US embassy cable - 02HANOI1523

UNCLAS SECTION 01 OF 03 HANOI 001523 
 
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 
STATE ALSO PASS LIBRARY OF CONGRESS FOR TEPP 
USDA FOR FAS/FAA/AO HUETE 
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 
                       UNCLASSIFIED 
 
PAGE 02        HANOI  01523  01 OF 03  130517Z 
TAGS: KIPR, ETRD, ECON, VN, IPROP 
SUBJECT: VIETNAM: INTELLECTUAL PROPERTY RIGHTS ON THE AGENDA 
FOR PRIVATE SECTOR AND GOVERNMENT AGENCIES 
 
 
1.  SUMMARY: INTELLECTUAL PROPERTY RIGHTS CONTINUES A FRONT- 
BURNER ISSUE AMONG THE PRIVATE SECTOR AND SOME GOVERNMENT 
AGENCIES IN VIETNAM.  THIS CABLE SUMMARIZES TWO RECENT IPR 
SEMINARS IN HANOI SPONSORED BY FRANCE AND SWITZERLAND AND 
WHICH INCLUDED PARTICIPATION BY THE EMBASSY ECONOMIC 
SECTION, THE USAID-FUNDED STAR PROJECT, AND A NUMBER OF U.S. 
FIRMS. IT WAS CLEAR FROM BOTH SEMINARS THAT THERE IS A GREAT 
DEAL OF INTEREST FROM BOTH FOREIGN AND DOMESTIC FIRMS IN 
VIETNAM ON WHO THE ENFORCEMENT PLAYERS ARE AND HOW THE 
PROCESS SHOULD WORK.  IT WAS ALSO CLEAR THAT, SPURRED BY 
THEIR OBLIGATIONS UNDER THE U.S.-VIETNAM BILATERAL TRADE 
AGREEMENT, VIETNAMESE AGENCIES INVOLVED IN IPR ENFORCEMENT 
ARE BEGINNING TO EXAMINE THEIR ROLES AND IDENTIFY AREAS 
WHERE THEY LACK CAPACITY AND TRAINING. WHILE THE LARGER 
LEGAL CONTEXT FOR IPR PROTECTION APPEARS TO BE ON TRACK, 
THERE REMAINS A GENERAL LACK OF UNDERSTANDING OF IPR 
PROTECTION AMONG AUTHORITIES, FIRMS AND THE PUBLIC AND A 
LACK OF CLEAR OPERATING GUIDELINES FOR AGENCIES CHARGED WITH 
IPR ENFORCEMENT IN THE FIELD.  END SUMMARY. 
 
FRANCE AND THE EU FOCUS ON ASIA 
 
 2.  IN MAY, THE FRENCH NATIONAL INSTITUTE OF INDUSTRIAL 
PROPERTY, IN CONJUNCTION WITH THE EUROPEAN COMMISSION, THE 
VIETNAMESE, THAI AND MALAYSIAN GOVERNMENTS AND A NUMBER OF 
PRIVATE SECTOR FIRMS (INCLUDING MICROSOFT AT OUR 
SUGGESTION), SPONSORED A REGIONAL CONFERENCE IN HANOI ON THE 
                       UNCLASSIFIED 
 
PAGE 03        HANOI  01523  01 OF 03  130517Z 
FUTURE FOR INTELLECTUAL PROPERTY IN ASIA.  WHILE THE 
CONFERENCE WAS NOT VIETNAM SPECIFIC, THE EMBASSY WAS INVITED 
TO BRIEF THE CONFERENCE PARTICIPANTS ON THE IPR PROVISIONS 
IN THE U.S. VIETNAM BILATERAL TRADE AGREEMENT (BTA) AND ON 
OUR WORK WITH VIETNAM ON ITS IMPLEMENTATION.  SINCE THE 
CONFERENCE TOOK PLACE SHORTLY AFTER THE ANNOUNCEMENT OF 
USTR'S SPECIAL 301 REPORT, OUR TALK INCLUDED A SHORT 
REFERENCE TO THOSE CONCLUSIONS.  WE STRESSED THAT THE U.S. 
APPROACH WAS TO ADDRESS IPR ISSUES FIRST IN THE MULTILATERAL 
CONTEXT, THEN REGIONAL OR BILATERAL, AND ONLY WHEN THOSE 
APPROACHES WERE NOT SUFFICIENTLY EFFECTIVE, DID WE USE ALL 
OTHER TOOLS AVAILABLE TO ENSURE ADEQUATE PROTECTION OF IPR. 
MANY OF THE EUROPEAN PARTICIPANTS (AND SOME OF THE REGIONAL) 
PROFESSED A PREFERENCE FOR "VOLUNTARY" MEASURES TO INCREASE 
IPR PROTECTION IN ASIA, BUT IT WAS CLEAR THAT THE U.S. WAS 
THE ONLY COUNTRY ABLE TO SHOW SPECIFIC PROGRESS WITH VIETNAM 
ON IPR ISSUES, THANKS TO THE BTA.  IN ADDITION TO OUR 
EMBASSY SPEAKER, THE USAID-FUNDED STAR PROJECT ALSO 
PARTICIPATED IN THE SEMINAR'S WORKSHOP ON DEVELOPMENT OF 
TECHNICAL COOPERATION. 
 
SWITZERLAND FOCUSES ON IPR ENFORCMENT 
 
3.  ALSO IN MAY, THE SWISS PUT ON ONE OF THE MOST USEFUL IPR 
SEMINARS TO DATE IN HANOI, ENTITLED "SEMINAR ON INDUSTRIAL 
PROPERTY AND THE INTEGRATION OF VIETNAM INTO THE 
MULTILATERAL TRADE SYSTEM - ENFORCEMENT" AND ORGANIZED BY 
THE "SPECIAL PROGRAMME OF COOPERATION BETWEEN VIETNAM AND 
SWITZERLAND IN THE FIELD OF INTELLECTUAL PROPERTY.  SPEAKERS 
INCLUDED SOME OF THE VIETNAMESE GOVERNMENT OFFICIALS IN 
CHARGE OF IPR PROTECTION AND ENFORCEMENT EFFORTS.  SOME 
                       UNCLASSIFIED 
 
PAGE 04        HANOI  01523  01 OF 03  130517Z 
HIGHLIGHTS OF THE CONFERENCE FOLLOW BELOW. 
 
WTO - TRIPS AND DOHA 
 
4.  THE VIETNAMESE FIRMS AND GOVERNMENT OFFICIALS PRESENT 
WERE PARTICULARLY INTERESTED IN THE SESSION ON "THE WTO 
AFTER THE DOHA MINISTERIAL CONFERENCE - IP: PATENT, 
GEOGRAPHICAL INDICATIONS AND TRADITIONAL KNOWLEDGE", 
PRESENTED BY DR. FELIX ADDOR, CHIEF LEGAL OFFICER AND DEPUTY 
DIRECTOR GENERAL, SWISS FEDERAL INSTITUTE OF IP. MUCH OF THE 
Q&A SESSION WAS RELATED TO TRADITIONAL MEDICINES. OTHER 
SESSIONS INCLUDED TRIPS OBLIGATIONS AND ENFORCEMENT ISSUES, 
INCLUDING DISPUTE SETTLEMENT. 
 
5.  DR. PHAM DINH CHUONG, DIRECTOR, NATIONAL OFFICE OF 
INDUSTRIAL PROPERTY RIGHTS, ADDRESSED THE SESSION ON 
"ACCESSION NEGOTIATIONS OF VIETNAM TO THE WTO: STATE OF PLAY 
IN THE FIELD OF IP."  HE REVIEWED THE LATEST DEVELOPMENTS IN 
THE NEGOTIATIONS WITHIN THE WTO WORKING GROUP ON IP.  HE 
TOLD THE AUDIENCE THAT VIETNAM HAD BUILT AN AMBITIOUS ACTION 
PLAN ON IPR, NAMELY TRIPS.  VIETNAM HAD EXPECTED TO BE FULLY 
IN COMPLIANCE WITH TRIPS ON JANUARY 01, 2002. UP TO NOW, THE 
PLAN HAS NOT BEEN FINISHED. HOWEVER, ACCORDING TO DR. 
CHUONG, VIETNAM HAS REACHED SOME MOST IMPORTANT TARGETS, FOR 
EXAMPLE, ON THE LEGAL IMPLEMENTATION OF TRIPS, VIETNAM'S 
LEGAL SYSTEM IS ONLY SHORT OF REGULATIONS ON PROTECTION OF 
 
                       UNCLASSIFIED 
 
                           UNCLASSIFIED     PTQ6987 
 
PAGE 01        HANOI  01523  02 OF 03  130518Z 
ACTION EB-00 
 
INFO  LOG-00   AGRE-00  AID-00   AMAD-00  CEA-01   CIAE-00  CTME-00 
      DINT-00  DODE-00  ITCE-00  DOTE-00  SRPP-00  EAP-00   EXME-00 
      OIGO-00  E-00     FAAE-00  UTED-00  VC-00    FRB-00   H-01 
      TEDE-00  INR-00   ITC-01   LAB-01   LOC-01   L-00     VCE-00 
      AC-01    NSAE-00  NSCE-00  OES-01   OMB-01   OPIC-01  PA-00 
      PRS-00   ACE-00   SP-00    SSO-00   SS-00    STR-00   TEST-00 
      TRSE-00  USIE-00  EPAE-00  DRL-02   G-00     NFAT-00  SAS-00 
        /011W 
                  ------------------BC54B9  130518Z /38 
P 130516Z JUN 02 
FM AMEMBASSY HANOI 
TO SECSTATE WASHDC PRIORITY 6753 
INFO AMCONSUL HO CHI MINH CITY 
USDOC WASHDC 
USDA WASHDC 
 
UNCLAS SECTION 02 OF 03 HANOI 001523 
 
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 
STATE ALSO PASS LIBRARY OF CONGRESS FOR TEPP 
USDA FOR FAS/FAA/AO HUETE 
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 
                       UNCLASSIFIED 
 
PAGE 02        HANOI  01523  02 OF 03  130518Z 
 
LAYOUT DESIGN OF INTEGRATED CIRCUITS. 
 
6.  ACCORDING TO DR. CHUONG, IN THE CONTEXT OF ITS WTO 
ACCESSION TALKS, VIETNAM HAS ALREADY FINISHED THE 
"TRANSPARENCY" PHASE. VIETNAM IS NOW MOVING TO "SUBSTANTIAL 
NEGOTIATION" PHASE.  HE NOTED THAT THE  LATEST NEGOTIATION 
WAS HELD IN GENEVA ON APRIL 12-18, 2002 AND THAT DURING 
THOSE TALKS THE U.S, EU, AUSTRALIA AND SWITZERLAND HAD RATED 
HIGHLY VIETNAM'S EFFORT ON CREATING AN ADEQUATE LEGAL 
STRUCTURE FOR IPR PROTECTION. HOWEVER, HE NOTED THAT VIETNAM 
STILL HAS TO CONFRONT BIG CHALLENGES IN EFFECTIVE 
ENFORCEMENT. AS REGARDS ENFORCEMENT, VIETNAM HAS PUT SPECIAL 
EMPHASIS ON ADMINISTRATION REMEDIES TO PREVENT AND DEAL WITH 
IPR VIOLATIONS. BUT, HE ADMITTED THAT IPR VIOLATIONS ARE A 
REAL "HEADACHE ISSUE" IN VIETNAM WITH INCREASINGLY MORE 
COMPLICATED INFRINGEMENT SITUATIONS. COUNTERFEIT AND PIRATED 
PRODUCTS ARE SOLD PUBLICLY THROUGHOUT THE COUNTRY. 
REGARDING COMPLETION OF AN EFFECTIVE IPR REGIME IN VIETNAM 
THAT IS IN COMPLIANCE WITH TRIPS, DR. CHUONG NOTED EFFECTIVE 
ENFORCEMENT IS THE GREATEST CHALLENGE AND NUMBER ONE TARGET 
OF VIETNAM. 
 
TRADEMARK ENFORCEMENT DRAWS INTEREST 
 
7.  ANOTHER AUDIENCE GRABBING SESSION WAS "TRADEMARK 
ENFORCEMENT: AN INSIDER'S VIEW", PRESENTED BY BHARAT DUBE, 
IP COUNSEL, RICHEMONT INTERNATIONAL.  DUBE USED CASE STUDIES 
                       UNCLASSIFIED 
 
PAGE 03        HANOI  01523  02 OF 03  130518Z 
(INCLUDING CARTIER) TO ILLUSTRATE THE TYPES OF 
COUNTERFEITING ACTIVITIES THAT TAKE PLACE AND METHODS OF 
INVESTIGATION, INCLUDING HOW TO DEVELOP EVIDENCE FOR LOCAL 
LAW ENFORCEMENT AGENCIES AND HOW TO GET THEM TO ACT ON THAT 
EVIDENCE. THE PARTICIPANTS WERE CLEARLY INTERESTED IN THIS 
ISSUE AND IN UNDERSTANDING THE ROLES OF EACH OF DIFFERENT 
ELEMENTS INVOLVING IN IPR ENFORCEMENT. 
 
CUSTOMS LAYS OUT PROBLEMS AND FUTURE ACTIONS 
 
8. VU NGOC ANH, DIRECTOR, INSTITUTE FOR CUSTOM RESEARCH, 
GENERAL DEPARTMENT OF CUSTOM MADE A SPEECH ON "VIETNAMESE 
CUSTOMS' EXPERIENCE IN IP ENFORCEMENT". HE SAID VIETNAM'S 
CUSTOMS DEPARTMENT PLAYS AN IMPORTANT ROLE IN IPR PROTECTION 
RELATED TO IMPORTS AND EXPORTS. HOWEVER, CUSTOMS' 
ENFORCEMENT ACTIONS ARE STILL LIMITED. THE MAIN REASONS WERE 
THE LACK OF AWARENESS OF IPR PROTECTION BY CUSTOMS 
OFFICIALS, THE SHORTAGE OF SPECIALIZED CUSTOMS IPR SECTIONS, 
AND CONSEQUENTLY, INCONSISTENT GUIDANCE WITHIN CUSTOMS ON 
IPR ENFORCEMENT. 
 
9.  ANH SAID THE CUSTOMS DEPARTMENT NEEDS TO DO THE 
FOLLOWING TASKS IN THE FUTURE. FIRST, BUILD SPECIALIZED IPR 
SECTIONS IN THE GENERAL DEPARTMENT OF CUSTOMS AS WELL AS IN 
LOCAL CUSTOMS OFFICES WITH A DATABASE SYSTEM FOR KEEPING 
TRACK OF GOODS AND TO COMPARE THE IMPORT OR EXPORT OF GOODS 
THAT HAVE REGISTERED TRADEMARKS OR COPYRIGHTS. SECOND, TRAIN 
THE PROFESSIONAL CUSTOMS STAFF TO INCREASE AWARENESS OF IPR 
PROTECTION. THIRD, SET UP A MECHANISM FOR IPR HOLDERS TO 
REQUEST IPR PROTECTION ON A LONG-TERM AND CASE-BY-CASE 
BASIS. FINALLY, PUSH FOR INCREASED INTERNATIONAL COOPERATION 
                       UNCLASSIFIED 
 
PAGE 04        HANOI  01523  02 OF 03  130518Z 
WITH OTHER COUNTRIES TO GET MORE EXPERIENCE IN IPR 
ENFORCEMENT. 
 
MARKET MANAGEMENT BUREAU EXPLAINS ITS ENFORCEMENT ROLE 
 
10. LE THE BAO, DIRECTOR, MARKET MANAGEMENT BUREAU ("MMB") 
PRESENTED "MARKET MANAGEMENT ENFORCERS WITH COUNTERFEIT AND 
INDUSTRIAL PROPERTY INFRINGEMENT FIGHTING". (NOTE:  THE MMB 
IS THE STATE AGENCY RESPONSIBLE FOR DOMESTIC COMMERCE. IN 
TERMS OF IPR PROTECTION, MMB IS RESPONSIBLE FOR INSPECTING 
FOR AND DEALING WITH COUNTERFEIT TRADEMARKS AND INDUSTRIAL 
PROPERTY INFRINGEMENT.  MMB HAS COOPERATED WITH A NUMBER OF 
COUNTRIES ON TRADEMARK ENFORCEMENT, IN PARTICULAR WITH 
FRANCE ON A PROJECT FOR THE PROTECTION FOR APPELLATION OF 
ORIGIN OF GOODS.)  BAO OUTLINED THE MEASURES TAKEN BY MMB TO 
PROTECT IPR, SUCH AS STRENGTHENING PUBLIC AWARENESS, 
ENHANCING COOPERATION BETWEEN IPR ENFORCEMENT AGENCIES AND 
IPR ADMINISTRATIVE AGENCIES, AND ENCOURAGING ENTERPRISES TO 
ACTIVELY PROTECT THEIR PRODUCTS. BAO ALSO NOTED THAT THE MMB 
FACES A NUMBER OF DIFFICULTIES IN TAKING ACTION AGAINST 
COUNTERFEIT AND IPR INFRINGEMENT. IN PARTICULAR, HE SAID 
THAT THE CURRENT LEGAL GUIDELINES THAT APPLIED TO THE MMB'S 
WORK WERE AT TIMES UNCLEAR AND MADE A SOLID LEGAL 
DETERMINATION OF INFRINGEMENT MORE COMPLICATED AND 
"CONTROVERSIAL."  FOR EXAMPLE, BAO CLAIMED THAT A NUMBER OF 
LEGAL GUIDELINES MENTION THE CONCEPT OF "USE OF A SIGN THAT 
 
                       UNCLASSIFIED 
 
                           UNCLASSIFIED     PTQ6988 
 
PAGE 01        HANOI  01523  03 OF 03  130518Z 
ACTION EB-00 
 
INFO  LOG-00   AGRE-00  AID-00   AMAD-00  CEA-01   CIAE-00  CTME-00 
      DINT-00  DODE-00  ITCE-00  DOTE-00  SRPP-00  EAP-00   EXME-00 
      OIGO-00  E-00     FAAE-00  UTED-00  VC-00    FRB-00   H-01 
      TEDE-00  INR-00   ITC-01   LAB-01   LOC-01   L-00     VCE-00 
      AC-01    NSAE-00  NSCE-00  OES-01   OMB-01   OPIC-01  PA-00 
      PRS-00   ACE-00   SP-00    SSO-00   SS-00    STR-00   TEST-00 
      TRSE-00  USIE-00  EPAE-00  DRL-02   G-00     NFAT-00  SAS-00 
        /011W 
                  ------------------BC54BD  130518Z /38 
P 130516Z JUN 02 
FM AMEMBASSY HANOI 
TO SECSTATE WASHDC PRIORITY 6754 
INFO AMCONSUL HO CHI MINH CITY 
USDOC WASHDC 
USDA WASHDC 
 
UNCLAS SECTION 03 OF 03 HANOI 001523 
 
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 
STATE ALSO PASS LIBRARY OF CONGRESS FOR TEPP 
USDA FOR FAS/FAA/AO HUETE 
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 
                       UNCLASSIFIED 
 
PAGE 02        HANOI  01523  03 OF 03  130518Z 
 
IS IDENTICAL OR SIMILAR TO THE PROTECTED TRADEMARK" OR "USE 
OF A SIGN THAT IS EASY TO CAUSE CONFUSION."    BAO CONCLUDED 
THAT THE CONCEPT OF IPR IN VIETNAM WAS STILL A NEW AND 
"SENSITIVE" MATTER. AWARENESS OF IPR PROTECTION AMONG THOSE 
WHO ARE SUPPOSED TO ENFORCE THE LAW, THE PRODUCERS, THE 
TRADERS AND THE PUBLIC IS VERY LIMITED. 
 
COURTS NEED SEPARATE IPR CODE AND BETTER LITIGATION LAW 
 
11. NGUYEN VAN LUAT, VICE DIRECTOR, INSTITUTE FOR JUDICIAL 
SCIENCE (SUPREME PEOPLE'S COURT) ADDRESSED THE ISSUE OF "THE 
ROLE OF VIETNAM'S COURTS IN PROTECTING INDUSTRIAL PROPERTY 
RIGHTS UNDER CIVIL AND CRIMINAL LITIGATION PROCEDURES." THE 
PRESENTATION OUTLINED THE COURT'S ROLE AND VIETNAM'S CIVIL 
AND CRIMINAL LITIGATION PROCEDURES FOR SETTLING IPR 
DISPUTES. HE NOTED THAT VIETNAM NEEDS TO COMPLETE LEGAL 
REGULATIONS ON IPR, IN PARTICULAR, TO PROMULGATE A SEPARATE 
IPR CODE AND TO PERFECT LITIGATION LAW. 
 
12. THE FINAL PRESENTATION "COMMENTS ON IPR ENFORCEMENT" 
MADE BY JOSEPH T. SIMONE, MR. MAGNUS HIRSHCH, AND MR. PAUL 
NORRIS, LAWYERS OF BAKER & MCKENZIE IN HONG KONG/ BEIJING/ 
FRANKFURT/ HO CHI MINH. THIS SESSION DREW A GREAT DEAL OF 
ATTENTION FROM THE AUDIENCE.  THE SPEAKERS FOCUSED ON ISSUES 
RELATED TO IPR, IPR INFRINGEMENT, AND IPR ENFORCEMENT 
THROUGH JUDICIAL, ADMINISTRATIVE AND PRIVATE REMEDIES USING 
EXAMPLES FROM HONG KONG, CHINA AND GERMANY'S LEGAL SYSTEM ON 
                       UNCLASSIFIED 
 
PAGE 03        HANOI  01523  03 OF 03  130518Z 
IPR ENFORCEMENT AND LEGAL REMEDIES DEALING WITH IPR 
VIOLATIONS. 
PORTER 
 
                       UNCLASSIFIED