Solutions for enterprises that re-apply for trademarks in Vietnam and terminate trademark rights due to non-use of alcoholic beverage trademarks

Reapply for a trademark in Vietnam
——Solution for enterprises to terminate trademark rights due to non-use of alcoholic beverage trademarks

Vietnam has a population of nearly 100 million. In 2021, Vietnam consumed 4.159 million liters of alcoholic beverages, becoming the ninth largest alcohol consumer in the world. This high level of consumption has brought huge profits to beverage companies. In 2022, the revenue of the largest beer manufacturer exceeded VND35.325 trillion, or approximately US$1.506 billion.

However, fierce competition between brands has resulted in a brutal marketing war, making protecting trademarks a vital priority.

Vietnamese Intellectual Property Law stipulates that if the trademark owner or licensee has not used the trademark without justifiable reasons for 5 consecutive years before requesting to terminate the validity, the validity of the trademark registration will be terminated at the request of a third party, but at least 3 years before the request for termination, the validity of the trademark registration will be terminated. Except for those who start or resume use after 6 months.

The Vietnamese government has issued strict regulations on alcohol advertising and sales. Currently, trading in alcoholic beverages is a conditional business subject to government restrictions. Importing alcohol into the Vietnamese market is a time-consuming process that can take several years due to the rigorous and complex procedures involved. Secondly, the trademark owner may not have the right conditions to launch the product in the Vietnamese market, so the trademark rights may not be immediately enforceable in Vietnam.

Vietnam’s alcoholic beverage market is highly competitive, with both domestic and imported alcoholic brands vying for market share. Consumers also show preference for branded products. This directly leads to the occurrence of trademark theft and unfair use of competitors’ trademarks. Therefore, trademarks in Vietnam will face the following situations:
——The trademark has been misappropriated by others;
——Wasting a lot of time getting involved in legal proceedings;

As a result, the trademark owner's business plans will be greatly affected.

One of the solutions: Trademark tracking to prevent unexpected events

If sufficient evidence of use of the trademark in Vietnam cannot be provided and there is no valid reason for not using the trademark for up to 4 years (from the date of registration or the date of last use of the trademark in Vietnam), the trademark owner is advised to resubmit a new Trademark application.