Businesses Must Self-Develop Trademark

1:57:45 PM | 8/31/2011

A US-based company registered Vietnam’s Phu Quoc fish sauce trademark for protection in the United States, the European Union and Australia. As a result, the well-known fish sauce name cannot be used by the Vietnamese owner in these markets. This reality stresses the urgency in building a collective trademark for key exports. Vietnam Business Forum interviewed Mr Tran Le Hong, Director of Information Centre under the National Office of Intellectual Property of Vietnam (NOIP), on this issue. Huong Ly reports.
Could you please tell why there is a need for building collective trademarks for key export sectors in Vietnam?
Building collective trademarks is very popular in the world. For example, Columbia developed a collective trademark for coffee called “Cafe de Colombia” in the 1920s and it became one of five top coffee trademarks in US consumer surveys. With its strong trademark, prices of Columbian coffee are always on the top list. I think we need to urgently establish collective trademarks to register in importing markets. The lateness will result to a loss of opportunity to register trade names like the case of Phu Quoc fish sauce. Branding not only means popularising Vietnamese products but also opens up export opportunities and protects brand image of Vietnamese products.
 
What is your opinion about collective trademark development in Vietnam today?
In Vietnam, industry branding has been highly rated. Some collective trademarks have been protected, including Ben Tre green-skinned grapefruit, Phu Quoc pepper, Thanh Ha lychee, Binh Thuan dragon fruit, and Tien Giang agricultural specialties.
 
However, building collective brands are not being carried evenly in all localities. Brands and geographical indications are very much localised, raising difficulties in collective trademark development, especially when there are local interest conflicts. Most brands and geographical indications potential for collective trademark development lack care for protection registration in foreign countries. Besides, Vietnam is weak at developing collective trademarks and carrying out marketing strategies.
 
Small and medium enterprises (SMEs) need supports of industry associations and State management agencies like counterfeit prevention agency to create general power and make better investment for this effect. For example, Japan has an agency responsible for preventing counterfeiting electronics products like printers and cameras produced and sold in foreign markets. If all businesses and associations jump on the bandwagon, plus the instruction of State administrative agencies, Vietnam has huge opportunity for collective trademark development.
 
What industries in Vietnam have advantages for collective trademark development?
They are highly valued export sectors as they have enough resources for quality assurance, strategy development, trademark development and production development. Typical examples are rice, coffee, tea and cashew nuts. If we are successful with these sectors, we will have experience with other sectors.
 
[Vietnam] should not develop so many collective trademarks at the same time because this will weaken our resources for trademark development.
 
Businesses think that State agencies must stand out for industry brand development while the latter consider this a job of the former?
To my knowledge, it is extremely wrong to think that State agencies are responsible for trademark development. Thus, industry branding is the responsibility of businesses. The National Trademark Programme can only support businesses, associations or some business representative units to develop brands. Companies themselves have to take care of product quality and branding strategy, not State agencies. Businesses and associations must change their perception from the start to build up brands rather than rely on State management agencies.
 
Businesses usually complain about hardships in branding. Could you please tell solutions that help businesses to be more active in this field?
Not only businesses but State agencies also encounter difficulties in developing brands, especially in foreign countries where they have limited personnel and budget. If businesses pass the buck to State agencies, results will surely be ineffective. It is important that businesses must make effort and demonstrate creativity, enhance the connectivity among businesses, between businesses and associations, and State agencies to be more flexible in brand development. The linkage is very important because a business may face budget strains but it is not a major problem for a group of businesses.
 
Vietnamese enterprises have faced up with many legal disputes in foreign countries but most cases placed them at a disadvantage. What do you think about this?
We must look at this from the start because when a business or an industry association wants to develop new markets, one of important conditions is to ensure brand names of products in those markets. In foreign countries, when a product is made, the first work to be done with it is to register its brand name. This is also the case in Vietnam. Enterprises should weigh up this matter because brand registration fees are much lower than those for protecting it in brand disputes.
 
If they get involved in lawsuits in foreign countries, the costs of hiring lawyers and settling disputes must be very big, even beyond financial capacity of Vietnamese companies while they may still lose.