Socialist Republic of Vietnam

Coupled with preventative measures such as preferential pricing, new enforcement policies will be essential in regulating Intellectual Property Protection (IPP) in Vietnam.
The recently amended Law on Intellectual Property taking effect July 1 brings regulations and enforcement procedures on copyrights and intellectual property rights (IPP) in line with international standards.

As the country stands on the threshold of WTO entrance, Vietnamese management offices have enhanced efforts to curb the software copyright violation problem.

According to the amended law, fines can range from VND20-25 million ($1,250-1,562), and all the software they use will be destroyed.

First-time violators will be added to a probationary list and if they violate again, the authorised offices will take more serious measures.

Inspectors from the Ministry of Culture and Information have said that four companies in Ho Chi Minh City and Hanoi have been caught red-handed using illegally copied software over the past two months.

The number of violations in 2005 was just as large as those of 2004, with 100 cases out of 3,000 being pushed through court, while only 10 cases were handled through settlements, according to the National Intellectual Property Office.

The number of violators will be much higher in the near future as authorized offices increase inspections of software copyrights and impose heavier punishments on companies that use illegal software, the office predicted.

The IT development strategy for 2006-2010 targets an average growth rate of 35-40 percent annually, revenue of $1 billion and a reduction of 70 percent in copyright infringement by 2010.

To realize the set goals, Vietnam must pursue better market regulations.

Price problem

As many Vietnamese companies are financially incapable of protecting intellectual property rights, a preferential price policy for developing countries might be the answer to Vietnam’s copyright violation hitch.

A company that has around 100 computers might have to pay around VND1 billion (US$62,500) to purchase Microsoft Office software, a fee that only big firms can afford.

Many experts have said that in order to encourage the use of proprietary software, foreign software producers should introduce reasonable price policies suitable for developing countries like Vietnam.

But it will be difficult to thoroughly realize copyright protection in Vietnam because Vietnamese customers simply don’t have the money to buy a copyrighted version of Microsoft’s Windows XP Pro for US$140.

A representative of the HCMC-based software processing company said that software copyright protection will be a decisive factor in the long-term development of the IT industry.

Along with a preferential price policy, the IT sector has also suggested the development of open-source software programs widely usable among many people.

Source: Thanh Nien News