How Trademark Licensing in Vietnam Works?

 How Trademark Licensing in Vietnam Works?

Vietnam's intellectual property law governs the licensing of industrial property subjects in general and trademarks in particular. As a result, when a trademark is licensed in Vietnam, the owner (the licensor) grants permission to another party (the licensee) to use the trademark in Vietnam under terms and conditions that have been mutually agreed upon.

The nature and quality of the products or services associated with the trademark are still under the control of the licensor.

Quality control is the most important aspect of trademark licensing in Vietnam because buyers expect consistent quality from trademarked goods or services regardless of where they are purchased or used.

To avoid disputes in trademark licensing in Vietnam, permission must be granted in writing.

What are the advantages of trademark licensing in Vietnam?

Trademark licensing in Vietnam could bring great advantages 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 

Forms of trademark licenses in Vietnam

Trademark licensing in Vietnam may take the following forms:

• Franchising
• Merchandising
• Brand extension
• Co-branding
• Components or ingredient branding
• Standards

What kinds of contracts exist for trademark licensing in Vietnam?

Licensing of trademark includes the following types: Exclusive contract, Non-exclusive contract, Sub-license contract.

-First, an exclusive contract is one in which the licensee has exclusive use of the licensed trademark within the scope and duration of the licensing agreement, while the licensor is prohibited from using the licensed trademark without the licensee's permission.

-Second, a non-exclusive contract is one in which the licensor retains the right to use the trademark and enter into a non-exclusive trademark license agreement with others within the scope and duration of the licensing agreement.

-Thirdly, trademark sub-license contract mean an agreement under which the licensor is a licensee of the option to utilize such brand name as per another agreement.

What is included in the Vietnam trademark licensing contract?

In a the agreements, having the accompanying contents is required: complete names and addresses of the licensor and of the licensee; reasons for licenses; type of contract; scope of licensing, including territorial and use right restrictions; contract duration price of a license; rights and responsibilities of the licensee and licensor. To deal with potential disputes that may arise between parties during the execution of trademark licensing in Vietnam, it is essential to establish regulations regarding the dispute resolution process for trademark licensing.

The parties must also consider the legality of this contract in addition to the aforementioned provisions. In contrast to assignment contracts for trademarks in Vietnam, where they must be registered at the National Office of Intellectual Property of Vietnam before they can take effect, licensing contracts for trademarks do not require such registration. When the licensor loses its trademark rights, the licensing agreement will automatically end.

Our Intellectual Property attorney can assist the client with any additional inquiries or requests for legal counsel regarding trademark licensing in Vietnam or a dispute in trademark licensing contract.