Compulsory Licensing & New Grounds for Patent Invalidation in Vietnam

Category: Patent Strategy

Compulsory Licensing & New Grounds for Patent Invalidation in Vietnam

Sources:

  • Amendments to Vietnam’s IP Laws to take effect on 1 Jan 2023 (CMS LawNow)

Introduction While Vietnam has made it easier to get a patent, the new laws have also made it easier for competitors to attack one. The recent amendments introduced expanded grounds for invalidating patents, a move that aligns Vietnam with international standards but introduces new risks for patent holders.

New Attack Vectors Under the updated law, a patent can now be invalidated if the applicant failed to disclose the origin of genetic resources or traditional knowledge used in the invention. This is a massive shift for biotech and pharmaceutical companies, who must now trace and declare the source of every biological component. Additionally, “Bad Faith” has been codified as a specific ground for opposition and invalidation, targeting squatters who file patents solely to block legitimate innovators.

The Threat of Compulsory Licensing Perhaps most critically for the pharmaceutical sector, the new law clarifies the grounds for “Compulsory Licensing.” The government can now force a patent holder to license their invention to meet the needs of importing countries for disease treatment, aligning with international treaties. This creates a complex strategic environment where holding a patent is not an absolute monopoly if public health is at stake.

Defending Your Rights Navigating these new invalidation grounds requires a defensive filing strategy. Applications must be “bulletproofed” against claims of insufficient disclosure or bad faith before they are even filed.

How ASEAN IPR Helps: We specialize in defensive patent drafting. ASEAN IPR conducts thorough pre-filing audits to ensure all genetic resource disclosures are compliant with the new Vietnamese regulations. If you are facing a bad faith competitor, we utilize these new invalidation grounds to aggressively clear the market of squatters blocking your business.

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