Tag Archives: Vietnam

IP Considerations for the Automotive Industry in South-East Asia

Posted on by
Reply

shift-1838138_1920 In today’s blog post we are taking a closer look at IP protection in South-East Asia for the Automotive Industry, which continues to offer many business opportunities for the European SMEs. You will learn about patent protection and when it would be wiser to relay on trade secrets instead. We will also discuss how you can protect the design of your products and how to take care of your brand. 

The automotive industry in South-East Asia has exhibited robust growth over the last few years. According to the latest statistics from the ASEAN Automotive Federation, combined motor vehicle sales in 7 major ASEAN countries (Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam and Brunei) reached 3.16 million in 2016[1], almost double the sales figure in 2006. Underpinned by increasing disposable income throughout the region and increasing demand for motor vehicles South-East Asia’s automotive market is expected to continue to grow rapidly. This also means that there will be promising business opportunities for European SMEs whose expertise and technology are especially sought after.

Taking into account the constant innovation that is at the forefront of the automotive industry, the importance of intellectual property as well as its protection and enforcement, are undeniable. Thus, when exploring the possibility of investing or expanding into the South-East Asian markets, European SMEs should be aware of the IP risks that they will face when operating in this region, in particular with respect to the new technologies and the ability to protect these technologies from local competitors. A comprehensive IP strategy is needed for succeeding in South-east Asia’s markets. Continue reading “IP Considerations for the Automotive Industry in South-East Asia” »

Enforcing IP Rights with the Customs in Vietnam: A Case Study

Quote

Posted on by
Reply

shutterstock_118547785Border control can be an effective means for European SMEs for enforcing their IP rights in Vietnam, and it serves the purpose of preempting and suppressing IP counterfeits of SMEs’ products at Vietnam’s borders. Border control has gained more attention over the past few years from business owners wishing to protect their IP in Vietnam as the Vietnamese government recently granted the Customs more powers, making it more efficient.

Even though, Vietnamese Customs are actively looking for possible infringing products crossing the border of the country, it is advisable for the European SMEs to actively cooperate with the Customs authorities by recording their IP with the Customs and by actively monitoring the market and letting the Customs know of suspected infringing shipments, to fully benefit from the Customs protection.

How does Customs Protection Work

Vietnamese customs laws prohibit the importation of goods that infringe IP Rights, and Vietnamese Customs has the authority to impose fines on infringers and confiscate infringing goods for import. However, infringing goods for export are not subject to any penalties imposed by the Vietnamese authorities so far. If the infringement of IP Rights exceeds a certain threshold, the Customs authorities can also arrange criminal proceedings to be brought against the infringing party. Continue reading “Enforcing IP Rights with the Customs in Vietnam: A Case Study” »

IP Considerations for ICT Industry in South-East Asia

Quote

Posted on by
Reply

The ICT sector is considered to play a pivotal role in supporting regional integration and connectivity efforts between the countries in South-East Asia. The latest ASEAN ICT Industry Masterplan 2016-2020 aims to propel ASEAN towards a digitally-enabled economy that is secure, sustainable, and transformative and to enable an innovative, inclusive and integrated ASEAN Community[1]. The ICT industry is one of the sectors presenting major business growth opportunities for EU SMEs in South-East Asia.

technology-2082642_1280

Continue reading “IP Considerations for ICT Industry in South-East Asia” »

Explaining the New Regulations of Foreign Contractor Withholding Tax on Trade Marks in Vietnam

Posted on by
Reply

shutterstock_81193486-520x345In today’s blog post we asked our IP expert Mr. Son Doan to clarify the provisions of the Official Letter on taxing the transfer of the right to use trade marks, issued by the Ministry of  Finance of Vietnam. 

On 7 November 2016 the Ministry of Finance of Vietnam issued the Official Letter 15888/BCT-CST to provide detailed guidance on foreign contractor withholding tax (FCWT) applicable to income of foreign contractors from transfer of right to use a trade mark. According to the Official Letter:

  • Pursuant to the Law on Intellectual Property, when a Vietnamese party uses a trade mark and makes payments to a foreign party for the transfer of use right, this should be considered as transfer of the right to use a trade marks in accordance with the Law on Intellectual Property, distinguishable from the assignment intellectual property rights.
  • As a result the income of foreign contractors from transfer of the rights to use a trade mark should be subject to FCWT with applicable tax rates as follows:
    • CIT rate on taxable revenue is 10%
    • VAT rate is 10% (if foreign contractor declare VAT under the credit method) or 5% (if foreign contractors declare VAT under the deemed method).

This means that if a foreign owner fully transfers the ownership of a trade mark to a Vietnamese party, there will be no taxes applied. However, if the foreign company merely grants the right to use the brand to the local Vietnamese businesses, then Vietnam tax authorities will collect the CIT and also the VAT.  Continue reading “Explaining the New Regulations of Foreign Contractor Withholding Tax on Trade Marks in Vietnam” »

Patent Prosecution Highway Pilot Program and Patent Information Data Exchange Between Vietnam and Japan

Posted on by
Reply


patent-prosecution-highwayToday’s blog post has been kindly drafted for us by our IPR experts Mr. Max Ng and  Ms. Amira Nabila Budiyano from the Gateway Law Corporation, who will discuss the Patent Prosecution Highway Pilot Program between Vietnam and Japan. The Patent Prosecution Highway Pilot Program is important as it can accelerate the examination of patent applications in Vietnam. The experts will explain how the Patent Prosecution Highway works and how SMEs from Europe and around the world can benefit from the program.  

Background 

One of the problems currently faced by the National Office of Intellectual Property of Vietnam (“NOIP”) is the increasing backlog of patent applications, which is one of the main reasons for the delayed examination of patent applications in Vietnam. This may adversely affect the quality of patent examination, as the bigger the backlog, the less time the examiners would have for reviewing the patent applications. The backlog of patent applications may further hinder the innovation process of the country while also posing a real concern to foreign businesses and investors wanting to venture into the Vietnam market. The Patent Prosecution Highway Pilot Program between the NOIP and the Japan Patent Office (“JPO”), which came into effect on 1 April 2016, is therefore a much welcomed move by the NOIP to cope with the increasing backlog and accelerate examination of patent applications in Vietnam. Continue reading “Patent Prosecution Highway Pilot Program and Patent Information Data Exchange Between Vietnam and Japan” »