Vietnam has undergone waves of transformation in the field of intellectual property rights in recent years, leading up to the amendments in the country’s intellectual property law that came into force earlier this year. The highlight of this notable transition was witnessed in the trial of Vietnam’s first patent infringement lawsuit, Hoang Thinh vs Viet My Brick Manufacturing, in a remote province of Dak Lak, which lasted for 8 years.
In 2002, the National Office of Intellectual Property granted a Patent Utility Solution (No. 319) to Mr. Hoang Thinh for his brick moulding machine. Based on the patent specification, Thinh appears to have modified conventional brick moulding machines by adding a scraping axis and a rolling blade. In his patent, Thinh had claimed that his brick moulding machine doubled brick production compared to conventional machines.
Then in 2003, Thinh came to know that a local Vietnamese company, Viet My Brick Manufacturing, owned by Mr. Nguyen Dinh My and Mrs. Thai Thi Thu Suong, had been using a brick moulding machine identical to his patented machine.
Thinh sent letter to My and Suong, requesting that they cease all activities which can be considered as an infringement of his patent. Thinh had also called for the Department of Science and Technology and other relevant authorities to intervene and assist him in establishing that the machine used by Viet My Brick Manufacturing is infringing his patent. Based on this, it was concluded that Viet My Brick Manufacturing was infringing the patent granted to Thinh. All the reports were properly documented and brought to the People’s Court of Dak Lak Province at the end of March 2008 for settlement of the lawsuit.
On 18 July 2010, the hearing council of the People’s Court of Dak Lak province opened the first instance trial on the case. According to the Patent Laws in Vietnam, the exploitation of Patent for Invention or Patent for Utility Solution for commercial activities must be permitted by the owner and royalty or licensing fees must be rewarded to him. It was found that Viet My Brick Manufacturing had failed to execute the obligation to obtain permission from Thinh for its use and did not pay any royalty or licensing fees, thus, Thinh has the right to receive compensation from Viet My Brick Manufacturing.
Viet My Brick Manufacturing was ordered to compensate approximately USD 20,000 on the damages caused (which included USD 3,500 in legal fees) to Thinh, and was injuncted from further use of any brick moulding machine which would infringe on Thinh’s patented brick moulding machine.
At the time of writing this article, it remains uncertain whether Viet My Brick Manufacturing will appeal against the Dak Lak People’s Court decision at a higher court.
This country’s first-ever court hearing on patent infringement in trial marks a substantial advancement in patent rights in Vietnam. The court ruling for the Hoang Thinh vs Viet My Brick Manufacturing case also highlights a commendable progress in intellectual property jurisprudence, in which the People’s Court had taken an unprecedented yet effective approach in tackling new technologies, interpreting applicable patent laws and enforcing patent rights. The involvement of relevant authorities (i.e. Department of Science & Technology) in the build-up to the court’s establishment of infringement exemplifies that significant steps had been taken towards stricter law enforcement on intellectual property rights in a country touted to become one of the most rapidly emerging markets in the world.
Our Regional Offices in Singapore, KASS Regional IP Services Pte. Ltd. can assist you with any enquiry that you may have on any South East Asian IP matters, including Vietnam. Please do not hesitate to contact our Singapore Office at ipr@kass.com.sg
[Info source: NOIP / Le Quang Vinh of BROSS & PARTNERS, Vietnam]
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