US embassy cable - 04HANOI1180

UNCLAS SECTION 01 OF 03 HANOI 001180 
 
SIPDIS 
 
STATE FOR EB/IPC:DRBEAN, EAP/BCLTV AND EB/ODC 
STATE ALSO PASS USTR BURCKY/ALVAREZ AND BRYAN 
STATE ALSO PASS USPTO FOR URBAN AND FOWLER 
STATE ALSO PASS LIBRARY OF CONGRESS FOR TEPP 
USDOC FOR LASHLEY AND 4431/MAC/AP/OKSA/HPPHO 
USDOC ALSO FOR ITA/TD/OTEA/JJANICKE AND ITA/TD/SIF/CMUIR 
 
E.O. 12958: N/A 
TAGS: KIPR, ETRD, ECON, VN, IPROP 
SUBJECT: VIETNAM: NEW IPR ASSOCIATIONS 
 
 
1. Summary: GVN efforts to improve enforcement of 
Intellectual Property Rights (IPR) continue to lag. However, 
there are some encouraging signs that domestic industries 
are attaching more importance to the need for IPR 
protection. In recent years, several industries have 
established associations to represent their interests with 
IPR as a priority issue.  This cable describes these new 
associations and the steps they are taking to develop 
themselves as effective advocates for development and 
protection of IPR in Vietnam.  End Summary. 
 
Vietnam Software Association (VINASA) 
------------------------------------- 
 
2. VINASA is a non-profit organization established in 2001. 
The association has 78 domestic and international member 
companies, most of which are leading software firms 
operating throughout Vietnam.  VINASA member companies 
employ about fifty percent of the total number of 
professional programmers and account for approximately sixty 
percent of software production in Vietnam. The Association's 
primary responsibilities are to promote its members' 
businesses and to expand their domestic and international 
markets.  VINASA also plays an important role in encouraging 
the government to introduce new policies aimed at 
stimulating demand for domestic software. In addition, 
VINASA has identified protection of IPR as a priority issue, 
noting its role in the development of the IT industry, 
particularly with respect to attracting foreign direct 
investment. 
 
3. VINASA's chairman, Truong Gia Binh, is a member of the 
National Steering Committee for the implementation of 
Directive No.58 of the Politburo on the acceleration of ICT 
applications and ICT development.  Committee 58 plays a key 
role in designing strategies for ICT development in Vietnam. 
It also supervises the implementation of the GVN's master 
plan for the industry, monitors the modification of ICT 
regulations, and provides comments to the GVN on ICT-related 
policy changes. 
 
4. Despite acknowledging IPR's importance to the software 
industry, VINASA has not initiated a formal dialogue with 
the GVN on this issue.  VINASA's Chairman, Binh, is the CEO 
of FPT Corporation, one of the biggest joint stock 
enterprises in Vietnam's ITC sector with about ten percent 
state-owned equity. This, Binh has told econoffs, limits his 
ability to speak out strongly on IPR-related issues.  As 
most of FPT's customers are government agencies, Binh is 
concerned that if VINASA aggressively engages the GVN on the 
IPR issue, FPT may lose some of its customers. 
 
5. VINASA is working to establish international links with 
other ICT organizations.  It is a member of the World IT and 
Services Alliance (WITSA), Asian-Oceania Computing Industry 
Organization (ASOCIO) and Asia Information Communication 
Technology Organization AICTO).  VINASA is also seeking 
cooperation with and funding from other IT-focused 
associations and companies.  It is working to develop a 
cooperative relationship with the Indian-based National 
Association of Software and Service Companies (NASSCOM). 
Additionally, VINASA has made efforts to network with the 
Business Software Alliance (BSA) to learn from BSA's 
experiences dealing with infringement and enforcement.  Last 
year, VINASA hosted a conference on "IPR roles for the 
software industry" in cooperation with Microsoft, with 
participation of representatives from both the GVN and the 
software industry. 
 
Vietnam center for Protection of Music Copyright (VCPMC) 
--------------------------------------------- ----------- 
 
6. Founded in April 2002, VCPMC is the first non-profit 
organization established entirely to protect the rights of 
Vietnamese composers.  VCPMC has about 500 composer members 
and operates under the management of the Vietnam Musician 
Association (VMA).  (Note:  The VMA falls under the 
Communist Party's Committee on Ideological and Cultural 
Affairs.   Its membership includes most of Vietnam's 
composers.  End note.)   VCPMC is supported in part by the 
Ministry of Culture and Information (MOCI), which has 
provided some funding to the Center and coordinates efforts 
on legal and enforcement issues.  The Center's budget comes 
primarily from commissions on the royalties it collects on 
behalf of its members, assistance from the State budget, 
donations from domestic organizations and individuals, and 
overseas donations. 
 
7. The VCPMC's primary purpose is to help its members 
collect royalties for the use of their works - something 
that has historically been very difficult for composers in 
Vietnam to do because of the lack of a strong legal 
framework as well as a general lack of information and 
understanding about copyright.  Additionally, VCPMC 
cooperates with relevant government agencies to disseminate 
copyright-related laws and regulations.  In its first year 
of operation, the Center collected about 300 million VND 
(approximately US$ 19,000) for its members. However, the 
Center's success has been restricted to Hanoi and Ho Chi 
Minh City.  In other areas, VCPMC has had little success in 
collecting royalties.  In Hanoi, the Department of Culture 
issued specific guidelines on payment of royalties, which 
facilitated the Center's efforts to collect royalties. 
However, other cities and provinces have not been willing to 
follow suit and many users still refuse to pay royalties. 
 
8. The Center has also found it difficult to collect fees 
from small restaurants and bars, karaoke shops, publishing 
houses, and broadcasting agencies. Even state-owned 
broadcasting agencies often do not pay copyright fees. 
VCPMC has worked with the GVN's Broadcasting Committee on 
drafting a proposal for the Ministry of Culture and 
Information (MOCI) to promulgate on regulation of fees 
charged to broadcasting agencies.  The Center has also 
proposed requiring karaoke owners to buy special CDs and 
tapes made by the Vietnam Recording Association whose prices 
would already include the copyright fees. However, The 
Center has been unable to reach agreement with karaoke shops 
and MOCI officials on the issue of royalties. 
 
9. VCPMC is trying to establish international linkages with 
other composer organizations.  The International 
Confederation of Societies of Authors and Composers (CISAC) 
has provided the Center with training and has helped VCPMC 
organize seminars.  VCPMC is in the process of joining 
CISAC, and hopes to be accepted in 2004. (Note:  the delay 
in Vietnam's membership is due to the GVN's poor record on 
copyright protection and the fact that it has not yet joined 
the Berne Convention.  End note.)  VCPMC also cooperates 
with other international organizations, such as KODA (a 
Danish society that administers Danish and international 
copyrights for composers, writers and music publishers) and 
the Japanese Society for Rights of Authors, Composers and 
Publishers (JASRAC) to learn from their management 
experiences. 
 
Recording Industry Association of Vietnam (RIAV) 
--------------------------------------------- --- 
 
10. On June 16, 2003, the Minister of Interior issued a 
Decision on the establishment of the RIAV.  MOCI Vice 
Minister Tran Chien Thang was selected to be RIAV's 
chairperson in August.  RIAV has 45 members, including 
recording studios, lawyers, filmmakers and legislators. 
RIAV's top priority is to fight CD and DVD piracy.  RIAV 
plans to join forces with local authorities to enhance 
copyright protection efforts and provide an intermediary 
between the owners and users of copyright works.  In 
addition, RIAV's objectives include helping its members with 
contract negotiations, helping collect royalties, providing 
advice on legal rights and responsibilities in using 
recording products, and adjudicating disputes. It also plans 
to provide advice and make recommendations to the GVN on the 
formation and revision of copyright policy. 
 
11. RIAV's recording producer members have committed to pay 
musicians' copyright fees of VND 500,000 (about USD 31) for 
each song recorded in a disk/tape.  RIAV has also signed a 
contract with the VCPMC to enforce regulations and legal 
documents on the use and collection of copyright fees from 
musical works.  It also works with the MOCI Performing Arts 
Department to devise payments for musicians and performing 
artists.  Tape and disk recording producers and IPR 
practitioners have expressed hope that RIAV will 
significantly contribute to the protection of copyright 
owners. The RIAV's vice president has said he believes "RIAV 
will have a more powerful voice than individuals and 
companies to ask local authorities to conduct investigations 
into illegal copying." 
 
12. COMMENT:  Developing a domestic constituency interested 
in IPR issues will be critical to raising this issue on the 
GVN's priority list.  Right now, most of the pressure to 
improve IPR enforcement comes from the U.S. and Vietnam's 
other trade and investment partners.  Although these 
associations have a long way to go in organizing themselves, 
establishing a greater level of independence and developing 
effective lobbying tactics, it is a positive sign that some 
IPR-dependent industries have recognized the importance of 
IPR and the need to advocate for stronger GVN policies and 
enforcement in this area. 
BURGHARDT