Fighting Fake and Imitated Products: An Urgent Need

Fighting Fake and Imitated Products: An Urgent Need

In a conversation with enterprises held recently, Vice Chairman Nguyen Thien Nhan of HCMC People’s Committee reaffirmed the position against imitation products.

Alarming situation

In recent years, while the Vietnamese economy has rapidly grown and started integrating into the world economy, the production and trade of imitation products has also expanded and become more entrenched.  Almost all products have been faked or imitated violating intellectual property rights, ranging from match boxes, pens, foods, drinks, garments, home utensils, medicines to construction materials, steel, cement, and even sophisticated products such as motorbikes and electronics. Fake and imitated products not only flood major cities like HCMC and Hanoi but also reach remote rural areas. If in the past most of them were made in Vietnam, they are now mainly produced in and imported from neighbouring countries.

According to Mr. Tran Viet Hung, Deputy Head of the HCMC Department of Intellectual Property, in the past three years, there were about 1,500 reported violations of intellectual property involving fake products with 252 units fined. In 1996-2004, the Cultural and Information Service has confiscated and destroyed some 3 million CDs and nearly 800,000 violating products. Hundreds of violations were prosecuted. In the past four years, the Customs Office has dealt with almost 400 cases of illegal imports. For its part, the Department of Intellectual Property received an average of 400 complaints a year in the past two years (compared with 50 complaints in 1994).

Challenges and solutions

Fake and imitation products are detrimental to the interests of bona-fide entrepreneurs, damaging their trademarks and market share. These products can also harm the health of consumers, negatively affect foreign investment and hinder Vietnam’s participation in international institutions especially WTO. Therefore the fight against these products is most pressing, with both government and enterprises needing to shoulder responsibility. Relevant authorities must perfect the legal framework in line with WTO criteria and increase the powers of law enforcement bodies. On their part, enterprises must register their intellectual property to protect against further violations. Both sides must co-operate fully in the common fight.

Determination

HCMC businesses welcomed the determination of the People’s Committee. Mr. Nguyen Thien Nhan disclosed that the city will apply a specific model for each sector. Distributors and agents must be fully committed and heavy fines should be applied for violations. The fight will be carried out district by district and focus first on the most serious violations. Mr. Nhan pointed out that without economic incentives and application of the law of market economy, the fight would be in vain. He also called on the co-operation of enterprises and their contribution to the fund for the fight.

• Truong Cong Ly