Firms urged to sign up for brand protection

The ‘Snowbell leaf’ branded vegetarian noodle products of Binh Tay Foodstuff Joint Stock Company have been shipped to countries around the world such as the US, Canada, Australia, France, Germany and Hong Kong.

But the company recently discovered the brand was being illegally registered and used by a Chinese firm anchored in the US.

“Foreign customers may lose confidence in our products because of the Chinese firm’s actions which could stain our image and put a dent on our profits. Therefore, Binh Tay has engaged in a lawsuit against the Chinese firm though we know this will be very costly,” said the firm’s chairwoman Le Thi Giau.

Earlier, Ho Chi Minh City-based Kem Nghia JSC –  a prestigious hand nail nippers and associated products maker – saw its Nghia nippers brand stolen by a Chinese firm.

According to the company’s foreign trade department head Pham Ngoc Anh, in 2007 the firm linked up with a Chinese partner who was assigned exclusive rights for Kem Nghia product distribution in the Chinese market.

Cooperation between both sides collapsed in 2008, however, and Kem Nghia teamed up with another Chinese distributor. However, the firm later realised its former Chinese partner continued illegally using Nghia nippers brand name in transactions.

“After learning our brand was illicitly used, we altered our product packaging and resorted to Chinese media support to announce the new brand name ‘Nghia cuts’ to Chinese customers,” said Anh.

To minimise brand-related risks, Kem Nghia resorted to Pham & Associates Lawyer Office support to register for brand protection in 20 countries worldwide.

In another case, Southern Rubber Industry JSC (Casumina) deputy general director Le Van Tri said its Gold Star tube products not only saw their brand name used illegally by other firms but the products were also imitated in the Chinese market. Dealing with these issues reportedly ate up much of the firm’s capital and cost a great deal of effort.

“We work with market watchdog teams to deter counterfeit goods from crossing border gates. In the home market wherever fake goods are sold, our employees put up posters making clear real product specifications and quality standards to help consumers differentiate between real and fake goods,” said Tri.

But with a slew of local firms potentially losing their trademarks to the hands of illegal foreign firms, Ho Chi Minh City Lawyer Association’s VNC Lawyer Office head Hoang Van Son said to shield their rights and interests in the short term local firms should define major areas where their products are sold and register for brand protection in these areas. In areas falling within the realm of common market agreements such as EU and ASEAN or free trade areas (FTA), local firms only have to register with one country in these areas.

“Firms should not wait until they grow famous to register for brand protection,” Son said, adding that in principle the Law on Intellectual Property gives priority to people who earlier register, therefore firms, having their brands stolen, often have to negotiate with violators first. If negotiations drop, they can file lawsuits against defendants at very costly charges.