Source: http://www.iclg.co.uk/practice-areas/patents/patents-2017/vietnam
Timestamp: 2016-10-23 17:55:36
Document Index: 132829540

Matched Legal Cases: ['Art. 58', 'Art. 2014', 'Art. 59', 'Art. 8', 'Art. 86', 'Art. 8', 'Art. 18', 'Art. 18', 'Art. 171']

Vietnam - Patents 2017 · ICLG - International Comparative Legal Guides
Home Practice area Patents Patents 2017 Vietnam
Patents 2017 Order the Book
Published: 24/08/2016
Patent Enforcement Back to top
Vietnam has no specialised IP court. Patent owners may enforce their IP rights by initiating civil litigations before civil courts, which are called People’s Courts, of provinces or centrally-run cities. A defendant’s domicile, workplace or place of his/her head office or the locality of the infringement would determine the court that has jurisdiction over a case.
1.2 What has to be done to commence proceedings, what court fees have to be paid and how long does it generally take for proceedings to reach trial from commencement?
Before commencing proceedings in the court, it is common for a letter of demand to be first sent to an alleged infringer in an attempt to reach a resolution of the dispute without the need for court action. If no resolution can be reached, a legal action is commenced with the filing of the plaintiff’s complaint with a competent court. A request for applying provisional measures may be submitted at the time of filing the petition or during the settlement of the case.
The court would officially accept the case after the applicant submits a receipt for the payment of court costs and/or court fees as regulated in Ordinance No. 10/2009/UBTVQH12 of February 27, 2009 on Court Costs and Fees. At this time, concerned parties have the right and obligation to lodge requested opinions and evidence with the court. The court may collect or request relevant authorities to collect evidence concerned upon the request of either the plaintiff or defendant.
The time limit for pre-trial procedural stages ranges from two to four months. The court may decide to extend the time limit for preparation of the trial, but it shall not exceed six months in any case. However, in practice, the first instance trial often lasts from 12 months to 18 months.
During the period of the pre-trial procedural stage for a trial at first instance, the court shall carry out conciliation to enable the parties to reach an agreement on the settlement of the case. If negotiation between the parties fails, the court shall issue a decision to bring the case to a hearing.
A first instance trial must be conducted within one month from issuance of the decision to hear the case.
1.3 Can a party be compelled to disclose relevant documents or materials to its adversary either before or after commencing proceedings, and if so, how?
The mechanism of discovery of evidence does not exist in Vietnam. However, for collecting evidence that is under the control of the other party, either the plaintiff or defendant has the right to request that the court compel the party to produce such evidence. Art. 58.2.d) of the Civil Procedure Code states that the involved parties shall have the right “to read and take notes, photocopy documents and/or evidences produced by other involved parties or collected by courts” when participating in civil procedures.
In the case of infringement of a patented process, the defendant is compelled to show evidence to prove that his/her products are made by a process other than the patented process.
1.4 What are the steps each party must take pre-trial? Is any technical evidence produced, and if so, how?
There is no specific pre-trial procedure; it is up to the parties to prepare any evidence, including pleadings, reports, witnesses’ statements, and experts’ opinions (technical), which they consider necessary for proving their case.
Concerned parties have the right to request that the court provide them with the evidence submitted by the other party. When deeming it necessary, the trial panels may arrange for the audio tapes and/or discs to be heard, and/or video tapes and/or discs to be screened at court sessions, except for the cases in which it is necessary: to keep State secrets; to preserve the nation’s fine customs and practices; to keep professional secrets, business secrets or private secrets at the requests of the involved parties; or to go together with the involved parties for on-site examination of exhibits which cannot be brought to court sessions.
1.5 How are arguments and evidence presented at the trial? Can a party change its pleaded arguments before and/or at trial?
In general, a lawsuit petition is filed together with documents and/or evidences and an explanation sheet to prove that the claim(s) of a litigator are well-grounded and lawful. Arguments are presented orally to the judging panel at the trial.
The judging panel would consider evidences, photographs and records of confirmation of evidences at the trial.
If necessary, the judging panel shall arrange for the listening of audio tapes and discs and screening of video tapes and discs during the trial.
A party can change its pleaded arguments and/or make additional comments at trial, provided that the changes to the arguments are based on the documents and evidence that have been collected, examined and verified at court sessions, as well as the results of the inquiring process at court sessions.
1.6 How long does the trial generally last and how long is it before a judgment is made available?
The trial hearing can last one day or several days, depending on the complexity of the case.
The judgment is often pronounced right after the hearing. Within a time limit of 10 days from the date of pronouncement of the judgment, the court shall deliver or forward the judgment to the concerned parties.
1.7 Are there specialist judges or hearing officers, and if so, do they have a technical background?
No. There are no specialised intellectual property courts or specialist judges in the People’s Court.
1.8 What interest must a party have to bring (i) infringement, (ii) revocation, and (iii) declaratory proceedings?
(i) The plaintiff must be the owner of the patent or an exclusive licensee with proper licensing recordation at the National Office of Intellectual Property of Vietnam (NOIP).
(ii) Any party is entitled to request the NOIP to take a patent revocation if: (a) the applicant for the patent has neither the right to file the application, nor has been assigned such right; and (b) the subject matter of industrial property failed to satisfy the protection conditions at the grant date of the patent.
(iii) Declaratory proceedings are not applicable in this jurisdiction.
1.9 If declarations are available, can they address (i) non-infringement, and/or (ii) claim coverage over a technical standard or hypothetical activity?
Declarations are not available in Vietnam.
1.10 Can a party be liable for infringement as a secondary (as opposed to primary) infringer? Can a party infringe by supplying part of, but not all of, the infringing product or process?
No. There is no secondary/contributory infringement provided for under Vietnamese law.
1.11 Can a party be liable for infringement of a process patent by importing the product when the process is carried on outside the jurisdiction?
Yes. A party can be liable for infringement of a process patent by importing the product when the process is carried on outside the jurisdiction.
1.12 Does the scope of protection of a patent claim extend to non-literal equivalents?
Yes. “Equivalents” of the claimed subject liable for infringement covers both product and process. In particular, an infringing element of an invention may take any of the following forms:
(i) a product or part (component) of a product which is identical or equivalent to a product or part (component) of a product within the scope of protection as an invention;
(ii) the process is identical or equivalent to a process that is protected as an invention; or
(iii) the product or part (component) of the product is manufactured via a process that is identical or equivalent to a process currently protected as an invention.
1.13 Can a defence of patent invalidity be raised, and if so, how? Are there restrictions on such a defence e.g. where there is a pending opposition?
A defence of patent invalidity can be raised (see question 1.16 below). There are restrictions on such defence; for instance, the court can stay the infringement proceedings pending the opposition proceedings settled by the NOIP.
1.14 Other than lack of novelty and inventive step, what are the grounds for invalidity of a patent?
Other grounds for invalidity of a patent include the following:
(i) the subject matter lacks industrial applicability;
(ii) the subject matter is unpatentable (see question 5.1); and
(iii) the patentee was not entitled to file the application for the subject matter.
1.15 Are infringement proceedings stayed pending resolution of validity in another court or the Patent Office?
The court may decide to temporarily suspend the civil lawsuit while the resolution of validity is in progress.
1.16 What other grounds of defence can be raised in addition to non-infringement or invalidity?
The other grounds of defence that can be raised, apart from non-infringement or invalidity, are:
(i) using the subject of the patent for personal needs or non-commercial purposes, or for the purposes of evaluations, analysis, research, education, testing, pilot production or for collecting information to carry out procedures to obtain a production licence, import or product marketing permit;
(ii) circulating, importing or exploiting the products having been legally put into the market, including foreign markets;
(iii) using the subject of the patent only for the purpose of maintaining the operation of a foreign vehicle in transit or only temporarily entering into the territory of Vietnam;
(iv) using the subject of the patent by the person with prior user right; and
(v) using the invention by the person authorised by the competent State authority in the case of a compulsory licence.
1.17 Are (i) preliminary, and (ii) final injunctions available, and if so, on what basis in each case? Is there a requirement for a bond?
(i) Preliminary injunctions are available at the court’s discretion. The petitioner must prove that the alleged infringement is likely to cause irreparable damage, or that the product suspected of infringing the patent rights or relevant evidences is likely to be destroyed, if not protected. The preliminary injunctions must be secured by a bond of 20% of the value of the goods that are subject to the application of provisional measures, or at least VND20 million if it is unable to determine the value of those goods or a guarantee document issued by a bank or other credit organisations.
(ii) A court judgment that comes into force shall become a final injunction. The court judgment of the first instance trial will be enforceable if it is not appealed to the People’s Supreme Court.
The judgment of the appellate court shall be legally enforceable as of the date of the pronouncement of the judgment.
1.18 On what basis are damages or an account of profits assessed?
Art. 2014 of the IP Law provides the rules of determination of damages, which consists of material damages (i.e., property loss, income and profit decrease, loss of business opportunity, etc.) and spiritual damages (i.e., damage to honour, dignity, prestige and reputation, etc.) caused by infringement of intellectual property rights. The burden of proving and calculating material damages lies with the plaintiff.
Damages/compensation can be calculated on the following grounds:
(i) The equivalent in money of the total physical damage caused, plus the profits gained by the dependant from the act of infringement if the reduced profits of the plaintiff have not yet been included in the total physical damage.
(ii) The value of the presumption that the defendant has been licensed by the plaintiff under a licence contract, to the extent that is equivalent to the infringing act committed.
(iii) Where it is unable to determine the rate of compensation, compensation shall be fixed by the court but shall not exceed VND500 million.
(iv) Where the plaintiff succeeds in proving that the act of infringement has caused spiritual damage to him/her, he/she shall have the right to request that the court determine the rate of compensation ranging from VND5 million to VND50 million, depending on the level of damage.
1.19 What other form of relief can be obtained for patent infringement? Would the tribunal consider granting cross-border relief?
The court may order: (i) termination of the infringing act; (ii) public rectification and apology; (iii) performance of civil obligations; (iv) compensation of damages; and (v) destruction or disposal of infringing goods for non-commercial purposes. Cross-border relief is irrelevant to Vietnam and therefore is not applicable.
1.20 How common is settlement of infringement proceedings prior to trial?
In principle, the settlement of patent infringement proceedings before trial in Vietnam can be reached via arbitration, mediation or conciliation procedures. However, in practice, an arbitration deals with disputes arising from a contract, but not that which arises from a patent infringement, while mediation is not a popular approach for a settlement of patent infringement in similar cases. As a result, the parties concerned often reach a settlement prior to trial by conciliation, followed by the withdrawal of the statement of claims filed by the plaintiff.
In addition, administrative actions are a common measure to act against IP infringement in Vietnam. Such an administrative action is able to help the IP owner to obtain sufficient evidence materials not only for a follow-up settlement negotiation, but also for a possible civil action initiated by the IP owner. In many cases, a settlement is reached after an administrative raid, without initiating a civil action against the infringer.
1.21 After what period is a claim for patent infringement time-barred?
The statute of limitation for initiating a lawsuit against infringement is two years from the date on which the infringement is discovered, or two years from the date on which the legitimate rights and interests of individuals/organisations are infringed.
1.22 Is there a right of appeal from a first instance judgment, and if so, is it a right to contest all aspects of the judgment?
Concerned parties have the right to appeal the first instance judgment to a higher court, and contest part of, or all, aspects of the judgment.
1.23 What are the typical costs of proceedings to first instance judgment on (i) infringement, and (ii) validity? How much of such costs are recoverable from the losing party?
The costs are calculated on a case-by-case basis, depending on the complexity of the case, etc.
Regarding a civil lawsuit, attorneys’ fees are estimated at about US$10,000 and are charged based on the work undertaken.
The winning party can recover these costs to the extent depending on its claim for damages. The claim for damages must be calculated on the damage incurred by the party.
1.24 For jurisdictions within the European Union: What steps are being taken in your jurisdiction towards ratifying the Agreement on a Unified Patent Court, implementing the Unitary Patent Regulation (EU Regulation No. 1257/2012) and preparing for the unitary patent package? For jurisdictions outside of the European Union: Are there any mutual recognition of judgments arrangements relating to patents, whether formal or informal, that apply in your jurisdiction?
Vietnam has no mutual recognition of judgments arrangements relating to patents, whether formal or informal, with any country or regional organisation. However, results of substantive patent examination conducted by the following entities:
(i) the International Searching Authorities and International Preliminary Examining Authorities under the Patent Cooperation Treaty (PCT); and
(ii) the Patent Offices of: the United States; Canada; Japan; the Russian Federation; the United Kingdom; Sweden; Spain; Australia; China; the Republic of Korea; Germany; the European Patent Office; and the Eurasian Patent Organisation (EAPO),
might be considered as a basis for granting a patent in Vietnam.
Patent Amendment Back to top
A voluntary amendment may be requested by the patent owner in order to narrow the scope of the granted patent.
During revocation/invalidity proceedings before the court or during opposition proceedings before the NOIP, the scope of the granted patent can be narrowed by cancelling one or more claims.
A granted patent can only be amended by cancelling one or more claims. Rewording the claims is not allowed.
Yes. Limitation of the terms upon which parties may agree a patent licence is mainly provided for in the IP Law. The following matters must not be included in the licence agreement:
(i) Prohibiting the licensee from improving the licensed object, or compelling the licensee to grant a free licence or to assign to the licensor the right to improvements of the licensed object.
(ii) Directly or indirectly restricting the licensee from exporting goods produced under the industrial property object licence contract to the territories where the licensor neither holds the respective industrial property right, nor has the exclusive right to import such goods.
(iii) Compelling the licensee to buy all, or a certain proportion of, materials, components or equipment from the licensor or the persons designated by the licensor without aiming at ensuring the quality of goods produced or services supplied by the licensee.
(iv) Prohibiting the licensee from complaining about the validity of the industrial property right or the right to licence of the licensor.
Yes. A patent can be subject to a compulsory licence. However, to the best of our knowledge, none have been granted.
Compulsory licences can be granted if:
(i) the use of the invention is in the public interest, or for non-commercial purposes, national defence, security, disease prevention and treatment, nutrition for people, or meeting other urgent needs of society;
(ii) the exclusive patent right holder fails to fulfil the obligation of using the invention after the expiration of four years from the date of the filing of the patent application and the expiration of three years from the granting date of the patent for invention;
(iii) the person who wants to use the invention fails, despite efforts made within a reasonable period of time for negotiation on reasonable considerations and commercial conditions, to reach an agreement with the exclusive patent right holder upon the conclusion of a patent licence contract; and/or
(iv) the exclusive patent right holder is determined to perform an act of anti-competition prohibited under the laws and regulations on competition.
Upon a request of any individual or organisation, the Ministry of Science and Technology (MoST) or other relevant ministries under the guidance of the MoST may grant a compulsory licence.
The IP Law does not provide a specific term for such licences, leaving it at the MoST’s discretion.
Patent Term Extension Back to top
The term of a patent cannot be extended in any way.
Patent Prosecution and Opposition Back to top
In accordance with Art. 59 of the Vietnam Intellectual Property Law:
“The following subject matter shall not be protected as inventions:
discoveries, scientific theories, and mathematical methods;
schemes, plans, rules or methods for performing mental acts, training domestic animals, playing games, doing business, and computer programs;
solutions of aesthetic characteristics only;
processes of an essentially biological nature for the production of plants and animals other than microbiological processes; and
disease prevention and diagnostic and treatment methods for humans or animals.”
Furthermore, “the intellectual property objects which are contrary to social morality and public order, or are harmful to national defence and security” shall not be protected under Art. 8 of the same law.
No. There is no duty to disclose prejudicial prior disclosures or documents to the NOIP.
Yes. As from the date on which a patent application is published until the date of the decision on the grant of a patent, any third party may apply to oppose the grant of a patent.
The request for opposition must be in writing and specify at least one ground for opposition.
If dissatisfied with a decision from the NOIP, a petition to appeal must be filed with the Board of Appeal of the NOIP within three months from the date of the decision. If still dissatisfied with the decision on appeal from the Board of Appeal, a further appeal to the MoST can be lodged, or an appeal action can be taken before the competent administrative court.
Disputes over entitlement to priority and ownership of the invention may be resolved by the NOIP. In cases where the NOIP cannot decide on the matter, the Office will invite the competing parties to institute proceedings before a competent court. The Office will then act in accordance with the court order.
Yes, there is a “grace period” in Vietnam, and it is six months from the date of publication. During this period, an invention shall not be considered as lacking novelty if it was published under the following circumstances: (i) by another person; (ii) in the form of a scientific presentation; and (iii) it was exhibited at a national exhibition of Vietnam or at an official or officially recognised international exhibition, without permission of the person having the right to registration as provided for in Art. 86 of the IP Law.
A patent for invention shall expire 20 years after the filing date, while a patent for utility solution shall expire 10 years after the filing date.
The patentee can request that Customs suspend the suspected infringing goods. At the same time as filing the request, the patentee or its representative must submit a deposit bond or bank guarantee at an amount equal to 20% of the value of the goods that are subject to detention, or VND20 million, if the total value of the goods cannot be gauged.
Upon receiving the request and the bond (or bank guarantee), Customs is entitled to grant a decision on suspension of Customs clearance of the requested goods in 10 working days from the day the patentee or its representative receives the decision. This time limit can be extended for a further 10 days if necessary. Within the prescribed time limit for suspension, the patentee should consolidate its allegation and proceed with possible actions, including: initiating a civil lawsuit against the owner of the detained goods; requesting that Customs take administrative actions against the owner of the detained goods; or reaching an agreement with the owner of the detained goods.
Antitrust Law and Inequitable Conduct Back to top
There are no specific statutory provisions or lawsuits as a precedent in which patent infringement is denied for a reason of antitrust violation.
The prevailing Law on Competition, which is known as antitrust law in Vietnam, does not specifically provide for limitations on patent licensing. However, it prohibits the following practices:
1. obstruction of technical or technological development by any enterprise or group of enterprises in a dominant market position; and
2. agreements to restrain technical or technological developments to which the parties have a combined market share of 30% or more of the relevant market (Art. 8 “Agreements in Restrain of Competition”).
There were no significant developments in relation to patents in the last year.
The Trans-Pacific Partnership (TPP), one of the biggest multinational trade deals ever, has been signed by 12 member nations including the United States, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and PeruonFebruary 4, 2016 in New Zealand. This agreement would have adverse impact on Vietnam patent regime, especially on the patentable subject matter and patent terms adjustment to compensate for delays in issuing patents. For instance, Art. 18.37 of the TPP requests that each Party “confirm[s] that patents are available for inventions claimed as at least one of the following: new uses of a known product, new methods of using a known product, or new processes of using a known product”. Accepting this provision affirms that the protection of use inventions is admitted and, as a result, it can lead to “ever-greening” of patents which will delay entry of generics, diffusion of technology and affect access to medicines. In addition, Art. 18.46 of the TPP “Patent Term Adjustment for Patent Office Delays”, which requests that “[i]f there are unreasonable delays in a Party’s issuance of patents, that Party shall provide the means to, and at the request of the patent owner shall, adjust the term of the patent to compensate for such delays”, would be a significant challenge for the NOIP, where the backlog of unexamined patent applications is excessive. It is expected that some provisions of the IP Law and relevant under-law documents will be reviewed in forthcoming years in order to meet the requirements of TPP Agreement.
According to Art. 171 “Infringing Upon Industrial Property Rights” of the Amended Penal Code 2009, criminal proceedings are not available for patent infringements; a patentee can choose administrative action and/or civil action to protect his/her patent rights.
Pham Vu Khanh Toan
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