WHY IS IT NECESSARY TO PROTECT TRADE NAMES?

Trade names are used by businesses to distinguish their goods and services in the highly competitive environment of today's commercial market. Moreover, they are used to separate between different brands and to avoid trade name theft. Therefore, businesses are very interested in protecting trade names as well as legal regulations on trade name protection. This article will help you understand more about this issue.

Picture 1I. What is Trade Name Protection?

Pursuant to Clause 21, Article 4 of the Intellectual Property Law 2005, a trade name is defined as a name used by an organization or individual in business activities to distinguish the business entity with that name from other business entities in the same sectors and business areas.

Therefore, the use of trade names in business activities is for commercial purposes and is presented on transaction documents, signs, products, goods, packaging, and means of providing services, advertising, etc.

Trade name protection means the registration of trade names by businesses to distinguish themselves from other businesses in the same sector and business area, helping businesses to have a sustainable market and prevent trade name theft or helping people recognize the brands.

II. Why is Trade Name Protection Necessary?

According to Article 76 of the Intellectual Property Law 2005, there is a general condition for trade names to be protected as follows: Trade names will be protected if they are capable of distinguishing the business entities with those trade names from other business entities in the same sectors and business areas.

Moreover, trade name protection prevents acts of infringement and unfair competition by others according to Article 130 of the Intellectual Property Law 2005, such as registering and holding the rights to use, or using domain names that are too identical or similar to be confused with the protected trade names of other persons without the right to use them with the purpose of holding the domain names, taking advantage of them or damaging the reputations and prestige of the trade names.

III. How is Trade Name Protection regulated?

- According to Clause 6, Article 124 of the Intellectual Property Law 2005, the use of trade names is the act of using them for commercial purposes by:

+ Using the trade names to identify oneself in business activities;

+ Presenting the trade names on transaction documents, signs, products, goods, packaging, and means of providing services, and advertising.

- The scope of the rights to trade names according to Clause 2, Article 16 of Decree 103/2006/ND-CP is determined based on the scope of protection of the trade names, including the trade names, business sectors, and business territories in which the trade names are used by the owners of the trade names in a legal manner.

- Clause 2, Article 129 of the Intellectual Property Law 2005 stipulates that any act of using trade indications that are identical or similar to the trade names of other persons that have been used before for the same kind of products or services or for products or services that are too similar to confuse about the business entities, business establishments, and business activities under those trade names, is considered infringements of the rights to the trade names.

Picture 2IV. What are the conditions for Trade Name Protection?

Pursuant to Articles 76 and 78 of the Intellectual Property Law 2005, the conditions for trade name protection are as follows:

- Trade names will be protected if they are capable of distinguishing the business entities with those trade names from other business entities in the same sectors and business areas.

- A trade name is considered distinctive if it satisfies the following conditions:

+ Containing personal name components, except in cases where it has become widely known due to use;

+ Not being too identical or similar to be confused with a trade name that another person has used before in the same sectors and business areas;

+ Not being too identical or similar to be confused with a trademark of another person or with a geographical indication protected before the date that trade name is used.

However, the subjects are not eligible for protection as trade names under Article 77 of the Intellectual Property Law 2005, as follows:

+ Names of state agencies;

+ Names of political organizations, socio-political organizations, socio-political-professional organizations, social organizations, and socio-professional organizations;

+ Names of other entities not related to business activities.

V. Procedures for Trade Name Protection registration

According to Article 76 of the Intellectual Property Law 2005 and Clause 3, Article 6 of Decree 103/2006/ND-CP guiding the Intellectual Property Law on Industrial Property, trade names do not need to be registered for protection, but trade names that comply with the regulations will be automatically protected.

1. Objects Not Protected as Trade Names

Objects not protected as trade names under Article 77 of the Intellectual Property Law 2005 include:

- Names of state agencies;

- Names of political organizations, socio-political organizations, socio-political-professional organizations, social organizations, and socio-professional organizations;

- Names of other entities not related to business activities.

2. What is the  duration of protection for trade names?

According to Clause 3, Article 6 of Decree 103/2006/ND-CP, the industrial property rights to trade names are established on the basis of the actual legal use of those trade names corresponding to the areas (territories) and business sectors without the need for registration procedures.

Therefore, it can be understood that trade names are objects of industrial property rights and there are no regulations on the duration of protection for trade names.

Picture 33. Where to register for trade name protection?

Businesses do not need to register for trade name protection because trade names are already protected by Law.

4. When are  the industrial property rights to trade names protected?

The rights to trade names are established on the basis of the legal use of the trade names without the need to register those trade names with the Intellectual Property Office.

According to Clause 2, Article 121 and Clause 5, Article 124 of the Intellectual Property Law 2005, once the legal ownership of the industrial property rights to trade names, the owners will have the right to use the trade names for business purposes by using the trade names to identify itself in all business activities, presenting the trade names on documents such as transactions, products, goods, packaging, advertising, etc.

However, Clause 1, Article 141 of the Intellectual Property Law 2005 also stipulates that the rights to use trade names cannot be transferred. The rights to transfer trade names under contracts or inheritances to other persons are being complemented together with the entire business establishments and business activities under those trade names.

The above is information about trade name protection. For supporting and learning more about the information and legal regulations on trade name protection, you can contact NPLaw to be consulted and supported specifically on legal issues as quickly as possible.

Ngoc Phu Law Company Limited - NPLaw 

Hotline: 0913449968

Email: legal@nplaw.vn


CÔNG TY LUẬT TNHH NGỌC PHÚ

Customer service: 19009343

Hotline: 0913 41 99 96

Email: legal@nplaw.vn

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