Unique to Vietnam, geographical indications (GI’s) provide a means by which locals and overseas applicants can protect their products. Hoai Nguyen and Stanislas Barro of Rouse Legal take us through some of the benefits and drawbacks of registration and explain why change is on the cards.


Under Vietnamese law, a geographical indication (GI) is defined as a sign indicating that a product has originated from a specific region, locality, territory or country. Although such indications have been capable of protection in Vietnam since 1996, the first name to receive such protection was Phu Quoc, in relation to fish sauce, in 2001; and since then, only 21 GIs have been registered. These include the Hue conical straw hat, Moc Chau tea, Binh Thuan dragonfruit and Buon Ma Thuot coffee.

The limited number of GIs is surprising given the list of 220 Vietnamese ‘specialty products’ produced by the National Office of Intellectual Property (NOIP), and the Vietnamese government’s stated intention to encourage the registration of GIs in relation to these ‘specialty products.’ Specially products are these which have been recognized by the NOIP. With additional assistance from the public and private sectors, however, geographical indications can be widely used to ensure product quality and production standards, and to promote locally manufactured products within Vietnam and abroad.

The law on registration of a GI

Although GIs have been capable of protection in Vietnam since 1996, initially as ‘Appellations of Origin’, it was not until the 2005 Law on Intellectual Property that detailed guidance on protection was introduced. This law provided that a geographical indication is capable of protection provided it indicates an “area, locality, territory or country.” Products must also originate from a particular geographical location and exhibit specific characteristics or qualities pertaining to that geographical location.

While domestic GIs technically belong to the State, individuals or organisations producing relevant products are permitted to apply for registration. To be registrable in Vietnam, foreign GIs must first be protected in their country of origin. As with other forms of intellectual property, applications for GIs are typically examined and approved within 11 to 12 months. Once registered, GIs will not expire: they will terminate only if the GI no longer exhibits the particular qualities or characteristics pertaining to the product originating from a particular geographical location. To date, three foreign GIs have been registered in Vietnam: Peru’s ‘Pisco wine’ and France’s ‘Cognac’ under the old regime, and ‘Scotch Whisky’ under the procedures laid out by the 2005 Law on Intellectual Property.


Benefits of registering a GI
GI registration can provide a wide range of benefits to both rights holders and members of the product supply chain. By certifying a GI, the NOIP acknowledges the quality and reputation of a particular product manufactured in a specific region and provides a means of ensuring that only qualified producers are entitled to use the GI. As a result, consumers can rely on GIs to identify products that derive from a particular location and meet certain production standards, while producers and manufacturers benefit from increased product value.

Geographical indications may also provide greater visibility for regional products than could otherwise be achieved through the promotion of specific brands. The French name ‘champagne,’ has for example been protected in Europe since 1936, and is managed by a consortium of domestic manufacturers. While only a handful of individual brands are recognized internationally, ‘champagne’ is one which is highly sought after: over 40 percent of France’s regional stock is exported overseas. This trend appears to be growing; in 2010, champagne exports increased by 19.5 percent, or 22.5 million bottles.

Beyond its role as an identifier, a GI may also act as a deterrent against counterfeiting in Vietnam. The 2005 Law on Intellectual Property outlines specific offences relating to the counterfeiting or infringement of GIs. It specifically provides that owners/manufacturers entitled to use a GI must meet certain criteria, and that manufacturers may not use GIs to mislead consumers or wrongfully exploit the reputation of protected products.

The reality
Despite these benefits, however, as indicated above, the number of registered GIs in Vietnam remains small. Preparing GI applications can be expensive. In order to file an application, businesses must complete time-consuming research to demonstrate product characteristics and their relationship to geographical locations. Further, many individuals and management bodies, which are entitled to register GIs, are not aware of the benefits of registration or the means of optimising the value of an existing GI. Finally, the fact that it can be a deterrent to counterfeiting may not be realised. Enforcement agencies are relatively inexperienced and uniform enforcement action is difficult.

While the above issues present significant challenges to current or potential registrants there is scope for manufacturers, consumers, and government agencies (who may be misinformed,) to be retrained in order to steer them in the right direction.

At the most fundamental level, businesses and local agencies should be made aware of the rights of registered producers, and the measures that exist for the protection of registered GIs. To generate interest in the registration and use of GIs, State agencies should help businesses assess the various costs and revenue streams relating to GIs. Such assistance could include the identification of costs relating to the application process and ways of using GIs to optimise revenue. Once these steps are taken, it is likely that both domestic and international organizations would regard GIs as a valuable asset, and that the number of registered GIs would increase as a result.


htnguyen@iprights.com
sbarro@iprights.com
www.iprights.com

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