Protecting Intellectual Property Rights

Protecting Intellectual Property Rights - Why It Is Important for Vietnam

One of the most important parts of the U.S.-Vietnam Bilateral Trade Agreement (BTA) is the commitment of both countries to protect the intellectual property of the nationals and companies of the other. Providing adequate protection of the intellectual property rights of other countries' nationals and companies is also a core requirement for any country joining the World Trade Organization (WTO). The WTO's Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs) spells out the minimum necessary legal and enforcement standards WTO members must meet. In the BTA Vietnam has committed to meeting the basic standards of the TRIPs Agreement within two years.

Protecting IPR, however, is not something that countries do solely to meet their international obligations. Effective IPR protection is a critical requirement for any country to develop technologically-advanced industries and promote creativity and innovation. For example, developing countries have found that they cannot attract high-quality foreign investment if they do not have effective IPR protection. No major company wants to develop manufacturing, research or development operations in a country in which the IPR involved in that operation can be freely pirated without legal penalties. The information technology sector, including software development and manufacture of such things as computer chips, can develop only in an environment in which IPR is protected from theft. The success the U.S. has achieved in becoming the center of technology development, especially software development in places like "Silicon Valley" is in large part a product of the effect IPR protection that exists in the U.S. today.

IPR protection is also critical if a country is to encourage innovation and creativity among its people. Vietnamese companies are not likely to invest time and energy in writing computer software, for example, if that...