well-known Vietnamese trademark and therefore filed to register the Trung Nguyen trademark in order to secure sole-distributor status of "Trung Nguyen" products in the US. After lengthy negotiations, this company agreed to withdraw its application with the condition that that it be given sole-distribution rights of our coffee in the US for 2 years.
    Not only was our trademark stolen, but the web domain of "trungnguyen.com" was also registered by an overseas Vietnamese in the Czech Republic who is now offering to sell it at an extremely high price. The lesson that Trung Nguyen has learned and now wants to share with other businesses is that lack of understanding of trademark issues can cost you dearly. Business with well-known trade names domestically still need to start from scratch in international markets. More than anyone else, each business should fully understand the value of its own trademark; external consultants can only help express an idea and take care of printing, making signs, etc…but it is the company that lives and works with its trademark.

Vo Thi Ha Giang, Public Relations and Advertising Officer, Trung Nguyen Coffee Co. Ltd.


  • Although businesses now have better understanding of trademarks, they are currently faced with the problem of not knowing where to start in terms of developing their trademark. Even after attending training courses in trademark development, managers still don't know what to do, where to start, because what they have learned is theoretical.
    Looking at the supply-side of services, it is very hard to find a consulting firm with strong expertise in marketing and branding. Many businesses do it themselves rather than hire consultants because they have used consultants in the past and were disappointed with the results. A number of businesses have asked me to help them identify foreign consulting firms. Foreign firms have better technical knowledge and expertise, but Vietnamese firms are much better at understanding local culture and mindset, which is very important for success in trademark development. Domestic consulting firms need to focus on developing a specialization in trademark development services to meet this increasing demand.

Mr. Vu Quoc Chinh, Marketing Lecturer,
Department of Commerce, Tourism and Marketing, Ho Chi Minh City Economic University


  • If the general public had a better understanding of trademark issues, trademark protection would be more effective. Better awareness would help reduce violations and create social pressure against fake and imitation goods. It may be worthwhile to consider adding IP into university curricula, particularly for students studying technology and law. When I was studying in Russia 20 years ago, IP was an official subject taught in Russian universities.
    In terms of understanding of the issue by Vietnamese businesses, many complain that the legal framework does not protect their trademark and trade names in all business lines. For example, Thien Long ballpoint pen company has requested that no other company, regardless of business line, be allowed to "Thien Long" as a trade name. This is an unreasonable request, and is due to the company's lack of knowledge. According to the international treaties that Vietnam has acceded to, trademarks are only protected by product and/or service line (34 product lines and 11 service lines). So in the case of Thien Long ballpoint pen company, its trademark is only protected in the stationery product line. Companies in other product and service lines are legally allowed to use "Thien Long" as their company trade name.

Mr. Tran Viet Hung, Deputy Director General,
National Office of Intellectual Property of Viet Nam


  • A trademark is an asset. In other countries, companies with well-known trademarks list the value of their trademark as an "intangible asset" on their balance sheet. Most Vietnamese businesses do not yet perceive their trademarks as an asset and therefore do not invest in its development. They are willing to invest large sums of money into new equipment or technology are reluctant to pay for developing a trademark. Many businesses feel that paying a consultant $1,000-$2,000 USD to develop a name brand is too high, yet they are willing to invest thousands of dollars to import a packaging production line, for example, only to find that their design has already been registered when they go to register the trade name and design.

Mr. Ho Vinh Thinh, Partner, Ageless IP Attorneys & Consultants


  • From the time a business develops its strategy, through the processes of product concept, design and test production to full commercial production normally takes at least 12 months. In that time, businesses should already be thinking about registering their trademark and coming up with a strategy to develop the trademark for the product they plan to launch. Trademark imitation or theft only happens when a company's product has achieved a good reputation and position in the market. If the business had prepared well in advance, it would have a solid legal position from which to protect itself once its product is in the market.

Mr. Pham Vu Khanh Toan, Attorney-at-Law, Pham & Associates


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