Intellectual Property Regulations When Expanding Business Abroad
1. Understanding Vietnam’s Intellectual Property Legal System – The Foundation for Global Expansion
1.1 Vietnam’s Intellectual Property Law – The Latest Updates
The current legal framework for intellectual property rights (IPR) in Vietnam is based on the 2005 Intellectual Property Law, which has been amended in 2009, 2019, and most recently in 2022. These updates demonstrate the legal system’s adaptability to international development trends.
Implementation documents such as Decree No. 65/2023/NĐ-CP, Circular No. 23/2023/TT-BKHCN, and regulations on sanctions (e.g., Decree No. 11/2023, Decree No. 46/2024) ensure stricter and more efficient enforcement of the law.
1.2 Territorial Principle and the Challenges of International Expansion
A critically important principle that Vietnamese businesses must understand when expanding abroad is the territorial principle in IP protection. According to this principle, intellectual property rights are only valid in the country where the registration is made.
In practice, registering a trademark or patent only in Vietnam means that it is not protected in any other country. A typical example is the “Đăk Lăk” coffee brand, which was registered exclusively by a company in France, despite being used widely in Vietnam for years. This serves as a wake-up call: businesses expanding internationally must proactively register IP in each target country or utilize international mechanisms such as the Madrid System (for trademarks) or PCT (for patents).
2. Strategic Protection of IP When Doing Business Internationally
2.1 Leveraging International Mechanisms – From Trade Agreements to Centralized Registration
Vietnam has joined several new-generation free trade agreements (FTAs) such as EVFTA, CPTPP, and others, which elevate the standards for IP protection far beyond those in older agreements like TRIPS.
These agreements bring tangible benefits such as:
Transparent and streamlined procedures for industrial property registration, with online application options.
Unified legal frameworks among member countries, enabling businesses to file oppositions or provide feedback on applications.
Improved legal environments, enhancing the protection of Vietnamese brands and innovations abroad.
The use of international mechanisms such as the Madrid System (for trademarks) allows businesses to register in up to 124 countries with a single application and fee. This is a major advantage for protecting the “Made in Vietnam” brand worldwide.
2.2 Integrating IP Into Business Strategy – Avoid “Fixing the Barn After the Cow is Lost”
Registration is just the beginning. Businesses must embed IPR activities into their overall business strategy, which includes:
Creating – Registering – Using – Protecting IP proactively from the start of export product or international brand development.
Mitigating risks in international negotiations and contracts: With clearly defined IP rights, companies hold stronger positions, avoiding price pressure or loss of control over core products or technologies.
Strengthening internal capabilities: Regular training, IP knowledge updates, and connecting with government authorities and professional IP bodies.
3. Current Status, Legal Bottlenecks, and Direction for IP Law Reform in Vietnam
In the context of integration and digital transformation, Vietnam’s IP legal framework still faces several legal “bottlenecks”:
Lack of a unified definition of intellectual and digital assets.
Absence of legal framework for AI-generated content, non-personal data rights, and digital assets.
Challenges in enforcing rights in the digital environment, especially with online infringements.
Limited infrastructure for valuation and commercialization of scientific research results.
However, the development path is clear: According to Resolution No. 57-NQ/TW dated December 22, 2024, Vietnam prioritizes the development and refinement of laws related to IP, digital assets, and data – laying the groundwork for innovation and digital economic growth.
4. Conclusion
Do not stop at registering in Vietnam – IP rights are only valid within the registered territory.
Leverage international mechanisms like the Madrid System, PCT, and FTA commitments to protect your brand or invention in target markets.
Make IP an integral part of your business strategy, rather than reacting only when disputes arise.
Stay updated with the evolving legal framework to remain proactive – especially in this era of digitalization and deep global integration.
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