In the trend of economic integration, enterprises are encouraged to register for the protection of intellectual property (IP) rights when being engaged in production and business. However, for many reasons, many businesses are not fully aware of the potential of IP rights in their development process.

Illustrative image. (Photo: DNO)

Intellectual property supports product development

Established in 2013, the Da Nang Light Concrete JSC located on Ton Duc Thang Street, Lien Chieu District specialises in the production of commercial lightweight concrete mixes such as self-inserting bricks, high-strength curbs and unburnt bricks. 

On November 29, the company was recognised as a science and technology enterprise by the municipal Department of Science and Technology with two product lines formed from scientific and technological results, namely concrete bricks and curbs with high power named E-Brick. Currently, the company is applying for the protection of IP rights with two other products which are garbage screens and the method of producing garbage screens.

Mr. Mai Trieu Quang, the company’s Director said that the first benefit when registering IP rights for industrial products is to enjoy some incentives from the State on corporate income tax, thereby helping his business access preferential loans. Another advantage is to help spur the marketing and the identification of products.

According to Mr. Quang, the brand is an effective marketing tool for businesses, with the different positioning, will help businesses access the market better.

In addition, the brand also supports an expansion policy, making the product distribution process turn easier. Because of an obvious fact, when buying, customers will feel secure about goods with names or brands that they knew before.  “In particular, among the advantages that intellectual property brings to businesses must include the protection of the State, competent authorities and the law in the matter of restricting and combating competitors from stealing intellectual property”, said Mr. Quang.

According to updated data from the national IP authority, in June 2022, 3,998 diplomas, including 3,801 trademarks, 67 inventions and utility solutions, and 130 industrial designs were granted to Da Nang businesses. Among intellectual property factors, the design of trademark, industry and trade name has the most obvious impact.

Perfecting mechanisms and policies in support for businesses

As reported by the Department of Science and Technology, in December 2021, the city's advisory department issued two important documents on IP development process by 2030 and stipulating the level of support for registration of IP protection till 2030 in the city, respectively. For these encouraging facts, the city has supported the registration of IP protection for 6 enterprises and 3 inventors with a total budget of VND 240 million.

In fact, IP right protection is one of the essential issues of every business before bringing ideas and products to the market to protect and improve the value of products.
Currently, businesses are starting to pay more attention to the protection of IP assets. However, the number of applications for protection is still limited, mainly for trademarks whilst inventions and utility solutions registration rate is still low.

According to Ms. Le Thi Thuc, the Head of Technology Management Division under the municipal Department of Science and Technology, the cause of this situation is that most enterprises, especially small and medium-sized enterprises,  usually focus more on product development and calling for investment capital, advertising and sales rather than paying more heed on the protection of IP rights.

The Da Nang Department of Science and Technology has, over recent years, got actively engaged in promoting the protection of intellectual property (IP) rights. There’s no denying that IP plays an important role in ensuring a healthy legal environment, protecting creative and technical results, and ensuring quality goods of clear origin, thereby helping to add value to products and services, and increasing intangible assets that businesses hold. Indeed, protections of IP instill competition in the industry to produce best products and services that benefits the society to grow.

In the coming time, Da Nang will attach importance to ensuring the four main pillars of development cycle of IP assets: creating (creativity), protecting and using (commercialization), and enforcing of IP rights.
In particular, it is highly recommended that organisations and individuals operating startup projects focus on IP registration, especially in the early stages of a startup journey.

The priority should be given to startup projects which demonstrate the rapid growth, directly serve the city's socio-economic development, and have a high competitive advantage, plus those wining high awards at municipal, regional and national-level startup competitions.

Reporting by MAI QUE - Translating by A.THU