Start-ups urged to prioritize intellectual property protection and enforcement

In the context of digital transformation, intellectual property (IP) is becoming increasingly important as innovation accelerates and products can spread quickly but are also more vulnerable to copying, unauthorized use or being registered by others first.

Dong Nai businesses showcase and promote their products at a trade fair in the city. Photo: Hai Quan

For start-ups, IP-related risks can be even greater as they often grow rapidly while having limited legal governance capacity or failing to pay due attention to their intellectual assets.

Managing intellectual assets from the outset

According to experts, to promote the value of IP and reduce legal risks in the digital age, businesses, particularly start-ups and small and medium-sized enterprises (SMEs), need to shift from a “register when necessary” mindset to “governing intellectual assets from the outset”. IP should be integrated into business and technology strategies, as well as data management and market development.

Effective governance of intellectual assets can give businesses an edge in competition, fundraising, technology transfer, exports and international integration. Conversely, neglecting IP can result in the loss of assets, brands or markets, or expose businesses to legal disputes.

Assoc. Prof. Dr. Tu Diep Cong Thanh, Director of the Intellectual Property and Technology Transfer Center at Vietnam National University Ho Chi Minh City, said many start-ups currently focus mainly on products, fundraising and growth but have yet to register their trademarks or clearly establish ownership of source code, data, algorithms, designs and the respective contributions of co-founders, employees and freelancers. When raising capital or entering into strategic partnerships, unclear ownership of intellectual assets can lead to lower valuations, delays in transactions or missed investment opportunities. Therefore, businesses need to view IP as part of an intellectual asset governance system rather than simply as a registration procedure.

Deputy Director of the Department of Science and Technology (DoST) Vo Hoang Khai said that to safeguard IP and develop brands in the digital age, local businesses, including start-ups, should focus on three key areas.

First, they should proactively seek IP protection at an early stage for trademarks, industrial designs, patents, copyrights and domain names to protect their brands and reduce legal risks in business operations.

 They should also focus on building their brands based on product quality, production standards, traceability, digital transformation and market reputation. In today's business environment, a brand is a core source of competitive value.

 At the same time, businesses need to pay greater attention to intellectual asset governance, particularly data, trade secrets and digital assets, as well as compliance with IP-related  regulations in promotional activities, e-commerce and other business operations.

Linking IP with business strategies

Amid economic integration and digital transformation, IP is becoming one of the key factors determining the competitiveness and sustainable development of businesses, particularly SMEs and start-ups.

A booth displaying start-up and innovation products at an innovation workshop in Dong Nai.

Therefore, businesses need to identify all their intellectual assets, including trademarks, patents, industrial designs, software, data, algorithms, trade secrets, technical processes and digital content. Only by properly identifying these assets can businesses determine which ones should be registered, which should be kept confidential and which can be commercially exploited.

Nguyen Ngoc Tuan, a member of the city's Innovation and Entrepreneurship Council and Director of Nai House Co., Ltd. in Long Binh Ward, said many local start-ups and businesses have become more aware of basic IP issues. However, as science and technology and e-commerce continue to advance, businesses need to deepen their understanding of IP to strengthen their products and brands while reducing the risks of copyright disputes and other legal conflicts involving intellectual assets.

In addition to investing in and developing their brands, logos and slogans, start-ups and other businesses should also pay attention to registering website domain names, particularly “.vn” domains, as well as protecting their IP on digital platforms and in e-commerce.

Assoc. Prof. Dr. Tu Diep Cong Thanh added that in the digital age, IP is not only a legal protection tool but also a strategic asset that can help businesses enhance their value and competitiveness while supporting sustainable development. Therefore, businesses in general and start-ups in particular need to establish their IP rights in a timely manner, with the appropriate scope and in the relevant markets. Important IP assets should be searched, assessed and registered at an early stage, especially before products are disclosed to the public, capital is raised, technology is transferred or products are exported.

Businesses also need to manage IP rights internally and with their partners, clearly defining ownership of products created by employees, collaborators, contractors or software developers. At the same time, they must control the risk of infringing others' rights when using software, images, data, source code, designs or technologies, while protecting trade secrets and data through appropriate security measures.

Deputy Director of the DoST Vo Hoang Khai stressed that in the coming period, the department will step up support for research institutes, universities and innovative start-ups in creating, protecting and commercializing intellectual assets. This is expected to contribute to strengthening the city's innovation ecosystem and improving its innovation index.

By H.Quan – Translated by M.Nguyet, Thu Ha