The importance of joining the Hague Agreement for Vietnamese businesses, Vietnam joins in the Hague Agreement, Hague Agreement Concerning the International Registration of Industrial Designs, joining the Hague Agreement for Vietnamese businesses, The importance of industrial designs to businesses, Hague Agreement, joining the Hague Agreement, The importance of joining the Hague Agreement

The importance of joining the Hague Agreement for Vietnamese businesses

Recognizing the importance and benefits of participating in the Hague Agreement, the Vietnamese Government had paid close attention to directing the implementation of the Agreement in Vietnam. Accordingly, the NOIP was assigned to assume the prime responsibility and coordinate with other units to strictly, fully, and effectively implement the declarations made by Vietnam when joining the Agreement. 

Furthermore, the NOIP continued to review the legal provisions related to industrial designs to propose amendments and supplements to be consistent with the Hague Agreement to internalize regulations, urgently prepare resources in terms of human, material, information technology infrastructure, etc. in service of receiving and processing international industrial design applications.

Additionally, the NOIP had actively propagated and disseminated information about the Agreement, raising awareness of the public and businesses about the importance of the Hague Agreement in various forms and at the same time, improving knowledge about industrial design registration under The Hague Agreement for subjects working in the field of intellectual property, especially industrial property representatives through seminars, training courses, etc. to help them have enough expertise to advise and support applicants, create favorable conditions for individuals and businesses in filing international registration applications for industrial designs.

According to WIPO statistics, the number of applications registered through the Hague system in 2019 was 5894, an increase of 8.1% compared to 2018, an increase of 40.8% compared to 2015. An applicant can protect many different industrial designs (up to 100 designs if the same international classification group Locarno) in many countries in one application and pay a single fee. Application forms are also varied, including a paper application or an online application with the International Bureau or through the Member State’s intellectual property office (if that authority allows).

Vietnam joins in the Hague Agreement

Within the framework of Vietnam’s main commitments on Intellectual Property when signing the EU-Vietnam Free Trade Agreement (EVFTA), Vietnam committed to join The Hague Agreement on the International Registration of Industrial Designs within 2 years from the date of entry into force of the EVFTA Agreement and would protect industrial designs for at least 15 years.

To fulfill this commitment, at 8:00 a.m. (Swiss time) on September 30, 2019 (October 1, Vietnam time), at the headquarters of the World Intellectual Property Organization (WIPO), on behalf of the Government In Vietnam, Minister of Science and Technology Chu Ngoc Anh presented the Instrument of Accession to the Hague Agreement on the International Registration of Industrial Designs (Geneva Act 1999) to WIPO Director General Francis Gurry. The Agreement officially took effect for Vietnam after 03 months from the date of submission of the Instrument.

Based on assessing the progress and improvement of the 1999 Act compared with other acts, Vietnam decided to ratify the Hague Agreement under the 1999 Act. The 1999 Act had entered into force for Vietnam as of December 30, 2019. With its accession to the 1999 Geneva Act, Vietnam would only have rights and obligations under the Agreement under this Act and shall not be affected by the remaining Acts. In addition, Vietnam has the right to participate in the discussion and vote on issues of the Hague Union that are common to the Agreement’s Act.

The importance of industrial designs to businesses

Industrial design is the external appearance of a product expressed by lines, shapes, colors, or a combination of those elements, used as a model for manufacturing industrial or handicraft products.

The importance of industrial designs to businesses are:

  • Helping businesses to ensure their exclusivity to protected products.
  • Protecting the interests of businesses when their protected products are counterfeited, copied, etc.
  • In the face of the reality that counterfeit goods and counterfeit goods are widely produced, businesses with protection for industrial design will have the basis for handling violations in cases of counterfeiting or copying products, helping to strengthen customers’ confidence in the business.
  • Industrial design protection can also be an additional source of income for enterprises through the transfer of the right to use the design to others.

Hague Agreement Concerning the International Registration of Industrial Designs

The Hague Agreement allows applicants to register an industrial design by filing a single application with the International Bureau of WIPO. With a single application, filed with one office, with one type of currency, with a single payment of a fee, individuals and organizations who are nationals, residents, permanent residents or active members of member countries or organizations under the Hague Agreement may protect industrial designs in participating countries. 

The Hague Agreement also simplifies the management of industrial design registration, since it is possible to record subsequent changes and to renew the international registration through a single procedural step.

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The importance of joining the Hague Agreement for Vietnamese businesses

International design applications may be filed with the International Bureau of WIPO, either directly or through the industrial property office of the Contracting Party of origin if the law of that Contracting Party permits or requires. In practice, however, virtually all international applications are filed directly with the International Bureau, and the majority are filed using the electronic filing interface on WIPO’s website.

Applicants may choose to apply in English, French, or Spanish. International applications must contain one or several reproductions of the industrial design(s) and must designate at least one Contracting Party.

International registrations are published in the International Designs Bulletin, issued weekly online. Depending on the Contracting Parties designated, applicants may request that the publication be delayed by a period not exceeding 30 months from the date of the international registration or, if priority is claimed, from the priority date.

The importance of joining the Hague Agreement for Vietnamese businesses

Previously, Vietnamese enterprises and individuals who wanted to protect their industrial designs in foreign countries had only one method which was to apply for registration directly at the Intellectual Property Offices of each separate country, which means that different applications must be made in the languages ​​and requirements of the host countries. That means applicants will have to spend a lot of money, especially the cost of hiring a lawyer in each country. Similarly, foreign businesses and individuals also face difficulties when they want to protect their industrial designs in Vietnam because the only way is to register directly at the National Office of Intellectual Property of Vietnam and must pass industrial property representative registered in Vietnam.

With the participation in the Hague Agreement, from January 1, 2020, authors and organizations from Vietnam can register for the protection of industrial designs designating countries that are members of the 1999 Act through the Hague Agreement.

The benefits of the Hague system were the main driving force behind Vietnam’s joining in the Hague Agreement on international registration of industrial designs (Geneva Act 1999) in September 2019. In addition to the harmonious compatibility with the law of Vietnam, another important reason for Vietnam’s participation is that major economic partners of Vietnam such as Japan, the United States, South Korea, etc. all participate in the agreement under the Geneva Act 1999.

Joining the Hague agreement is also inevitable in the current globalization trend. The free trade agreements that Vietnam signed recently, such as the EVFTA and CPTPP, all require members to consider joining the Hague Agreement. For example, the EVFTA Agreement stipulates that members must join the Hague Agreement within two years from the date of entry into force of the Agreement. Joining the Hague Agreement not only ensures Vietnam’s commitment to intellectual property in trade agreements, but also contributes to attracting investment from foreign businesses, and at the same time encouraging export activities of domestic enterprises.

However, some people are skeptical about whether the Hague Agreement brings many benefits to a country that mainly exports raw materials and most domestic enterprises are not competitive like Vietnam. Similar concerns arose before the European Union joined the Agreement in 2007 (Geneva Act 1999). 

According to the European Commission’s assessment report on Europe’s participation in the Hague Agreement in 2005, many people stress that less competitive companies will be affected when foreign companies enter the European market through the Hague System. 

However, this statement is not convincing. Despite the absence of the Hague Agreement, inferior businesses competition still faces competition from foreign enterprises. Therefore, in the short term, small businesses may not benefit much from the Hague Agreement, but in the long run, the Agreement will create incentives for businesses to create more competitive products, at the same time opening up opportunities to access new markets for businesses.

ASL LAW is the top-tier Vietnam law firm and Vietnam IP Firm for doing business in Vietnam. If you need any advice, please contact us for further information or collaboration.

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