Intellectual Property Court will help paving the way for IP enforcement through litigation in Vietnam.
On 24 June 2024, Vietnam's National Assembly approved crucial amendments to the Law on the Organization of People's Court (LOPC). The amendments, comprising 9 chapters and 152 articles, set the stage for the creation of specialised courts, including dedicated Intellectual Property (IP) Courts. This legislative update aims to address the growing number of complex IP disputes in Vietnam, aligning with Vietnam's international commitments to enhance IP enforcement.
IP Court Establishment under the LOPC Amendments
The LOPC's amendments allow for the establishment of first-instance courts dedicated to specific types of cases, including IP disputes. Particularly:
- The Supreme People's Court will develop detailed proposals on the structure, location, and number of these specialised courts. To this end, delegates in the National Assembly's meeting suggested that initial specialized courts be located in major cities such as Hanoi, Da Nang, and Ho Chi Minh City.
- These proposals will be further reviewed and approved by the National Assembly Standing Committee, which will also define the jurisdictional scope of the new IP courts. There is some discussion around expanding the jurisdictional scope of the new IP Court to cover matters which are now under the domain of IP Vietnam, as Vietnam looks at IP Courts in neighbouring countries like Thailand and Indonesia for reference.
- The IP Court will handle IP disputes from their jurisdiction at the first-instance level. As the appellate proceedings will be referred to the respective High Court, there may also be an IP division there too.
Why This Matters for Vietnam
Currently, district courts and high courts in Vietnam handle a broad spectrum of cases without specialization, leading to challenges in providing adequate training for judges on specific subjects, such as IP law. This has often resulted in inconsistent rulings and prolonged case resolutions. A specialised IP Court will ensure that judges with the appropriate expertise handle these IP cases, leading to more consistent and sound judgments.
Amid the increasing volume and complexity of IP disputes in Vietnam, while the number of IP infringement cases brought to trial has substantially increased, this number remains modest compared to the total number of IP infringements handled. In 2023, there were 644 IP infringements handled by administrative sanctions, but only 16 criminal prosecutions concerning IP,1 and only a dozen IP disputes were resolved through litigation. This highlights the critical need for a specialized judicial body to address the increasing demand for effective IP adjudication.
Impact on IP Enforcement
The establishment of the IP Court is expected to streamline the resolution of IP disputes. It will provide a dedicated platform for litigating complex IP cases, potentially reducing the backlog and leading to quicker resolutions. This move is also seen as a step towards enhancing the professional capabilities of judges and court officials, ensuring they are well-versed in the nuances of IP law.
Moreover, having a specialized court could encourage more rights holders to pursue litigation, confident that their cases will be heard by judges who understand the intricacies of IP law. This could lead to a rise
in the number of IP cases brought before the courts, shifting some of the enforcement burden from administrative sanctions to judicial processes.
Aligning with International Commitments
The establishment of the IP Court also represents Vietnam's effort to implement its international commitments on IP rights protection imposed by new-generation Free Trade Agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EVFTA), and the Regional Comprehensive Economic Partnership (RCEP).
Looking Ahead
Preparations for the IP Court's establishment are already underway, particularly in Hanoi, where the appointment of judges is in progress. The IP Court is expected to be operational after 1 January 2025. The Supreme People's Court will oversee the establishment, ensuring a smooth transition to the new system.
As the Supreme People's Court progresses with the establishment of the new IP Court(s), we recommend that you should stay informed about the developments and corresponding implications to adapt your IP enforcement strategies to effectively engage with the new court system. We will continue to provide timely updates and insights into these changes.
Footnote
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