Vietnam: Patent infringers cannot use cancellation requests as a delay tactic

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Vietnam: Patent infringers cannot use cancellation requests as a delay tactic

Sponsored by

tillekegibbins.png
CANCEL

While Vietnam, like the rest of the world, has been focusing on fighting the COVID-19 pandemic, the Vietnamese courts have quietly recorded new milestones in the judgment of patent cases. One of those milestones came on March 12 2020, in a decision on appeal settlement issued by the Superior People's Court of Ho Chi Minh City against a provincial court's decision on suspension of a patent case.

A simple case

The circumstances of the case resulting in the Superior Court's decision were relatively simple. The plaintiff, a US-based multinational drug company, holds a compound patent in the pharmaceutical field. The defendant manufactured medicinal products containing such compound. After sending a warning letter and receiving no cooperation, the plaintiff initiated a lawsuit against the defendant at the People's Court of Ben Tre Province in the Mekong Delta, where the defendant is headquartered. The defendant immediately filed a request at the Intellectual Property Office of Vietnam (the country's patent-issuing agency) for cancellation of the patent in question, and requested the court to suspend the trial of the case until the IP Office issued a decision on the cancellation.

The defendant's filing of a cancellation request, and using it as grounds to ask the court to suspend the infringement case, is a tactic that has been widely used in patent disputes in Vietnam in recent years. It is not difficult to see that the practical purpose of this tactic is simply to extend the trial period of the case, making the case "clinically dead" when the proceedings are frozen indefinitely. This is because the process for resolving a request for cancellation depends entirely on the IP Office, which is not subject to any time constraints in correlation with the case accepted by the court. Meanwhile, the defendant can continue to manufacture and profit from patent-infringing products. In a number of cases, the process of resolving the cancellation request ends right at the time the patent expires, so when the judgment is announced, it is greatly reduced in meaning.

Dissatisfied with this situation, the plaintiff, as soon as the People's Court of Ben Tre Province decided to suspend the case on November 4 2019, appealed the decision to the higher court in Ho Chi Minh City, requesting the Ben Tre Court to continue hearing the case, independent of the resolution process at the IP Office. It should be noted that only the issuing agency (the IP Office) is authorised to consider canceling a patent in Vietnam, not the court.

The important legal question

Does the lower court have the right (or obligation) to decide to suspend a case until the matter of the patent's validity has been resolved? The legal consequences relating to the answer to this question are clear.

If the answer is yes, it will create a situation where every time the validity of a patent is considered in a lawsuit, the trial process will no longer be in the hands of the court, but in the hands of the IP Office instead. As a result, the patent infringement lawsuit will be divided into two cases – the case relating to the patent's validity, to be resolved first, and the case of patent infringement, to be resolved later.

If the answer is no, the court will have the independent right to try the case, as inherently required by law, without waiting for the IP Office's resolution of the patent validity issue.

A reasonable resolution

In the end, the Superior Court issued a response that was like a knot being untied for the plaintiff and other rights holders. According to the Superior Court, the court initially has the right to issue a decision on suspension of a case in order to check with the IP Office about the authenticity of the process of considering the patent's validity. However, after receiving the IP Office's response, even if that response is purely a status update or a confirmation that a request for cancellation has been filed, the court may not continue the suspension on the grounds that the validity issue itself remains unresolved. As such, the court has to resume the process and the case will continue to be tried as usual.

Immediately after the decision issued by the Superior Court, the case was transferred to the lower court and the lower court had to make a decision to continue the trial of the case.

It is hoped by practitioners that the positive effect of this decision issued by the Superior People's Court in Ho Chi Minh City will spread to many other provincial and city courts in similar cases.

Le Xuan Loc

more from across site and SHARED ros bottom lb

More from across our site

New role for the High Court judge will leave a gap for an IP specialist judge at the first instance
Laura Achával, founder of Achával IP in Argentina, shares how an evolving vision led her to launch her own practice
Monetisation is standing at the forefront of patent development, and one firm says AI is increasingly being deployed
Data centres are being built across the US, prompting patent disputes, but Texas’s thriving tech industry and patent-ready courts make the state particularly ‘ripe’ for litigation
Carpmaels & Ransford is set to bolster its UK attorney team with the appointment of Simmons & Simmons’s head of IP in the UK
Updates on Nokia’s licensing strides and a surge in patent activity around battery recycling in Australia were also among the top talking points
To mark International Day Against Child Labour, Matteo Amerio at Corsearch says the people inside businesses who can identify counterfeiting risks must be given the tools and authority to act
With genuine equity at IP firms becoming rarer, securing partnership is harder than ever, but increased transparency is also making climbing the ladder more predictable
Yossi Sivan explains how Israeli judgment is a pro-brand owner departure from the norm and why it sends a strong message that corporate structures are not always a shield
Halim Shehadeh, group CEO of IP firm CWB, says that in the rush to discuss what AI can do, IP firms are overlooking the more important question of whether they are ready
Gift this article