US embassy cable - 03HANOI343

UNCLAS HANOI 000343 
 
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/FOWLER 
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 
TAGS: KIPR, ETRD, ECON, VM, IPROP 
SUBJECT: VIETNAM: ONE SMALL VICTORY IN IPR WAR 
 
 
1.  Vietnam's ongoing struggle to understand the value of 
protecting intellectual property rights was demonstrated 
clearly in January when an article in "The Guide" magazine, 
a monthly supplement to The Vietnam Economic Times (VET), 
proudly promoted Hanoi as "home to a thriving trade in 
copying CDs and DVDs".  It listed shops where pirated 
materials could be purchased and provided tips on how to 
identify good quality copies.  The article is part of "The 
Guide's" monthly list of prime hotels, restaurants and 
shopping locals in Vietnam's major cities.  In stark 
contrast, the cover story of the companion issue of the VET 
discussed "branding in Vietnam" - highlighting the need for 
Vietnamese companies to register trademarks and build brand 
awareness in order to promote Vietnamese products 
internationally. 
 
2.  In response to U.S. industry complaints about the 
article in "The Guide," Charge sent letters to the editor of 
the VET as well as to the Vice Minister of Culture and 
Information protesting the article and highlighting its 
disregard for Vietnam's IPR commitments under both the U.S. 
- Vietnam Copyright Agreement and the U.S.-Vietnam Bilateral 
Trade Agreement (BTA).  Charge also noted the damage such an 
article can do to Vietnam's international reputation and its 
investment climate.  Just 5 days later, Professor Dao Nguyen 
Cat, Editor-in Chief of the VET, sent a reply to Charge that 
acknowledged the impropriety of the "The Guide" article, 
promised to amend the February issue and encouraged the USG 
to continue its cooperation with Vietnam on copyright 
issues.  As promised, the February edition of "The Guide" 
did not include any information on purchasing pirated CDs or 
DVDs in Vietnam. 
 
3.  COMMENT:  True to form, The Ministry of Culture has not 
yet responded to Charge's request that it shut down the 
CD/DVD shops which are well known for selling pirated goods 
in Hanoi that were specifically cited in the January issue 
of "The Guide".  Over the course of the last year, post has 
sent several letters to the Ministry citing specific cases 
of IPR violations and asking the Ministry to take action. 
The Ministry often takes months to respond and rarely 
directly acknowledges the IPR violation or details what 
steps the Ministry will take to stop the violation and 
prevent future recurrences.  In contrast, however, we were 
encouraged by the rapid response of Mr. Cat, which not only 
acknowledged the problem but also agreed to ensure "The 
Guide" would not continue to promote piracy in subsequent 
editions of the magazine. 
 
4.  As evidenced by the focus of the January issue of the 
VET on branding (as well as a number of other recent 
articles and seminars), there is growing awareness in many 
sectors of Vietnam's economy of the need for IP protection 
for Vietnamese products.  While this understanding is still 
only evident among a small percentage of the population, it 
is growing - among Vietnamese agricultural exporters, 
software developers and artists, for example.  While these 
groups are a long way from forming a critical mass, we 
remain hopeful that as their numbers increase they will 
begin to demand greater protection from the GVN for the IPR 
of domestic industries.  Strong domestic demand for IP 
protection may just be the additional element that will 
compel the GVN to develop effective enforcement capabilities 
in line with the international commitments it has made to 
protect IPR. 
BURGHARDT