What is the advantages and the disadvantages of licensing contract?

Licensing of industrial property rights (Licensing) is one of the legal measures to transfer technology. In accordance with Law on Intellectual property in 2005 (amended, supplemented in 2009), licensing of an industrial property rights means permission by the owner of such industrial property object for another organization or individual to use the industrial property object within the scope of the owner's right. Licensing of industrial property rights must be established in the form of a written contract. There are three types of industrial property object licence contracts: Exclusive contract; Non-exclusive contract; Industrial property object sub-licence contract, detailing:

Industrial design in Vietnam

-Exclusive contract means a contract under which, within the licensing scope and term, the licensee shall have the exclusive right to use the licensed industrial property object while the licensor may not enter into any industrial property object licence contract with any third party and may use such industrial property object only with permission from the licensee.

-Non-exclusive contract means a contract under which, within the licensing scope and term, the licensor shall still have the right to use the industrial property object and to enter into a non-exclusive industrial property object licence contract with others.

-Industrial property object sub-licence contract means a contract under which the licensor is a licensee of the right to use such industrial property object pursuant to another contract.

What is the advantages and the disadvantages of licensing contract?

-Firstly, for licensor, licensing can be used to access new markets that are not easily accessible. By allowing the licensee the right to market and distribute the products, the licensor can more easily enter the market; Licensing contract may stipulate measures for the licensor has the right of improvements, technical know-how and related products that will be developed by the licensee during the valid term of the contract. However, the licensor may not always claim these rights, and some countries have strict restrictions on including these types of terms in the licensing contract; Licensing is necessary if the product only sells best when combined or sold for use with another product; Last but not least, the licensing contract allows the licensor to hold ownership of the intellectual property and at the same time receive licensing fees, in addition to the profits gained from self-exploitation of such assets from products or services sold or provided by that party.

Besides the advantages, the licensing contract also has some disadvantages for the licensor. The licensee may become a competitor of the licensor. The licensee may make the licensor make less remuneration than the business losses resulting from the competition of the new competitor; The licensee may unexpectedly request contributions, for example, for technical assistance, human resource training, additional technical data, etc. It is important that the licensing contract must clearly stipulate the rights and obligations of the parties, whereby any disagreements that occur in the future can be resolved quickly and effectively; The licensor's revenues depend on the skills, capabilities and resources of the licensee. This dependence is even greater in the case of exclusive licensing. The provisions of minimum wage and other provisions may be provided to avoid this, but this is still a concern.

-Secondly, for the licensee, the advantage of a licensing contract is allowing access to technology that has been developed or is available to apply for helping businesses access to the market more quicly; Small companies may not have the resources to do and carry out the research to supply new and higher quality products. The licensing contract allows enterprises access to technical advances that are difficult to achieve by other measures; Licensing may also be necessary to maintain and develop an established market position but be threatened by new designs or production methods. Access to new technology through a licensing contract is the best way to overcome this challenge; There may be many opportunities to get a license when combining with existing company technologies can create new products, services and opportunities in the new market.

-Regarding the disadvantage to the licensee, the licensee may have to make financial commitments to technology that is "not yet ready" for commercial exploitation, or need to modify the technology to meet its business needs; An intellectual property licensing contract may result in additional costs for the product. Many technologies integrated into products can create products with high technology content but are very expensive when publishing to market; Licensing may create technological dependence on suppliers, who may not extend the licensing contract and negotiate a licensing contract with other competitors to limit the market or to limit exploitation activities which was allowed in accordance with licensing contract.

If you are looking for an IP attorney, but are concerned about the typical costs associated with the traditional legal search, you should visit ANT Lawyers where we work to trim those costs. We will match you with an experienced IP attorney in Vietnam for a free, no obligation consultation. Hope this helps.

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Procedures for processing applications for registration of industrial designs

Many enterprises invest a significant amount of time and resources to improve their product design in order to match products to specific customer groups. Industrial design means the outward appearance of a product embodied in three dimensional configuration, lines, colours or a combination of such elements [Clause 13 Article 4 Law on intellectual property 2005 (IP law)] and industrial design is under industrial property rights (Clause 2 Article 3 IP law).

 Industrial design in Vietnam

There are several important reasons for enterprises to protect their designs, such as creating an appeal or attraction to customers, increasing the commercial value of the company, a key factor in the company's marketing strategy, creating an additional revenue for company either by collecting a fee from licensing the design to others or by selling the rights of the registered design.

Regarding conditions for protection of industrial designs, general conditions comprise: Novelty; Creativity; Being able of industrial application (Article 63 IP law). Three conditions are stipulated clearly at Article 65,66,67 IP law. Objects ineligible for protection as industrial designs are Outward appearance of a product which is necessarily due to the technical features of the product; Outward appearance of civil or industrial construction works; Shape of a product which is invisible during the use of the product (Article 64 IP law).

Regarding procedures for processing applications for registration of industrial designs (applications) and for granting protection titles,

Firstly, documents needed to prepare must meet the general requirements, uniformity and particular requirements on applications (Article 100,101,103 IP law). In accordance with Article 107 IP law, authorization for carrying out procedures related to the establishment, maintenance, extension, amendment, termination and invalidation of protection titles must be made in writing in the form of a power of attorney (no valid term shall be considered valid indefinitely, and validity shall be terminated only when the principal declares termination of validity). Power of attorney’ s contents  are stipulated at Clause 2 Article 107 IP law.

Secondly, the State administrative body for industrial property rights (body) receives applications for registration of industrial property if the application consists of at least the following documents and information: A declaration for registration of industrial design; Description, a set of photos and drawings and a description in the case of an application for registration of an industrial design;

Thirdly, the body examines formal applications. Valid or invalid applications shall be notified (Article 109 IP law).

Fourthly, applications which have been accepted as being valid by the body shall be published in the Official Gazette of Industrial Property in accordance with the provisions of Article 110 IP law. Applications shall be published within two months as from the date such application is accepted as being valid.

Fifthly, third party’s opinions on the grant of protection titles (Article 112 IP law).

Sixthly, examining substantive applications (Article 114 IP law).

Seventhly, an applicant shall have the following rights of amendment, supplementation, division and conversion application before the body for industrial property rights notifies a refusal or decides to grant a protection title (Article 115, 116 IP law).

Finally, the body shall decide to refuse or to grant a protection title and enter it in the National Register of Industrial Property (Article 118 IP law).

About time-limit for processing applications, an application shall have its form examined within one month from the filing date, substantively examined within six (6) months from the date of publication of the application. The time-limit for re-examination of an application shall be equal to two-thirds of the time-limit for the initial examination, and may, in complicated cases, be extended but must not exceed the time-limit for the initial examination. The duration for amendment or supplementation of applications shall not be included in the time- limits specified in clauses 1, 2 and 3 of Article 119 IP law.

If you are looking for an IP attorney, but are concerned about the typical costs associated with the traditional legal search, you should visit ANT Lawyers where we work to trim those costs. We will match you with an experienced IP attorney in Vietnam for a free, no obligation consultation. Hope this helps.

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Danang city Meeting the First Korean Consul General in Central Region

On December 16^th, 2019, Danang City held a meeting with the new Korean Consul General Mr. Ahn Min Sik, the first Korean consul general in Central Region of Vietnam. Currently, Danang is a city that attracts a large number of Korean people to travel, live and invest to set up company. Therefore, the establishment of the Korean General Consulate in Danang is an opportunity to further expand the friendly relationship between the two countries.

In addition, the representative of Danang city also expressed his desire to attract more Korean investors in such fields as tourism, high technology, information technology and other industries. And the city has also leveraged the strengths and advantages in socio-economic development of the city in recent years. The city also hopes that the establishment of a KoreanGeneral Consulate in Danang will contribute to boosting many investors fromKorea into Danang and contribute to increasing the number of Korean tourists to the city.

Mr. Ahn Min – Sik’s important tasks during his mission was to promote the attraction of Korean investment into Central of Vietnam including Danang. At the same time, further promote cooperation on the field of tourism between the two countries. According to ambassador Mr. Ahn Min – Sik, nowadays, many Korean people have come to Vietnam to travel, and his task is to make efforts for Korean tourists to return to Vietnam for the second and third time and many more after that.

Mr. Ahn Min – Sik affirmed that he would always accompany the city, making efforts for the development of Danang and South Korean localities, as well as for the good friendship between the two countries. The parties hope to have more opportunities to cooperate with each other, in all fields such as tourism, investment, culture, education,… to confirm the friendly relationship between Vietnam and South Korea in the near future.

ANT Lawyers is a law firm in Vietnam located in the business centers of Hanoi, Danang, Ho Chi Minh city. We provide convenient access to our clients. Please contact us to book your time in advance to let us provide our best services.

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Process for Trademark registration

A Trademark is a name, logo, tagline, colors that identify a product or service. Business owners are given rights on their trademarks.Trademark is essential as it protects any word, name, slogan, design, or image that identifies a business or brand and distinguishes it from others. It also gives right to the mark and allows the holder to file lawsuit against infringers. It has an unlimited term but must be renewed after every 10 years.

Trademark protection in Vietnam 

Process for Trademark registration

Before you start registration of your trademark, you need to conduct a trademark search in which you need to search the trademark database to check whether there is any other similar or identical trademark. After the completion of trademark search, Trademark registration can be filed with the fees in the Trademark Registrar. Then the registration application is allotted to a Trademark officer, who decides whether the application is accepted or rejected. If the trademark registration application is rejected, the applicant can appear before the officer to address the problem occurred at a given date and time. When the application is accepted it is published in the trademark journal with other trademark registrations for the public to see and if needed then oppose. If there is no objection within 90days then registration is accepted. But if there is an objection then a hearing is called before the Trademark hearing office where the applicant and the objecting party gives evidence for their stand. Based on the evidence and hearing the officer decides to accept or reject the Trademark registration.

If not opposed then the Trademark registration certificate will be given.

Documents Required for Trademark Registration

-Date of using the Logo/Tagline (Any supporting document for the same)

-Power of Attorney signed by the applicant

-Softcopy of the Logo/Tagline

Source: Quora

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How to Protect Business Secrets through Non-Disclosure Agreement (NDA)

In business or production process, individual or organization being may have to share its business secrets with others.  Legal solution for this situation is to enter into a Non-Disclosure Agreement agreement (NDA).

Non-Disclosure Agreement (NDA) are often used by inventors or companies when sharing business ideas, sample products which have just been created, patent and many other business secrets. This disclosure’s purpose is to explore the possibilities to cooperate, manufacture; to commercialize a particular product in relation to another company when seeking licensing contracts, financial source to develop a product; to deploy a business secret, to enter into a Merger and Acquisition transactions, or to create binding obligations on employees if they know or are known secrets of the company they are working for.

Vietnam patent 

What does the content of the Non-Disclosure Agreement (NDA) include?

NDA should begin with a clear statement of who the owner’s non-disclosed information is (owner); party who receives non-disclosed information (recipient); identify non-disclosed information and the reason for disclosing such information to the recipient. The most important thing of NDA is to identify the scope of non-disclosed information or confidential information to avoid the parties in dispute if one party discloses certain information. Another thing to keep in mind is that the NDA can achieve the purpose of the parties when stipulating clearly how the recipient has to protect that information and what is allowed or not allowed to do with that information. In particular, it is necessary to detail that the recipient has to take responsibilities if they violate the information security obligations specified in the NDA.

Besides, the parties may agree to a reciprocal NDA. Sometimes, the source of information is two-ways, both parties will then disclose confidential information to each other, for example when the two parties form a joint venture, or have intention of acquiring the target company through M&A. Accordingly, NDA will refer to the agreement of formation a joint venture, M&A which clearly states that which confidential information two parties will share, what are the rights and obligations of the two parties.

Of course, the best way to keep a secret is to not tell anyone. However, this is not always possible in the collaboration world when shared economy is thriving in Vietnam.  If the owner needs to share business secrets, they could sign with the recipient an non-disclosure agreement or contract to avoid unfortunate circumstances.

ANT Lawyers - Law firm in Vietnam could help clients to create NDA in various business transactions in M&A, joint venture, IP commercialization, labour to address the needs of business requirements in Vietnam.

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Issuing Investment Certificate for Foreign Investors

Foreign investors whom wish to carry out business in Vietnam need to have investment project proposal prepared for submission to State Authority in Vietnam.  Investment projects of foreign investors and projects of economic organizations with 51% or more foreign owned capital (except for cases of capital contribution, purchase of shares or capital contributions of economic organizations) need to follow procedures for issuing Investment Registration Certificate (IRC).

invest in  Vietnam 

Investment registration certificate records information of an investor’s registration of an investment project. In Vietnam, the agency which has competent to grant, adjust and revoke investment registration certificates is the Department of Planning and Investment or the Management Board of Industrial Parks, Export Processing Zones, High-Tech Zone and Economic Zone depending on the specific project details. The time limit for issuing investment registration certificates for each project is usually 15 days from the date of receipt of a complete application dossier submitted by the investors.

When the investors need to change the scope, purpose of an investment registration certificate, he must carry out the procedures for adjusting the investment registration certificate corresponding to the changed content. Within 10 days, this procedure will have results based on the records that investors submit to the competent authorities.

The existence of an investment project permitted by the State for an investment project in an economic zone shall not exceed 70 years; investment projects outside economic zones shall not exceeding 50 years; investment projects implemented in geographical areas with difficult socio-economic conditions, areas with exceptionally difficult socio-economic conditions or projects with large investment capital but with slow capital recovery, the term can be granted longer but not more than 70 years.

In some cases, to ensure the project implementation in Vietnam, the State issues regulations that require obligations of investor. During the operation of a project, for projects that are allocated or leased land, permitted to change the purpose of land use by the State, investors must make a deposit from 1% to 3% of the project investment capital to ensure project implementation based on the scale, property and implementation schedule of each specific project. This deposit is returned to the investor according to the progress of the investment project, unless otherwise refunded. In addition, investors are responsible for ensuring the quality of machinery, equipment, technology lines to execute investment projects in accordance with law by themselves.

In case of subjective or objective reasons, the investor is entitled to transfer the investment project, delay the investment schedule, suspend the operation of the investment project, or terminate the investment project’s operation.

It is always challenging to navigate the Vietnam regulations, especially with real estate, energy, infrastructure, manufacturing projects involving the use of land, with large scale of investment involving the authorities at provincial levels and therefore at ANT Lawyers our lawyers and consultants would assist the clients from the early stages to work with state government agencies, landlords being industrial parks, industrial processing zone to work out the land lease contract, project appraisal process, and setting up company corresponding to the needs of the investors, and finally assist the investors in obtaining Investment Certificate.

ANT Lawyers is a law firm in Vietnam located in the business centers of Hanoi, Danang, Ho Chi Minh city. We provide convenient access to our clients. Please contact us to book your time in advance to let us provide our best services.

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Danang city Builds the Business Relationship with Tochigi Province of Japan

On December 19^th, 2019, the representative of Danang city met the president of Tochigi province, lead by Mr. Fukuda Tomikazu paying a working visit in Danang.  At the moment, Japan is the top of country which invest in Danang.

Danang is receiving more than 130 investment projects and the total of investment capital is 800 million USD from Japan. The Japanese investors set up company, obtained investment registration certificate the area such as: hi-tech, supporting services, education, medical. Besides, Danang signed the official memorandum of understanding on business cooperation with some cities of Japan such as: Kawasaki, Kansai, Yokohama, Kirsarazu,… Danang show wishes to cooperate with Japan in many fields such as: economy, cultural, education,..

At the meeting, the representative of Danang city introduced the economy-social of the city and in the recent years, the cooperation relationship of Danang and Japan has been developing in many fields.

Besides, the representative of ANT Lawyers met the representative lawyers from Utsunomiya law firm of Tochigi province at ANT Lawyers Danang office. At the meeting, the parties discussed about the cooperation of helping Japanese investors to enter Vietnam market with legal services. ANT Lawyers is the law firm in Vietnam, which has the offices in Hanoi, Danang and Ho Chi Minh City.

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An Additional of 60 FDI Projects Received Investment Licenses into Hanoi

According to Hanoi’s Department of Planning and Investment, in November, the city had 60 newly licensed FDI projects with a total registered capital of 600 million USD.

Of these, there are 52 projects with 100% foreign direct investment; 8 joint venture projects. Besides, there are 8 projects being adjusted to increase investment capital with the additional capital of 6.7 million USD.

Also, in November 2019, foreign investors contribute capital and buy stakes reach 72.9 million USD.

Notably, during the recent Prime Minister’s business trip to Korea, the leader of Hanoi People’s Committee awarded 4 investment policy decisions worth more than 400 million USD, signing the memorandum of understanding to invest in Hanoi worth more than 4 billion USD.

Accumulated from the beginning of the year to November 25^th 2019, the total registered capital of newly established projects and additional capital increased projects reached 2,142 million USD, of which newly registered 788 projects with total capital of 1,562 million USD; 160 additional projects register to increase investment capital of 580 million USD.

In the first 11 months of 2019, foreign investors contributed capital, buying capital contribution reach 5,330 million USD.

Previously, in October 2019, Hanoi had 91 newly licensed FDI projects with a total registered capital of 468 million USD, of which 72 projects were 100% foreign direct investment, 19 joint venture projects. Of these, foreign investors contribute capital and purchase shares reach 5,330 million USD. The number of projects terminating, suspending and dissolution is 27 projects, of which 24 projects are 100% foreign direct investment and joint ventures are 3 projects.

Major projects from the beginning of the year until now have invested in Hanoi such as the capital contribution and share purchase project of Beerco Limited (Hong Kong) in Vietnam Beverage Co., Ltd., the value of the capital contribution is 3.85 billion USD with the main target of brewing and brewing malt in Hanoi. The project Meiko Electronics Co., Ltd. (Hong Kong) with the goal of designing, assembling and manufacturing electronic components in Hanoi adjusts to increase an additional of 200 million USD investment capital.

Hanoi together with many leading corporations in Japan also exchanged memorandums of understanding (MOUs) on investment cooperation in many projects in the city with a total committed investment capital of up to 3.75 billion USD.

In addition, the newly released data of Foreign Investment Agency (Ministry of Planning and Investment), in the first 11 months, the country has attracted nearly 31.8 billion USD of foreign investment, up 3.1. % compared to the same period last year.

Specifically, in 11 months, capital contribution and share purchase reached US $ 11.24 billion, up 47.1% over the same period in 2018 and accounting for 35.4% of the total registered capital. Meanwhile, both newly and increased capital decreased. Specifically, newly granted capital reached 14.68 billion USD, down 7%; additional capital reached US $ 5.87 billion, down 10.7% over the same period last year.

In addition, the newly released data of Foreign Investment Agency (Ministry of Planning and Investment), in the first 11 months, the country has attracted nearly 31.8 billion USD of foreign investment, increase by 3.1% compared to the same period last year.

Specifically, in 11 months, capital contribution and share purchase reached 11.24 billion USD, increase by 47.1% over the same period in 2018 and accounting for 35.4% of the total registered capital. Meanwhile, both newly and increase capital decreased. Specifically, newly granted capital reached 14.68 billion USD, decrease by 7%; additional capital reached 5.87 billion USD, decrease by 10.7% over the same period last year.

ANT Lawyers is a law firm in Vietnam located in the business centers of Hanoi, Danang, Ho Chi Minh city. We provide convenient access to our clients. Please contact us to book your time in advance to let us provide our best services.

ANT Lawyers, your lawyers in Vietnam.

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What is the importance of trademarks?

A trademark is any sign that individualizes the goods or services of an enterprise and distinguish them from the good or services of the other similar goods or services available in the market or in simple language it is anything that helps in differentiating a product in the ocean of similar or same category of products.

Trademark protection in Vietnam 

Although it is not mandatory and is most often ignored by the entrepreneurs but it remains one of the most important asset of any business.

Some of the important reasons are.

An important tool for effective communication: It is a proven fact that an average consumer identify and remember any brand more easily and effectively through its logo. Your mark can convey intellectual and emotional messages about you, your company, its products or services. A mark need not be a word to be identifiable. It can be a symbol, sign or combination of colours etc. Like “swoosh” design of Nike is recognized worldwide although it doesn’t have any word on it.

Trademark enables your customer to locate you: In this open economy the market place is crowded and consumers have too many options for one single product or service. Trademark proves to be an efficient tool to capture consumer’s attention and make your products and services stand out. Consumer viewing a trademark immediately know who they are dealing with. Often reputation of a particular trademark play a critical role in customer’s purchasing decision.

Trademark facilitates to effectively utilize the internet and various social media platforms: We all very well know how important is to have an online presence in this era. Your brand name is the first thing any customer enters into google or social media site like Facebook, twitter to know about your products and services and basis his decision on the published information.

Trademark is a valuable asset: A trademark fall under class of intangible asset and can appreciate over time. The value of any trademark is directly co-related to the reputation of business. Trademark paves the way for expansion from one industry to another. For example - Titan the homegrown brand for watches has become so popular over time and they used the same trademark to launch their eyewear range in recent past. It helped people to attribute same trust to this newly launched brand which titan watches have and this helped in boosting the company’s ambition for expansion. Trademarks similar to real estate can be bought, sold, licensed or at times used as security interest to secure a loan for your business.

Trademarks are perpetual (i.e they never expire) : Unlike other forms of intellectual property, trademark can exist for entire life of your business provided you renew it after every 10 years.

Source: Quora

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How do I protect intellectual property for my software?

First, you must protect the code. You must have agreements with the developers, confirming that any code they will develop working on your project is your sole property. This is a must. You might want an attorney to draft the agreement. Copyright will protect the code once it is created, you might get an official protection. However, you will have to publish the source code, in this case.

Software Compliance Lawyer in Vietnam

Second, you must protect the trademark (this can wait if you are low on cash). It has to be protected, otherwise someone else can monetize on your success, nonetheless, you can protect it once your software starts selling. However, I do recommend checking if the name is available prior to naming your software, it might be painful to change the name when the software is published.

Third, you can protect some features of your software with patents. Patents are the main reason why Microsoft is flourishing.

Source: Quora

If you are looking for an IP attorney, but are concerned about the typical costs associated with the traditional legal search, you should visit ANT Lawyers where we work to trim those costs. We will match you with an experienced IP attorney in Vietnam for a free, no obligation consultation. Hope this helps.

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