Decree No. 54/2000/ND-CP On the protection of industrial property rights for trade secrets, geographical indications, trademarks, and unfair competition related to industrial property

Article 1. Scope of application

This Decree provides detailed regulations on the protection of industrial property rights for certain "other objects" specified in Article 780 of the Civil Code dated October 28, 1995, including: trade secrets, geographical indications, trademarks, and the protection of rights against unfair competition related to industrial property.

Article 2. Applicability

1. This Decree applies to organizations and individuals, both domestic and foreign, engaged in business activities within the territory of Vietnam.

2. This Decree also applies to foreign organizations and individuals who, although not engaged in business activities within the territory of Vietnam, fall under any of the following circumstances:

a) Organizations and individuals whose industrial property rights are protected according to the provisions of the Paris Convention or other international treaties recognizing reciprocal protection of industrial property that Vietnam has signed or acceded to;

b) Organizations and individuals from countries or territories that have mutually accepted the principle of reciprocity in the protection of industrial property rights for each other's organizations and individuals.

Article 3. Application of legal documents

The protection of trade secrets, geographical indications, trademarks, and rights against unfair competition in the field of industrial property must comply with the provisions of this Decree and other relevant legal documents of Vietnam.

In cases where an international treaty to which Vietnam is a party contains provisions different from those of this Decree, the provisions of such international treaty shall apply.

Article 4. Explanation of terms

The following terms used in this Decree shall be understood as follows:

1. "Trade indicators" are signs or information aimed at guiding the commercialization of goods and services, including product trademarks, trade names, business symbols, business slogans, geographical indications, product packaging designs, product labels...

2. "Using trade indicators" refers to acts of affixing such trade indicators onto goods, product packaging, service means, transaction documents, advertising media; selling, advertising for sale, storing for sale, importing goods bearing such trade indicators;

3. "Investment outcomes" refer to knowledge and information in the form of technology, inventions, utility models, industrial designs, technical know-how, trade secrets..., obtained from financial or intellectual investment activities;

4. "Using investment outcomes" refers to acts of using the knowledge and information stipulated in Clause 3 of this Article to carry out production activities, supply of services, commercialization of goods; selling, advertising for sale, storing for sale, importing products produced using such knowledge and information.

Article 5. Conditions for establishing industrial property rights for trade secrets, geographical indications, and trademarks

Industrial property rights for trade secrets, geographical indications, and trademarks are automatically established when all conditions set forth in Articles 6, 10, and 14 of this Decree are met without the need for registration with competent state authorities.

Article 6. Trade Secrets

1. Trade secrets protected are investment outcomes in the form of information meeting the following conditions:

a) Not being common knowledge;

b) Having applicability in business and, upon use, providing the holder with a competitive advantage over those who do not hold or use such information;

c) Being kept confidential by the owner through necessary measures to prevent disclosure and easy access.

2. Other non-business-related secret information, such as personal secrets, administrative management secrets, security and defense secrets, are not protected as trade secrets.

Article 7. Owner of industrial property rights for trade secrets

1. The owner of industrial property rights for trade secrets is an organization or individual that has invested to create or obtain investment outcomes as trade secrets.

2. In cases where trade secrets are created or obtained by a contractor or a party performing a contract during the execution of assigned tasks, such trade secrets belong to the employer or the party assigning the work, unless otherwise agreed by the parties involved.

Article 8. Content and duration of protection of industrial property rights for trade secrets

1. The owner of industrial property rights for trade secrets has the right to possess, use, and dispose of trade secrets in accordance with the law.

2. The rights of the owner of industrial property rights for trade secrets are protected while the trade secrets continue to meet the conditions set forth in Clause 1 of Article 6 of this Decree.

Article 9. Transfer of industrial property rights for trade secrets

1. Industrial property rights for trade secrets may be transferred or inherited in accordance with the law.

2. The transfer of industrial property rights for trade secrets is carried out in the form of a written contract, in which the transferring party must clearly specify the trade secrets being transferred. If the parties agree to only transfer the right to use the trade secrets (trade secret license), the receiving party is obligated to implement necessary confidentiality measures as required by the transferring party.

Article 10. Geographical Indications

1. Protected geographical indications are information about the geographical origin of goods meeting the following conditions:

a) Represented in the form of a word, sign, symbol, or image, used to indicate a country or a region or locality within a country;

b) Indicate on goods, packaging, or transaction documents related to the sale of goods to indicate that such goods originate from a country, region, or locality where the characteristics of quality, reputation, fame, or other features of such goods are primarily due to their geographical origin.

2. If the geographical indication is a name of origin of goods, protection shall be carried out in accordance with the current laws on the name of origin of goods.

3. Geographical information that has become a common name for goods and has lost its ability to indicate geographical origin shall not be protected as a geographical indication under this Decree.

Article 11. The person entitled to use the geographical indication

The person entitled to use the geographical indication is any organization or individual conducting production activities of goods bearing such indication within the national territory, region, or corresponding locality, provided that the goods produced by them must maintain the reputation or fame inherent to such goods.

Article 12. Content of industrial property rights over geographical indications

1. The person entitled to use the geographical indication has the right to display the indication on goods, packaging, and transaction documents for the sale of goods and advertising for the corresponding goods.

2. The right to use the geographical indication cannot be transferred.

Article 13. Term of protection of industrial property rights over geographical indications

The right to use the geographical indication is protected when it still meets all conditions for the geographical indication prescribed in Clause 1, Article 10 and the conditions for the production activities of the person entitled to use the geographical indication prescribed in Article 11 of this Decree.

Article 14. Trade name

A trade name is protected if it is the name used by an organization or individual in business activities and satisfies the following conditions:

a) It is a combination of letters, which may include numbers, and is pronounceable;

b) It has the ability to distinguish the business entity bearing that name from other business entities in the same field of business.

2. The following names shall not be protected as trade names:

a) Names of administrative agencies, political organizations, socio-political organizations, social organizations, occupational social organizations, or subjects unrelated to business activities;

b) Names intended to perform the function of a trade name but lack the ability to distinguish the business entity of commercial establishments in the same field;

c) Trade names that cause confusion with the trade names of others already in use in the same area and field of business, causing confusion with the trademarks of others already protected before the use of that trade name began.

Article 15. The owner of the industrial property right over the trade name

The owner of the industrial property right over the trade name is an organization or individual conducting business activities under that trade name.

Article 16. Content of industrial property rights over trade names

1. The owner of the industrial property right over the trade name has the right to use the trade name for business purposes by using the trade name to identify themselves in business activities, displaying the trade name in transaction documents, signs, products, goods, packaging, and advertising.

2. The owner of the industrial property right over the trade name has the right to transfer the trade name to another party through a contract or inheritance, provided that the transfer must be conducted together with the entire business establishment and business activities under that trade name.

Article 17. Term of protection of industrial property rights over trade names

Industrial property rights over the trade name are protected as long as the owner continues to conduct business under that trade name.

Article 18. Acts infringing industrial property rights over business secrets

Acts infringing industrial property rights over business secrets include:

1. Accessing or collecting information belonging to a business secret by overcoming the security measures of the legitimate owner of the business secret;

2. Disclosing or using information belonging to a business secret without permission from the owner of the business secret;

3. Breaching a confidentiality agreement or taking advantage of the trust of a person bound by confidentiality obligations to access, collect, and disclose information belonging to the owner of the business secret;

4. Accessing or collecting information belonging to another's business secret when they submit applications for permits related to business operations or product circulation, especially pharmaceuticals and agrochemical products, by overcoming the security measures of administrative agencies, or using such information for business purposes, including applications for permits related to business operations or product circulation.

Article 19. Acts infringing industrial property rights over geographical indications

Acts infringing industrial property rights over geographical indications include:

1. Using any trademark identical or similar to a protected geographical indication to create a false impression about the geographical origin of goods;

2. Using any trademark identical or similar to a protected geographical indication for goods identical, similar, or related that do not guarantee the reputation or fame of goods bearing the geographical indication, including cases where used with terms such as "method," "style," "type," "imitation," or similar terms;

3. Using a geographical indication for wine or spirits for wines or spirits not originating from the indicated territory, even if the true place of origin of the goods or the geographical indication is mentioned in a different language or used with terms such as "style," "type," "form," "imitation," or similar terms.

Article 20. Acts infringing industrial property rights over trade names

The act of infringing industrial property rights on trade names is any act of using any commercial designation that is identical or similar to another person's trade name for the same type of product or service, or for similar products or services, causing confusion about the business subject, business establishment, or business activities under that trade name.

Article 21. The right to request handling of acts infringing industrial property rights on trade secrets, geographical indications, and trade names.

1. The owner of industrial property rights on trade secrets and trade names and the user of geographical indications has the right to request competent state agencies to compel the person committing the infringement to cease the infringing act and compensate for damages.

2. In cases where there are acts infringing industrial property rights on trade names or disseminating false information about trade names, misleading geographical indications of goods causing consumers to be confused, consumers have the right to request competent state agencies to compel the person committing such acts to cease those acts and compensate consumers for damages.

3. The statute of limitations for exercising the right to request handling of infringing acts as stipulated in Clause 1 and Clause 2 of this Article is one year from the date of discovery of the infringing act but not exceeding three years from the date the infringing act occurred.

Article 22. Obligation to Prove

1. When exercising the right to request handling of infringing acts as stipulated in Clause 1 of Article 21 of this Decree, the owner of industrial property rights on trade secrets and trade names and the user of geographical indications must prove the conditions for establishing their rights and the scope of their rights; clearly state the name and address of the person who committed the infringing act; provide evidence regarding the scope and extent of the infringing act.

In cases where compensation for damages is requested, the owner of industrial property rights on trade secrets and trade names and the user of geographical indications must prove the extent of damage caused by the infringer.

2. If the person requesting handling of the infringing act is a consumer, they must clearly state the name and address of the infringer, provide evidence of the infringing act, and prove the extent of damage (if any).

Article 23. Procedure and formalities for handling acts infringing industrial property rights on trade secrets, geographical indications, and trade names

Handling of acts infringing industrial property rights on trade secrets, geographical indications, and trade names shall be carried out according to the procedure and formalities for handling acts infringing other industrial property rights.

Article 24. Acts of unfair competition related to industrial property

Acts of unfair competition related to industrial property include:

1. Using commercial designations to mislead perceptions and information about business subjects, business establishments, business activities, goods, services, with the purpose of:

a) Exploiting the reputation and fame of another producer or trader in their own production and business activities;

b) Damaging the reputation and fame of another producer or trader in their own production and business activities;

c) Causing confusion about the origin, method of production, features, quality, quantity, or other characteristics of goods or services; about the conditions for providing goods or services... to consumers during the process of recognizing and choosing goods or services or business activities.

2. Appropriating and using the investment results of others without permission.

Article 25. Rights against unfair competition related to industrial property

1. Organizations and individuals suffering losses or at risk of suffering losses due to unfair competitive acts within the field of industrial property have the right to request competent state agencies to compel the person engaging in unfair competitive acts to cease such acts, demand compensation for losses; administratively handle or criminally pursue the person engaging in unfair competitive acts.

2. Consumer associations and professional associations of organizations and individuals have the right to represent their members in exercising the rights stipulated in Clause 1 of this Article.

Article 26. Obligation to prove of organizations and individuals requesting handling of unfair competitive acts

Organizations and individuals exercising the right to request handling of unfair competitive acts as stipulated in Article 25 of this Decree have the obligation to prove to competent state agencies that their legitimate rights and interests or those of the organizations and individuals they represent are being infringed upon or are at risk of suffering losses due to unfair competitive acts.

Article 27. Handling of unfair competitive acts

Organizations and individuals engaging in unfair competitive acts within the field of industrial property will be administratively handled or criminally pursued depending on the nature and severity of the acts; if damage is caused, compensation must be provided according to the law.

Article 28. Contents of state management on the protection of industrial property rights for trade secrets, geographical indications, and trade names and the protection of rights against unfair competition related to industrial property

1. Issuing policies, strategies, plans, and legal documents related to the development of industrial property activities and the protection of trade secrets, geographical indications, trade names, and rights against unfair competition;

2. Protecting the legitimate rights and interests of the State, organizations, and individuals in the field of industrial property related to trade secrets, geographical indications, trade names, and rights against unfair competition;

3. Organizing the implementation of legal normative documents and industrial property policies on the protection of trade secrets, geographical indications, trade names, and rights against unfair competition.

4. Manage activities related to business consulting and representation services concerning industrial property that involve trade secrets, geographical indications, trademarks, and unfair competition prevention.

5. Train and build a cadre of staff working in the field of industrial property involving trade secrets, geographical indications, trademarks, and unfair competition prevention.

6. International cooperation on industrial property involving trade secrets, geographical indications, trademarks, and unfair competition prevention.

7. Guide, inspect, and supervise the implementation of policies and compliance with laws on industrial property involving trade secrets, geographical indications, trademarks, and unfair competition prevention.

8. Receive, handle complaints and denunciations, and address violations of laws on industrial property involving trade secrets, geographical indications, trademarks, and unfair competition prevention.

Article 29. Responsibilities of state agencies authorized to manage the protection of industrial property rights related to trade secrets, geographical indications, trademarks, and the prevention of unfair competition.

1. The Ministry of Science and Technology and Environment is the government agency responsible for unified management of the State's affairs regarding industrial property involving trade secrets, geographical indications, trademarks, and unfair competition prevention throughout the country, and has the responsibility to organize and direct the implementation of systems, policies, and legal regulations on industrial property involving trade secrets, geographical indications, trademarks, and unfair competition prevention.

2. The Intellectual Property Office under the Ministry of Science and Technology and Environment shall be responsible for assisting the Minister of Science and Technology and Environment in performing the following tasks:

a) Coordinate with other state agencies as well as social organizations to enforce measures to protect industrial property rights involving trade secrets, geographical indications, trademarks, and unfair competition prevention, and ensure strict enforcement of legal regulations on industrial property involving trade secrets, geographical indications, trademarks, and unfair competition prevention, including appraising conditions for establishing rights, content of rights, and acts infringing such rights concerning trade secrets, geographical indications, trademarks, and unfair competition practices at the request of state agencies, organizations, and individuals.

b) Receive and resolve complaints and denunciations concerning industrial property involving trade secrets, geographical indications, trademarks, and unfair competition prevention within its jurisdiction.

c) Assess professional qualifications, issue certificates of practice, and manage the professional aspects of organizations providing representation services concerning industrial property involving trade secrets, geographical indications, trademarks, and unfair competition prevention.

d) Direct professional training and organize specialized training on industrial property involving trade secrets, geographical indications, trademarks, and unfair competition prevention for industrial property management agencies under ministries, sectors, localities, and institutions.

e) Within the scope of authorization, conduct international cooperation activities in the field of industrial property involving trade secrets, geographical indications, trademarks, and unfair competition prevention.

3. Ministries, ministerial-level agencies, governmental agencies, provincial People's Committees, and centrally-administered municipal People's Committees within their respective functions and duties shall be responsible for organizing, directing, and managing industrial property activities involving trade secrets, geographical indications, trademarks, and unfair competition prevention in their respective sectors or localities.

Scientific, technological, and environmental management agencies in sectors and localities shall assist sector or local leadership in performing the aforementioned functions and carry out the following tasks:

a) Propose specific measures to implement state policies on industrial property involving trade secrets, geographical indications, trademarks, and unfair competition prevention to the Minister, head of a ministerial-level agency, head of a governmental agency, Chairman of a provincial People's Committee, or Chairman of a centrally-administered municipal People's Committee, and organize the implementation of these measures.

b) Organize the management of the protection of industrial property rights involving trade secrets, geographical indications, trademarks, and unfair competition prevention in sectors and localities, and implement measures to enhance the effectiveness of such management.

c) Promote the dissemination of policies on industrial property involving trade secrets, geographical indications, trademarks, and unfair competition prevention, coordinate with social organizations to promote creative movements and industrial property activities.

d) Assist business entities under their management in proving conditions for establishing industrial property rights involving trade secrets, geographical indications, trademarks, and unfair competition prevention both domestically and internationally.

e) Coordinate with law enforcement agencies to protect industrial property rights involving trade secrets, geographical indications, trademarks, and unfair competition prevention, and handle violations of laws on industrial property involving trade secrets, geographical indications, trademarks, and unfair competition prevention, including appraising conditions for establishing rights, content of rights, and acts infringing such rights concerning trade secrets, geographical indications, trademarks, and determining unfair competition practices related to industrial property at the request of state agencies, organizations, and individuals.

Article 30. Administrative Violation Handling

The handling of administrative violations concerning the protection of intellectual property rights for trade secrets, geographical indications, trade names, and unfair competition related to intellectual property shall be governed by other Decrees of the Government.

Article 31. Complaints, accusations, and resolution of complaints and accusations

1. Organizations and individuals have the right to lodge complaints with competent authorities, organizations, or individuals regarding administrative decisions and administrative acts that contravene the law in the activities of protecting intellectual property rights for trade secrets, geographical indications of goods, trade names, and the protection of rights against unfair competition related to intellectual property.

2. Individuals have the right to report to competent authorities, organizations, or individuals about unlawful acts in the activities of protecting intellectual property rights for trade secrets, geographical indications of goods, trade names, and the protection of rights against unfair competition related to intellectual property.

3. Authorities, organizations, or individuals with competence upon receiving complaints or reports shall be responsible for resolving them promptly and in accordance with the law as prescribed by laws on complaints and reports.

Article 32. Transitional Provisions

Trade secrets, geographical indications, and trade names that existed before this Decree comes into effect and still meet all conditions for protection as stipulated in this Decree shall be protected in accordance with the provisions of this Decree.

Article 33. Implementation Provisions

This Decree takes effect fifteen days from the date of signature.

The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of People's Committees of provinces and centrally governed cities are responsible for implementing this Decree./.