What are the advantages of the Patent Cooperation Treaty (PCT)?

The advantages of the Patent Cooperation Treaty

The PCT is an international treaty with more than 145 Contracting States. The PCT makes it possible to seek patent protection for an invention simultaneously in a large number of countries by filing a single “international” patent application instead of filing several separate national or regional patent applications. The granting of patents remains under the control of the national or regional patent Offices in what is called the “national phase”.

The PCT System has many advantages for you as an applicant, for the patent Offices and for the general public:

You have up to 18 months more than if you had not used the PCT to reflect on the desirability of seeking protection in foreign countries, to appoint local patent agents in each foreign country, to prepare the necessary translations and to pay the national fees;

If your international application is in the form prescribed by the PCT, it cannot be rejected on formal grounds by any PCT Contracting State patent Office during the national phase of the processing of the application;

The international search report and written opinion contain important information about the potential patentability of your invention, providing a strong basis for you to make business decisions about how to proceed;

You have the possibility during the optional international preliminary examination to amend the international application, enter into dialogue with the examiner to fully argue your case and put the application in order before processing by the various national patent Offices;

The search and examination work of patent Offices in the national phase can be considerably reduced thanks to the international search report, the written opinion and, where applicable, the international preliminary report on patentability that accompany the international application;

You may be able to fast-track examination procedures in the national phase in Contracting States that have PCT-Patent Prosecution Highway (PCT-PPH) agreements or similar arrangements;

Since each international application is published together with an international search report, third parties are in a better position to evaluate the potential patentability of the claimed invention;

For you as an applicant, international publication online puts the world on notice of your invention. You may also highlight your interest in concluding licensing agreements on PATENTSCOPE, which can be an effective means of advertising and looking for potential licensees;

You also achieve other savings in document preparation, communication and translations because the work done during the international processing is generally not repeated before each Office (for example, you submit only one copy of the priority document instead of having to submit several copies); and

If your invention appears to be not patentable at the end of the international phase, you may abandon the PCT application and you will have saved the costs you would otherwise have incurred by directly seeking protection in foreign countries, appointing local patent agents in each foreign country, preparing the necessary translations and paying the national fees.

Ultimately, the PCT:

Brings the world within reach;

Streamlines the process of fulfilling diverse formality requirements;

Postpones the major costs associated with seeking multinational patent protection;

Provides a strong basis for patenting decisions; and

Is used by the world’s major corporations, research institutions and universities when they seek multinational patent protection.

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Overview of the Patent Cooperation Treaty (PCT) System and The role of WIPO in the PCT

What is the Patent Cooperation Treaty (PCT)?

The PCT is an international treaty with more than 145 Contracting States. The PCT makes it possible to seek patent protection for an invention simultaneously in a large number of countries by filing a single “international” patent application instead of filing several separate national or regional patent applications. The granting of patents remains under the control of the national or regional patent Offices in what is called the “national phase”.

The PCT procedure includes:

Filing: you file an international application with a national or regional patent Office or WIPO, complying with the PCT formality requirements, in one language, and you pay one set of fees.

International Search: an “International Searching Authority” (ISA) (one of the world’s major patent Offices) identifies the published patent documents and technical literature (“prior art”) which may have an influence on whether your invention is patentable, and establishes a written opinion on your invention’s potential patentability.

International Publication: as soon as possible after the expiration of 18 months from the earliest filing date, the content of your international application is disclosed to the world.

Supplementary International Search (optional): a second ISA identifies, at your request, published documents which may not have been found by the first ISA which carried out the main search because of the diversity of prior art in different languages and different technical fields.

International Preliminary Examination (optional): one of the ISAs at your request, carries out an additional patentability analysis, usually on an amended version of your application.

National Phase: after the end of the PCT procedure, usually at 30 months from the earliest filing date of your initial application, from which you claim priority, you start to pursue the grant of your patents directly before the national (or regional) patent Offices of the countries in which you want to obtain them.

How do I protect my invention in several countries?

Patents are territorially limited. In order to protect your invention in multiple countries you have a few options:

–  Direct or Paris route: you can directly file separate patent applications at the same time in all of the countries in which you would like to protect your invention (for some countries, regional patents may be available) or, having filed in a Paris Convention country (one of the Member States of the Paris Convention for the Protection of Industrial Property), then file separate patent applications in other Paris Convention countries within 12 months from the filing date of that first patent application, giving you the benefit in all those countries of claiming the filing date of the first application;

–  PCT route: you can file an application under the PCT, directly or within the 12-month period provided for by the Paris Convention from the filing date of a first application, which is valid in all Contracting States of the PCT and, therefore, simpler, easier and more cost-effective than both, direct or Paris route filings.

Who uses the PCT?

The PCT is used by the world’s major corporations, research institutions, and universities when they seek international patent protection. It is also used by small and medium sized enterprises (SMEs) and individual inventors. The PCT Newsletter contains a yearly list of the largest PCT filers.

What is the role of WIPO in the PCT?

WIPO administers the PCT. It also organizes the PCT Assembly, the PCT Working Group and the Meeting of International Authorities. Further, for each PCT application filed, WIPO is responsible for:

– Receiving and storing all application documents;

– Performing a formality examination;

– Publishing the international application on WIPO’s online database PATENTSCOPE;

– Publishing data about the PCT application as prescribed in the Treaty and Regulations;

– Translating various portions of the PCT application and certain associated documents into English and/or French, where necessary;

– Communicating documents to Offices and third parties; and

– Providing legal advice on request to Offices and users.

WIPO also:

– Provides overall coordination of the PCT System;

– Provides assistance to existing, new and potential Contracting States and their Offices;

– Provides advice on implementing the PCT in the national legislation and on setting up internal procedures in the Contracting States’ patent Offices;

– Publishes the PCT Applicant’s Guide and the PCT Newsletter;

– Creates and disseminates PCT information via the PCT website, webinars, and through telephone and e-mail assistance; and

– Organizes and gives PCT seminars and training courses.

Source: ANTLawyers.vn

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Vietnam M&A market hits US$1.8 billion in Jan-May

HCMC – Capital contributions and share purchases by foreign investors via mergers and acquisitions (M&A) deals amounted to around US$1.8 billion in the first five months of the year, up a whopping 116.2% compared to the same period last year.

Foreign investors engaged in 2,061 M&A transactions in the period, according to the Foreign Investment Agency under the Ministry of Planning and Investment. Foreign investors via M&A deals have now entered various sectors, including production and services.

For example, Thailand’s Siam Cement Group acquired the entire stake worth US$156 million in a cement manufacturer, Vietnam Construction Materials JSC, in the central province of Quang Binh, while South Korean food firm CJ CheilJedang Corporation raised its controlling stake to 71.6% in the former Cau Tre Export Processing JSC late last year.

In regard to the real estate sector, Singapore’s Keppel Land Limited through its subsidiary Krystal Investments Pte Ltd clinched a deal with the Southern Waterborne Transport Corporation (Sowatco) to acquire an additional 16% stake worth VND845.9 billion in the Saigon Centre property in downtown HCMC.

M&A deals in the real estate market could hit a record high this year as many investors are sounding out opportunities to pour billions of dollars in budget and mid-end apartments, offices, hotels and industrial parks, according to propertyservices provider Jones Lang LaSalle Vietnam.

The European Chamber of Commerce in Vietnam (EuroCham) says many investors consider M&A deals as the most effective way to penetrate the Vietnamese market and expand their business as well. This investment trend is expected to continue next year.

The growth of M&A deals is thanks to the 2014 Investment Law that clarifies some previously ambiguous regulations, according to analysts.

Specifically, foreign investors have no need to go through investment procedures if they choose investment capital contributions and share purchases.

Notably, Decree No. 60/2015/ND-CP allows investors to increase their ownership at many listed and public companies from 49% to 100%, except for those active in conditional business sectors.

Besides, they have seen more opportunities emerging, especially the Government’s effort to equitize State-owned enterprises to divest State stakes from non-core business operations.

Source: English.thesaigontimes.vn

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How Foreign Investors Could Handle Intellectual Property Dispute in Vietnam?

Intellectual property disputes in Vietnam

Foreign investor could handle intellectual property disputes in Vietnam through negotiation and mediation, arbitration or litigation depending on various factors.

Intellectual property rights is the rights of organizations, individuals to the intellectual property, including copyrights and related rights, industrial property rights, including trademark, patent, and industrial design and rights to the plant varieties. Under Vietnam intellectual property law, owners are granted certain exclusive right to the intangible assets. Intellectual property infringement occurs whenever the rights of any type of intellectual property are violated. The intellectual property disputes arise directly from all types of intellectual property as mentioned or commercial transactions and extraction process regarding to types of intellectual property such as license agreement, intellectual property transferring agreement.  Disputes could be settled by different methods, depending on the subjective wills of parties. The parties have right to choose any methods that they deem ideal to protect their interests.

Nowadays, international practice allows parties to choose one of two ways to settle their disputes, including dispute settlement mechanism without litigation (negotiation and mediation) and dispute settlement mechanism with litigation (civil litigation and arbitration). Typically, when disputes occur, parties often choose simplest methods before using other ones. The simplest methods are negotiation and mediation.

Negotiation is a procedure whereby parties work together and reach the solution by expressing their own point of views to the dispute. This method is used for small, non-complex disputes so that parties could be easy to reach a consensus about dispute settlement. Though this method is simple, it is hard for parties to shake their hands together and come to consensus. It is simply because each party always need advantages come to them. Besides, for example, if parties reach the consensus in settling dispute, there is no mechanism to ensure enforcement of dispute solution.

Mediation, different from negotiation, the participation of third party is requested by parties. However, the same thing between negotiation and mediation is that parties are sole those holding right to decide what solutions are applied to settle dispute. Despite the third party only act as intermediary, the mission of third party is really important. The third party helps to connect dispute parties and avoid stronger conflict between them. With experience and skills, they make opportunity for parties exchange information, help them express their standpoints, promote flexible solutions and suggest solution suitable for both of them. Of course, a methodswhich the third party proposes is solely recognized as a reference. In mediation, the information security is highly ensured. Parties are not forced to reveal any information that they want to keep as a secret. Besides, mediation helps parties minimize fees due to simple procedure. Moreover, mediation allows opportunity for parties to work together and reach settlement and typically, parties still keep their business relationship. Last but not least, parties can mediate in any period of dispute settling process. Mediation can be chosen as the first step to come to dispute settling process after each side’s endeavor.

After no result of both side’s endeavor, parties can choose one of the dispute settlement mechanism with litigation to settle dispute. Generally, the proceeding of civil litigation is more complex than the arbitration proceeding. In case one side needs a decision from court so as to end infringement, civil litigation is top priority. In the remaining case, arbitration is a choice with advantages. Arbitration is solely conducted when parties reach consensus that arbitration is a form of dispute resolution. Arbitration agreement must be a term of the core contract or an independent agreement.

Firstly, cost for arbitration is typically cheaper than traditional litigation. Attorney’s fees and expense are minimized in arbitration because arbitration is generally concluded in far less time than cases at court. Secondly, length of dispute settling time in arbitration is shorter than litigation in court because of simple procedure. Court cases generally require more counsel time and, thus, more expenses for preparation and trial than is needed in arbitration. Thirdly, settling dispute by arbitration is effective because of its flexibility. In arbitration, parties have right to choose form of arbitration (Ad hoc or permanent). Moreover, parties can schedule hearings and deadlines to meet their objectives and convenience. This flexibility allows parties save money, time and partially promote dispute settling process to be faster. Fourthly, arbitration is a secret proceeding. The decision is public, but the trial is close. This feature of arbitration is a big advantage for dispute involving trade secret or patent. Lastly, arbitration council’s decision is final. It means that contrary to decision of court, most of arbitration council’s decisions cannot be appealed. Chance for canceling arbitration’s decisions is not much, primarily because of basic mistakes about procedures.

Dispute settling method in arbitration is suitable for most of intellectual property disputes because this method meets the featured requirements of intellectual property dispute (multinational, information security, complexity). Mediation and arbitration can combine together in settling dispute. Firstly, dispute is settled by mediation. Then, in case if parties do not reach settlement in mediation, dispute will be settled by arbitration council. The advantage of this combination is that it promotes parties propose goodwill engagement in mediation and after that, will create more advantages for dispute resolution in arbitration.

To summarize, when facing a dispute relating to intellectual property right, foreign investor can handle out dispute through judging exactly about scale of dispute, financial capability, dispute settling time, level of information security because intellectual property is worthy assets that can impact development as well as existence of enterprises.

With highly professional staff and great experience in IP aspect in Vietnam, ANT Lawyers would like to support you in extending your intellectual property in Vietnam.

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Top 10 Challenges of Doing Business in Vietnam

Expanding gross domestic product (GDP), modern infrastructure and a dramatic increase in foreign direct investment (FDI) are signs that Vietnam has transformed into an attractive investment destination, but there are still barriers to doing business which are best navigated with local help on board.

Since 1988, there have been 13,544 foreign investment projects with a total registered capital of US$213 billion in Vietnam, building a large overseas investment sector which occupies about 17% of GDP and 43.4% of industrial product value. Overseas firms are attracted by Vietnam’s 87 million-strong population which supports a large and young workforce and that has also seen an increase in disposable income in recent years.

Strong economic growth rates have been a common feature of the Vietnamese economy since the 1990s, and even though the high levels slumped slightly during the global financial crisis, the country has rapidly returned to pre-crisis growth trends and is expected to continue on this path. Infrastructure, tourism development, and related real estate and retail sector development in urban areas are all attracting large amounts of FDI, and overseas firms are increasingly attracted by the country’s move from a centralized to a market-orientated economy.

However, The World Bank and International Finance Corporation (IFC) rank Vietnam in 99th place in the world for ease of doing business, which means it is essential to seek local help of law firms and lawyers in Vietnam when expanding into the country.

Starting a Business

There are 10 procedures to undertake when starting a business in Vietnam, making it among the most complex start-up environments in the world. What’s more, many tasks facing new corporate entities may be unfamiliar to overseas companies, making the task far more rigorous. Registration of the seal-sample at the State Agency, for example, or publicly announcing the formation in a local newspaper are procedures most companies generally don’t have to complete.

Dealing with Construction Permits

It takes 110 days and 11 procedures to get permits for construction in Vietnam, once again requiring interaction with several official departments. Inspections must be carried out by the Department of Construction and the municipality, and certificates should be obtained from the Firefighters Prevention Department, the Department of Construction and the Department of Natural Resources and Environment.

Getting Electricity

Getting electrical connection is among the most rigorous tasks facing startups in Vietnam, taking 115 days to complete and costing a significant percentage of income per capita. Inspections by the local power corporation are required before completing processes with the Traffic and Transport Department and the Firefighters Prevention Department.

Registering Property

Registering property inVietnam takes 57 days to complete, which is far higher than the OECD norm but around average for East Asia and Pacific. Contracts between the transferor and the transferee are signed before taxation is paid and registration for the right to use land is complete.

Getting Credit

Vietnam is home to quite a stable credit environment, and obtaining capital is a relatively smooth process for businesses. However, the lack of a private credit bureau can make the process a little trickier for overseas firms.

Protecting Investors

Investor protection is an area in which Vietnam needs to improve. It is ranked in 169th place by the World Bank and IFC, with a weak director liability index and shareholder suits index.

Paying Taxes

There are massive 32 corporate tax payments to be made each year which takes an average of 872 company hours to complete. Compared to the OECD norm of 176 and the East Asia and Pacific average of 209, taxation is one of the most burdensome processes of doing business in Vietnam.

Trading Across Borders

Given its strong manufacturing base and reliance on interconnectivity, trading across borders is a cheap endeavour. However, that isn’t to say the process is not complicated, and the stream of documentation required for both importing and exporting highlights that cross-border trade can be difficult at the best of times.

Enforcing Contracts and Resolving Insolvency

Enforcing contracts takes 400 days to complete and 34 procedures. Resolving insolvency is a far more laborious process, taking five years on average to complete and with a low recovery rate.

Culture

The Vietnamese believe in the teachings of the early Chinese philosopher Confucius which emphasize the importance of relationships, responsibility and obligation. Vietnam is also a collectivist country and community concerns will almost always come before business or individual needs.

ANT Lawyers

We have the local knowledge to help you navigate these minefields. Whether you want to set up in Vietnam or just want to streamline your Vietnamese operations, we could assist.

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Vietnam busts largest-ever drug cartel

Police raided 13 drug-producing labs across Vietnam, seizing over $8.8 million worth of narcotics.

Ho Chi Minh City police have arrested more than 20 people believed to be members of what they call the country's largest drug ring operating across the country.

The ring, headed by Van Kinh Duong, 36, has allegedly produced nearly 300 kilograms (660 pounds) of ecstasy pills and other synthetic drugs.

Duong was sentenced to six years in prison for illegal possession of drugs in 2008, according to Ho Chi Minh City's Cong An newspaper. However, he managed to escape from prison and set up his own drug production ring using the fake name Tran Ngoc Hieu.

His network included many labs in Ho Chi Minh City, Hanoi, Nha Trang and some southern provinces, according to the police. The labs were often set up in deserted areas and they would be relocated after every batch of narcotics produced. To avoid police detection, Duong would manage and monitor these labs through a social network and a camera system instead of physically visiting them.

The dozens of people working in the labs are all Duong's relatives.

The pills would often be trafficked from Ho Chi Minh City to Hanoi in suitcases of 50 kilograms (around 250,000 pills) each, and sold for VND180,000-200,000 ($8-9) per pill.

Duong's network has churned out nearly 300 kilograms of synthetic drugs and sold about 200,000 ecstasy pills between early 2016 until it was busted.

Police arrested Duong just as he landed at Ho Chi Minh City's Tan Son Nhat airport on April 6. At the same time, more than 200 police officers raided 13 of his ring's establishments across the country and arrested many members of the ring.

More than 500,000 ecstasy pills and 120 kilograms of narcotic powders with an estimated value of VND200 billion ($8.8 million) were seized during the raids. Police also seized VND10 billion $(440,000), 7 cars including a VND25 billion supercar and some real estate related to the crime.

The drug seizure was the largest ever in Vietnam, Phan Anh Minh, deputy director of the Ho Chi Minh City police department, said.

Further investigations are underway.

Vietnam has some of the world’s toughest drug laws. Those convicted of possessing or smuggling more than 600 grams of heroin or more than 2.5 kilograms of methamphetamine face the death penalty.

The production or sale of 100 grams of heroin or 300 grams of other illegal narcotics is also punishable by death.

 Source: E.vnexpress

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Vietnam to sign deals for up to $17 bln in US goods, services: prime minister

Vietnam will increase the import of high technologies and services from the U.S.

Vietnamese Prime Minister Nguyen Xuan Phuc said on Tuesday he would sign deals for U.S. goods and services worth $15 billion to $17 billion during his visit to Washington, D.C., mainly for high technology products and for services.

“Vietnam will increase the import of high technologies and services from the United States, and on the occasion of this visit, many important deals will be made,” Phuc told a U.S. Chamber of Commerce dinner.

Phuc, who is due to meet with U.S. President Donald Trump on Wednesday at the end of a three-day visit to the United States, did not provide any further details of the transactions.

GE Power Chief Executive Officer Steve Bolze told the dinner that General Electric Co will sign new business worth about $6 billion with Vietnam, but also offered no details.

Phuc’s comments came after U.S. Trade Representative Robert Lighthizer expressed concern about the rapid growth of the U.S. trade deficit with Vietnam, saying this was a new challenge for the two countries and he was looking to Phuc to help address it.

“Over the last decade, our bilateral trade deficit has risen from about $7 billion to nearly $32 billion,” Lighthizer said. “This concerning growth in our trade deficit presents new challenges and shows us that there is considerable potential to improve further our important trade relationship.”

Lighthizer and other Trump administration trade officials have pledged to work to reduce U.S. bilateral trade deficits with major trading partners. The $32 billion deficit with Vietnam last year, the sixth largest U.S. trade deficit, reflects growing imports of Vietnamese semiconductors and other electronics products in addition to more traditional sectors such as footwear, apparel and furniture.

The trade issue has become a potential irritant in a relationship where Washington and Hanoi have stepped up security cooperation in recent years given shared concerns about China’s increasingly assertive behavior in East Asia.

Phuc’s meeting with Trump makes him the first Southeast Asian leader to visit the White House under the new administration.

Vietnam was disappointed when Trump ditched the 12-nation Trans-Pacific Partnership (TPP) trade pact, in which Hanoi was expected to be one of the main beneficiaries, and focused U.S. trade policy on reducing deficits.

Source: E.Vnexpress

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