March 4, 2021
Vietnam has become a big player in the global fashion industry. Garments made in Vietnam now appear all over the world, especially in the U.S. and the EU. In this value chain, however, Vietnamese companies usually play the role of garment processors, fulfilling the orders of big brands for immediate export purposes. While the goods bearing the registered marks are made in Vietnam by local companies, the brand owners are often overseas or global corporations.
As a brand owner can lose protection of its mark in Vietnam due to non-use, this situation leads to the question of what constitutes “use” of a mark when the mark-bearing goods are processed for export only, and not sold in the Vietnam market.
Article 124.5 of Vietnam’s IP Law provides that:
Use of a mark means the performance of the following acts:
Affixing the protected mark on goods, packaging, business facilities, means of service provision, or transaction documents in business activities;
Circulating, offering, advertising, or stocking for sale goods bearing the protected mark;
Importing goods or services bearing the protected mark.
At first glance, the above provision seems quite clear. While importing goods appears on the list, exporting goods is conspicuously absent, and therefore it is not an act of use.
However, it is also clear that for the purpose of exporting, a product should go through a manufacturing or processing stage in which the mark will be physically affixed to the product or its packaging. For fashion goods, this could be in the form of a removable tag or package, a tag sewn onto the item, or a fundamental part of the garment’s design (such as a T-shirt emblazoned with a brand name, or a shoe featuring a distinctive logo). Then, the question becomes whether this act of affixing the mark on the goods or packaging in the manufacturing process