How Trademark Licensing in Vietnam Works?

What is trademark licensing in Vietnam?

Licensing of industrial property subject in general or of trademark in specific is regulated in Vietnam Intellectual Property law. Accordingly, for trademark licensing in Vietnam, the owner (licensor) grants permission to another (licensee) to use that trademark on mutually agreed terms and conditions in Vietnam.

The licensor remains control over the nature and quality of the goods or services associated with the trademark.  

The principle matter is the quality control in trademark licensing in Vietnam because the buyer expects to receive consistent quality of products or services no matter where the trademarked goods are bought or services are experienced.

The permission must be established in written form to avoid dispute in trademark licensing in Vietnam.

What are benefits of trademark licensing in Vietnam?

Trademark licensing in Vietnam could bring great benefits as following:

-Additional revenue

-Territorial expansion

-Benefits from others’ manufacturing, sales, distribution, marketing skills

-New channels of distribution

-Discontinued marks

-Strategic partnerships

-Convert a trademark infringer into a partner

-Increase consumer recognition and advertising

What forms of trademark licensing in Vietnam?

Trademark licensing in Vietnam could appear in various forms being:

-Franchising

-Merchandising

-Brand extension

-Co-branding

-Components or ingredient branding

-Standards

What types of trademark licensing contracts in Vietnam?

Accordingly, licensing of trademark includes the following types: exclusive contract, non-exclusive contract; sub-license contract.

Exclusive contract

Exclusive contract means a contract under which, within the licensing scope and term, the licensee shall have the exclusive right to use the licensed trademark while the licensor may neither enter into any trademark license contract with any third party nor, without permission from the licensee, use such trademark.

Non-exclusive contract

non-exclusive contract means a contract under which, within the licensing scope and term, the licensor shall still have the right to use the trademark and to enter into a non-exclusive trademark license contract with others.

Sub-license contract

Trademark sub-license contract means a contract under which the licensor is a licensee of the right to use such trademark pursuant to another contract.

What contract for trademark licensing in Vietnam covers?

In any type of the contracts, it is required to have the following contents: full names and addresses of the licensor and of the licensee; grounds for licensing; contract type; licensing scope including limitations on use right and territorial limitations; contract term; licensing price; rights and obligations of the licensor and of the licensee.  It is important to regulate on how the trademark licensing dispute resolution could be to address the potential disputes arisen between parties during the performance of the trademark licensing in Vietnam.  

Besides the above contents, the parties also need to take note on the validity of this contract. Different from assignment contract of trademark in Vietnam when it is required to register at National office of Intellectual Property of Vietnam to take effect, the licensing contract of trademark does not require this kind of registration for taking effect. Licensing contract shall automatically be terminated upon the termination of the licensor’s trademark right.

About ANT Lawyers, IP legal service in Vietnam

If Client needs any more information or request for legal advice regarding licensing of trademark or dispute in trademark licensing contract in Vietnam, our Intellectual Property attorney at ANT Lawyers will be of help.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.