Joint Circular No. 99/TC-KHCNMT guiding the management and financial transactions in activities of initiatives and industrial property.

CIRCULAR

JOINT DECREE OF THE MINISTRIES OF FINANCE AND SCIENCE, TECHNOLOGY AND ENVIRONMENT

GUIDELINES FOR MANAGEMENT,
INCOME AND EXPENSES IN THE FINANCIAL ACTIVITIES OF INNOVATIONS AND INDUSTRIAL PROPERTY

IMPLEMENTING THE COUNCIL OF MINISTERS' DECREE NO. 84/HĐBT OF MARCH 20, 1990 ON AMENDING AND COMPLEMENTING THE REGULATIONS ON INNOVATIONS AND TECHNICAL IMPROVEMENTS - RATIONALIZATION OF PRODUCTION AND PATENTS; REGULATIONS ON TRADEMARKS; REGULATIONS ON DESIGNS; REGULATIONS ON USEFUL MODELS TO ENFORCE THE ORDINANCE ON THE PROTECTION OF RIGHTS TO INDUSTRIAL PROPERTY, THE MINISTRIES OF FINANCE AND SCIENCE, TECHNOLOGY AND ENVIRONMENT ISSUE GUIDELINES ON THE COLLECTION AND EXPENDITURE OF FUNDS FOR INNOVATION AND INDUSTRIAL PROPERTY ACTIVITIES.

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. The funds for innovation and industrial property activities shall be used for the following purposes:

a) Research to create innovations, patents, useful models, designs, and product trademarks;

b) Organizing experimental application of innovations, patents, useful models, and designs;

c) Paying remuneration to authors of innovations, patents, useful models, and designs; paying bonuses to those who assist the authors and participate in the initial application of innovations, patents, useful models, and designs;

e) Organizing innovation and industrial property activities, evaluating conclusions on innovations, patents, useful models, information work, exhibitions, conferences, seminars, contests, field trips, and training courses on innovation and industrial property;

g) Processing registration for protection of patents, useful models, designs, and trademarks.

2. Source of funds:

a) For administrative and public service units, the funds for innovation and industrial property activities shall be provided from the state budget.

b) For production and business units, the funds for innovation and industrial property activities shall be taken from the development incentive fund.

c) Specifically, the funds for organizing evaluation, testing, trial application, and awarding bonuses and remuneration to authors of new plant varieties, animal breeds, disease prevention methods, diagnostic methods, and treatment methods for humans, animals, and plants shall be included in the annual research and technology budget of the Ministry of Agriculture and Food Industry and the Ministry of Health.

3. Accounting, settlement, and inspection:

Expenses for innovation and industrial property activities funded from any source shall be accounted for and settled separately according to each funding source and shall comply with current state regulations on accounting, reporting, approval, and inspection settlement procedures.

II. SPECIFIC PROVISIONS.

A. DETERMINATION OF BENEFITS OBTAINED FROM APPLYING INNOVATIONS, PATENTS, AND USEFUL MODELS:

1. Benefits obtained from applying innovations, patents, and useful models can be quantified in monetary terms (economic benefits) - referred to as profit money, or non-monetary forms (social benefits).

a) Profit money from applying innovations, patents, and useful models is the total amount of money saved from production and use of products or from applying recognized innovations, patents, and useful models from all sources of production (human resources, capital, raw materials, fuel, materials, energy, depreciation of fixed assets...).

b) Non-monetary benefits include those related to human health and life such as improved living and working conditions (reduced noise, toxicity, enhanced traffic safety, environmental protection, increased national defense and social security capabilities...).

2. METHODS FOR DETERMINING BENEFITS OBTAINED (PROFIT MONEY).

2.1. When determining profit money, only direct benefits obtained from applying innovations, patents, and useful models shall be considered; indirect benefits arising from the continued use of human resources, capital, raw materials, fuel, materials... obtained from applying these innovations, patents, and useful models shall not be counted when determining the amount of profit money.

2.2. Direct benefits are determined based on comparing economic and technical conditions before and after applying innovations, patents, and useful models.

- In cases where innovations, patents, and useful models are applied in agencies or units without a basis for comparison (the technical object has not been applied or produced in that agency or unit), the economic and technical standards of similar technical objects in other agencies or units shall serve as the basis for comparison. If similar technical objects are applied or produced in multiple agencies or units, the basis for comparison shall be the most advanced economic and technical standards among them.

- In cases where the technical object is completely new domestically, the basis for comparison shall be the average economic and technical standards of similar technical objects abroad.

- In cases where the technical object is completely new globally (or there is no information about it abroad), the profit money is the profit obtained from applying the said innovations, patents, and useful models at the agency or unit.

2.3. In cases where multiple innovations, patents, and useful models are applied in a single technical task, the benefits shall be evaluated based on the degree of impact of each innovation, patent, and useful model on the technical task according to a percentage of the overall benefit, and this shall be used to determine the remuneration for the author of each innovation, patent, and useful model.

2.4. When determining profit money, the accounting method of the agency or unit must be taken into account to deduct costs incurred due to the application of innovations, patents, and useful models.

2.5. Profit money from applying innovations, patents, and useful models shall be calculated in Vietnamese Dong; if the profit money is in foreign currency, it shall be converted to Vietnamese Dong at the exchange rate published by the Vietnam Foreign Trade Bank at the time of determining the profit money.

2. 6. The period for determining the profit from implementing inventions, utility models, design solutions, and profits obtained from using industrial designs (collectively referred to as profit).

a) The profit is determined annually from the date of implementation, which is the date on which the head of the agency or unit issues the decision to officially implement.

b) The first year of implementation is twelve months from the start date of implementation; the second year is the subsequent twelve months, etc.

c) In cases where inventions, utility models, design solutions, or industrial designs are implemented for less than twelve months, the profit is determined based on the actual implementation period.

d) If the time required to produce one unit of product according to the invention, utility model, design solution, or industrial design exceeds twelve months, the necessary time to complete one unit of product is considered a year of implementation, and the profit is determined during the actual implementation period.

e) In cases where inventions, utility models, design solutions, or industrial designs are implemented seasonally, the year of implementation is the actual seasonal implementation period.

B. COMPENSATION FOR AUTHORS AND INCENTIVE AWARDS FOR ASSISTANTS OF AUTHORS AND ORGANIZERS OF THE FIRST IMPLEMENTATION OF INVENTIONS, UTILITY MODELS, DESIGN SOLUTIONS, AND INDUSTRIAL DESIGNS.

1. In cases where the benefits obtained from implementing inventions, utility models, and design solutions can be quantified in monetary terms.

a) Obligations, deadlines, amounts, and conditions for payment of compensation, awards, and incentives are stipulated in the Regulations issued together with Decree No. 84/HĐBT dated March 20, 1990 of the Council of Ministers (now the Government).

b) Compensation for authors of inventions, utility models, design solutions, and industrial designs is not subject to a maximum limit (the minimum level is specified in the corresponding Regulations) and is at the discretion of the head of the agency or unit based on the profit obtained from the implementation of the invention, utility model, design solution, or industrial design.

c) Individuals who earn high income from implementing inventions, utility models, design solutions, and industrial designs must pay income tax according to Decree No. 119/HĐBT dated April 17, 1991 of the Council of Ministers (now the Government) and the guiding Circulars of the Ministry of Finance.

2. In cases where the benefits obtained from implementing inventions, utility models, and design solutions cannot be quantified in monetary terms.

a) The compensation for authors in such cases is determined based on the evaluation of the value of the invention, utility model, or design solution through the following criteria:

+ Efficiency in overcoming problems and technical efficiency.

+ Volume and scope of application of the invention, utility model, or design solution.

+ Complexity of the technical task.

+ Scientific and technical value.

b) In practice, when calculating efficiency in agencies and enterprises is too complex, temporary maximum and minimum levels are set as follows:

+ Compensation for authors of inventions:

Minimum level: 100,000 VND;

Maximum level: 3,000,000 VND.

+ Compensation for authors of utility models and design solutions:

Minimum level: 200,000 VND

Maximum level: 6,000,000 VND

III. FEES RELATED TO THE GRANTING AND MAINTENANCE OF THE EFFECTIVENESS OF INDUSTRIAL PROPERTY RIGHTS DOCUMENTS

1. The fee collection rates are revised and specifically regulated in the Appendix attached to this Circular.

2. Fees related to international applications under the Patent Cooperation Treaty (PCT): The National Office of Intellectual Property is responsible for collecting fees from applicants and transferring them to the International Bureau and the International Searching Authority according to the regulations implementing the Patent Cooperation Treaty (PCT).

3. Deadline and form for paying maintenance fees for the effectiveness of Industrial Property Rights Documents:

The deadline and form for paying fees will be specifically guided by the National Office of Intellectual Property.

4. Payment of fees into the state budget:

The National Office of Intellectual Property shall handle the procedures for paying collected fees into the state budget according to Circular No. 48-TC/TCT dated September 28, 1992 of the Ministry of Finance guiding the implementation of Decision No. 276/CT dated July 28, 1992 of the Chairman of the Council of Ministers on the unified management of various types of fees and charges; Pay into Chapter 11 Type 10 Item 2 Subitem 35 of the State Treasury.

In cases where fees are collected in foreign currency, they will be paid into Account:

212. 210.370.001 Vietnam Bank for Foreign Trade Fees related to the granting and maintenance of the effectiveness of Industrial Property Rights Documents (industrial property fees) are sources of revenue for the state budget and therefore must be paid into the state budget. However, to encourage payment, the Ministry of Finance will return 10% of the total fees collected, including both domestic and foreign currencies converted into Vietnamese Dong at the exchange rate published by the bank at each point in time, as rewards and compensation for scientific staff directly and indirectly involved in intellectual property work and to cover certain expenses related to the protection of intellectual property rights. Each year, the amount returned must be reported and settled according to the relevant regulations of the state.

IV. IMPLEMENTATION PROVISIONS.

1. This Circular replaces Circular No. 892/TT-TB dated August 4, 1982 and Circular No. 796/LBKH-TC dated May 30, 1988 of the Ministry of Finance - State Science and Technology Commission guiding the financial and award provisions in the Regulations on inventions, rationalization proposals, and patents. All previous regulations that conflict with this Circular are hereby abolished.

2. This Circular takes effect from the date of signature. For inventions, utility models, and design solutions that have been implemented but for which compensation has not yet been paid to the authors and incentive awards have not been given to assistants of the authors and organizers of the first implementation, the amounts will be re-determined according to this Circular.

ANNEX ATTACHED TO THE CIRCULAR

LEVELS OF FEES RELATED TO THE GRANTING, AMENDMENT, AND MAINTENANCE OF THE EFFECTIVENESS OF PROTECTION DOCUMENTS