Measures to Prevent and Ensure Administrative Sanctions of Software Piracy in Vietnam

Vietnam is among countries with the highest rate of software piracy in the world, although the rate has reduced from 92% in 2004, to 81% in 2011, 78% in 2015 according to the report of BSA, The Software Alliance that promote legal software use and advocates for public policies that foster technology innovation and drive growth in the digital economy.

 

Computer software is protected as literary works, one of types of works eligible for copyright protection in accordance with Article 14 of Vietnam law on intellectual property 2005, amended and supplemented in 2009. Unlicensed software is unauthorized use or distribution of copyrighted software.  Copyright infringements include publishing, distributing, copying, using, leasing out, duplicating, importing, exporting a work without permission from the author or copyright holder according to Article 28 of Vietnam law on intellectual property 2005, amended and supplemented in 2009.

The government of Vietnam has been striving to coordinate between ministries to increase awareness and encourage the software license compliance. Further, Ministry of Culture, Sports and Tourism has coordinated with Ministry of Public Security to increase frequency of inspecting the software license compliance in Vietnam as part of intellectual property right enforcement effort.

According to the provisions of Article 215 of the 2005 Intellectual Property Law, there are measures under the law of Vietnam to prevent and secure administrative sanctions.

In the following cases, organizations and individuals may request Vietnam competent agencies to apply preventive measures and ensure administrative sanction as provided for in Clause 2, Article 215 of the 2005 Intellectual Property Law:

-An act of infringement of intellectual property rights is likely to cause serious loss and damage to consumers or society;

-Material evidence of the infringement is likely to be dispersed or there are indications that the offender will evade responsibility;

In order to secure enforcement of a decision imposing an administrative penalty, preventive measures and/or measures to secure enforcement of administrative penalties which may be applied in accordance with administrative procedures to acts of infringement of intellectual property rights shall comprise:

-Temporary detention of persons;

-Temporary custody of infringing goods, material evidence and facilities;

-Body searches;

-Searches of means of transport and objects; searches of places where infringing goods, material evidence and facilities are hidden;

-Other administrative preventive measures in accordance with the law on dealing with administrative breaches.

Our software piracy lawyers in Vietnam at ANT Lawyers always monitor legal regulations to update our clients with changes and provide the best service.

 

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How to Set up Foreign Owned Company in IT and Computer Related Service?

Information technology and computer related service have played an extremely important role in life as well as in business activities on global scale.  The industrial revolution 4.0 has comprised of many technologies and IT and computer service take a big part of such.  The laws of Vietnam and the international commitments to which Vietnam is a party have no restrictions on foreign investors in terms of both the form of investment and the proportion of capital contribution in business in this field. Further, Vietnam prioritizes and encourages development in the field of IT and computer services which is considered attracting high level of intelligence and green business. The investors have grown confidence in Vietnam’s increasingly improved legal systems to protect the Intellectual Property rights in trademark and copyright to protect the company and individuals to exploit economic benefits in IT and computer related service areas.

IT is the core foundation of smart city, intelligent transport system, intelligent education.  Computer services and related services include: consulting services related to computer hardware installation, software implementation services, data processing services, database services, services maintenance and maintenance of office machinery and equipment, including computers and other computer services.

Under Vietnam’s WTO commitments, foreign investors are allowed to set up 100% foreign-invested enterprises to conduct business in IT and computer services and related services. At the same time, it is allowed for computer service business enterprises to set up branches when there is a need to generate additional business activities at locations outside the head office of the enterprise.

To establish an enterprise with 100% foreign invested capital, investors need to apply for an Investment Registration Certificate in accordance with the Law on Investment 2014 and an Enterprise Registration Certificate in accordance with the Law on Enterprise 2014.

A dossier of application for an Investment Registration Certificate comprises: a written request for implementation of an investment project; copy of identity card, citizen identity card or passport for individual investor and copy of establishment certificate or equivalent document certifying legal status for institutional investor; investment project proposal; copies of the latest 2-year financial statements or commitment of financial support of the parent company or financial institution or guarantee of investor’s financial capacity or documents explaining the financial capacity of the house invest; a copy of the location lease agreement or other documents certifying that the investor has the right to use the project location. If the project uses technologies on the list of technologies restricted from transfer, the explanation of the use of technologies must be submitted. Within 15 days from the date of receiving the complete and valid file, the Department of Planning and Investment will issue the Investment Registration Certificate to the foreign investor.

An Enterprise Registration Certificate dossier comprises: an application for enterprise registration; enterprise’s regulations; a list of members of a limited liability company with two or more members or a list of general partners; a notarized copy of identity card or valid passport of individual member; a notarized copy of the Enterprise Registration Certificate of the organization’s member; a notarized copy of valid identity card or passport of the organization’s legal representative; copy of Investment Registration Certificate. After 03 working days from the date of receiving a complete and valid dossier, the Department of Planning and Investment will issue an Enterprise Registration Certificate.

For the establishment of a branch, a dependent unit of the enterprise, tasked to perform all or a part of the functions of the enterprise, including an authorized representative function, business lines of a branch must be consistent with the business line of the enterprise. When registering a branch operation, the enterprise must send a notice of setting up the branch to the Business Registration Office where the branch is located. A dossier of establishment of a branch comprises of a notice of establishment of a branch; branch establishment decisions; decisions to appoint branch heads; minutes of meeting of establishment of branch; copy of the Business Registration Certificate; copy of identity card or Passport of the head of branch. Within 3 working days after receiving a valid dossier, the Enterprise Registration Office shall grant a branch operation registration certificate.

The investors should pay attention to legal compliance since incorporation and during the operation in accordance with the law.  ANT Lawyers with offices in Hanoi, HCMC and Da Nang will be helping the clients to ensure the efficient operation from legal perspective.

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How Important is End-User License Agreement in Vietnam?

End-user license agreement (EULA) is a legal agreement enter between two parties which are software developer or provider and software user. Terms and Conditions could cover a large scope of matters, for example, payment schedule, privacy policy, providing service to third party, solving arisen disputes and even inclusive of EULA. Whilst, EULA almost focuses on agreement of giving the user using software right and includes the regulations related to grant of license, limitations or using period of the software.

Software Compliance Law Firm in Vietnam

Normally, after the user downloads the software and officially install it, an EULA would be shown out for user to understand its rights and obligations and agreed to. EULA may be called by different names which are License Agreement, Software license agreement, etc.

What is the nature of EULA?

This is an commitment which developer or provider create and user must abide by before installing the software. However, this does not mean from the time user agrees to EULA, user will be the owner of the software. The user only has the legal using right to that software. Some important matters to consider would be granting of license, limitation of granting of license, and IP.

Firstly, “Granting of License” is a prerequisite of this agreement when clearly state that user will be granted using software right. Secondly, the term “Limitation” is also a very important term of EULA as after installing, user may utilize the software in lots of purposes which are both legal and illegal and may affect the software developer/provider or any third party. Thus, this term particularly regulates the activities which users are not allow to do while using the software. Thirdly, “Intellectual Property” is a pretty popular term in almost all type of agreements to protect the developer in copyrights. Besides, there are other terms such as “software update, maintenance and technical assistance, ability limitation, regulated law, etc.” and for each particular case and purpose of the owner, the agreement might also cover other appropriate terms.

End User License Agreement is a very important agreement attached to the software to guide the users and protect rights of the software developer or provider. Therefore, this agreement should be anticipating all cases as software owner wish to avoid disputes and even in the case of violation, the agreement will be the starting points to recover the damages to the developer and software owner.

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How do I protect intellectual property for my software?

First, you must protect the code. You must have agreements with the developers, confirming that any code they will develop working on your project is your sole property. This is a must. You might want an attorney to draft the agreement. Copyright will protect the code once it is created, you might get an official protection. However, you will have to publish the source code, in this case.

Software Compliance Lawyer in Vietnam

Second, you must protect the trademark (this can wait if you are low on cash). It has to be protected, otherwise someone else can monetize on your success, nonetheless, you can protect it once your software starts selling. However, I do recommend checking if the name is available prior to naming your software, it might be painful to change the name when the software is published.

Third, you can protect some features of your software with patents. Patents are the main reason why Microsoft is flourishing.

Source: Quora

If you are looking for an IP attorney, but are concerned about the typical costs associated with the traditional legal search, you should visit ANT Lawyers where we work to trim those costs. We will match you with an experienced IP attorney in Vietnam for a free, no obligation consultation. Hope this helps.

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Why is software copyrighted?

Copyright is the answer to a major problem: how do you protect something creative that took a lot of work to create, but very little to copy? That protection is important, because few people will, or even can, create something that other people want to enjoy, unless they have some reward at the end. This is especially true for software, where making an absolutely perfect copy is easy.

Software Compliance Law Firm in Vietnam

Writing software is as creative as writing a book or movie. A lot of decisions and tradeoffs have to be made, and today software takes millions, even billions, of dollars to put together. As a society, we want to incentivize that work. Copyright provides the solution.

Example: Company A develops some new software. An engineer of company A makes a copy of the software and starts a new company selling the same software. Most people would consider such an action illegal.

Software is copyrighted because it represents the intellectual property of its creator, so it needs to be protected from being copied.

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Measures to Prevent and Ensure Administrative Sanctions of Software Piracy

Vietnam is among countries with the highest rate of software piracy in the world, although the rate has reduced from 92% in 2004, to 81% in 2011, 78% in 2015 according to the report of BSA, The Software Alliance that promote legal software use and advocates for public policies that foster technology innovation and drive growth in the digital economy.

Copyright Enforcement Law Firm in Vietnam

Computer software is protected as literary works, one of types of works eligible for copyright protection in accordance with Article 14 of Vietnam law on intellectual property 2005, amended and supplemented in 2009. Unlicensed software is unauthorized use or distribution of copyrighted software.  Copyright infringements include publishing, distributing, copying, using, leasing out, duplicating, importing, exporting a work without permission from the author or copyright holder according to Article 28 of Vietnam law on intellectual property 2005, amended and supplemented in 2009.

The government of Vietnam has been striving to coordinate between ministries to increase awareness and encourage the software license compliance. Further, Ministry of Culture, Sports and Tourism has coordinated with Ministry of Public Security to increase frequency of inspecting the software license compliance in Vietnam as part of intellectual property right enforcement effort.

According to the provisions of Article 215 of the 2005 Intellectual Property Law, there are measures under the law of Vietnam to prevent and secure administrative sanctions.

In the following cases, organizations and individuals may request Vietnam competent agencies to apply preventive measures and ensure administrative sanction as provided for in Clause 2, Article 215 of the 2005 Intellectual Property Law:

-An act of infringement of intellectual property rights is likely to cause serious loss and damage to consumers or society;

-Material evidence of the infringement is likely to be dispersed or there are indications that the offender will evade responsibility;

In order to secure enforcement of a decision imposing an administrative penalty, preventive measures and/or measures to secure enforcement of administrative penalties which may be applied in accordance with administrative procedures to acts of infringement of intellectual property rights shall comprise:

-Temporary detention of persons;

-Temporary custody of infringing goods, material evidence and facilities;

-Body searches;

-Searches of means of transport and objects; searches of places where infringing goods, material evidence and facilities are hidden;

-Other administrative preventive measures in accordance with the law on dealing with administrative breaches

How ANT Lawyers Could Help Your Business?

To learn more about ANT Lawyers IP Practice or contact our Intellectual Property Lawyers in Vietnam for advice via email ant@antlawyers.vn or call our office at (+84) 24 32 23 27 71

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