Intellectual property rights in M&A transactions

Intellectual property has increasingly become one of the key assets considered by parties in mergers and acquisitions (M&A), particularly in technology and entertainment companies, where the core business lies in intangible assets. 

1. Categories of intellectual property rights 

Under Vietnamese law, intellectual property rights refer to the rights of individuals or organizations over their intellectual assets. These include copyright, related rights, and industrial property rights.⁸ Specifically, industrial property rights cover trademarks, industrial designs, inventions, utility solutions, layout designs of integrated circuits, plant variety rights, geographical indications, etc. 

2. Key considerations regarding intellectual property rights 

2.1. Grounds for establishment of intellectual property rights 

Copyright arises automatically upon the work being fixed in a tangible form.⁹ It is protected in all member states of the Berne Convention regardless of registration. In contrast, industrial property rights are established based on the issuance of protection titles by competent authorities following registration procedures in a specific country.¹⁰ Protection is only granted within the territory where the rights are registered. 

It is important for the parties to note that industrial property rights are established only from the date the protection certificate is granted, not the filing date. In cases where the industrial property object is still under examination, such rights have not yet been legally protected. 

2.2. Legal term of protection of intellectual property rights  

The validity of intellectual property rights is a necessary condition for the transaction to proceed. Copyright protection is generally long – term and varies by type of work. For example, cinematographic works are protected for 75 years from first publication, and computer programs are protected during the author’s lifetime and for 50 years thereafter.¹¹ In contrast, industrial property rights are subject to shorter protection periods and require periodic renewal. Specifically:¹² 

1. Trademark registration certificates are valid for 10 years from the filing date and may be renewed indefinitely in 10-year increments. 
2. Industrial design registration certificate is valid for 5 years from the filing date and may be renewed twice, each for an additional 5 years. 
3. Patents registration certificate are valid for 20 years from the filing date. 
4. Utility solution registration certificate are valid for 10 years from the filing date. 

During legal due diligence, parties may verify the validity of industrial property rights via the website of the Intellectual Property Office of Vietnam (IP Viet Nam) or the IP Data and Service Platform of the Intellectual Property Science Institute (IPPLATFORM.GOV.VN). However, information regarding works protected by copyright is not publicly disclosed and registration is not mandatory. Thus, parties must carefully examine related documentation (including the Certificate of Copyright Registration, if available). 

2.3. Lawful ownership of intellectual property rights 

The buyer must conduct thorough due diligence on documentation evidencing ownership of intellectual property assets in the transaction. Verifying ownership of copyright may be more challenging than verifying industrial property ownership, as copyright registration is not mandatory. In such cases, the purchaser should request full documentation demonstrating the creation process and any transfers to third parties (if applicable). It is also important to note that copyright ownership includes both the legal owner and the author. Authors retain moral rights over their works even after the work is transferred to a third party, except for the right of publication, which may be transferred.¹³ 

Ownership verification for industrial property is generally more straightforward, as information about applications, protection titles, and other records is available through competent authorities. 

2.4. Assignment or licensing of intellectual property rights 

The assignment or licensing of intellectual property rights is a critical step in transferring lawful ownership or usage rights to the purchaser. Contracts for the assignment of industrial property rights and contracts for the use of industrial property objects must be registered with the Intellectual Property Office of Vietnam to be legally enforceable against third parties, except for trademark licensing agreements.¹⁴ 

Owner must also consider legal restrictions on the assignment of industrial property rights under Article 139 of the Law on Intellectual Property and restrictions on the licensing of industrial property objects under Article 142 of Law on Intellectual Property. 

(8) Article 4.1 Law on Intellectual Property amending and supplementing in 2009, 2020 and 2022. 

(9) Article 6.1 Law on Intellectual Property amending and supplementing in 2009, 2020 and 2022.

(10) Article 6.3 Law on Intellectual Property amending and supplementing in 2009, 2020 and 2022.

(11) Article 27.2 Law on Intellectual Property amending and supplementing in 2009, 2020 and 2022.

(12) Article 93 Law on Intellectual Property amending and supplementing in 2009, 2020 and 2022.

(13) Article 45.2 Law on Intellectual Property amending and supplementing in 2009, 2020 and 2022.

(14) Article 148.1 và Article 148.3 Law on Intellectual Property amending and supplementing in 2009, 2020 and 2022.

Date Written: 20/07/2025

Share: