On the afternoon of September 23, the National Assembly Standing Committee deliberated on the bill amending and supplementing the Law on Intellectual Property. A key feature of the bill is the addition of aimed at facilitating the creation and commercial exploitation of objects of intellectual property rights, with a view to promoting innovation. Specifically, the State shall support the creation, establishment, exploitation, and management of intellectual property rights; as well as valuation, the adoption of IP transfer models, and mechanisms for sharing intellectual property rights.

Additionally, the bill accords priority to the acquisition of intellectual property rights to products that are critical to national security and socio-economic development; and it introduces policies to develop the intellectual property ecosystem, encouraging organizations and individuals to invest in start-up enterprises. The owner of intellectual property rights may  independently determine the value of such rights and establish a separate asset register for management, in cases where the asset’s value has not yet been recognized in the accounting books..

Minister of Science and Technology Nguyen Manh Hung emphasized that the objective of this amendment is to transform research outcomes into tradable assets. “Only by doing so can we build a strong market and make intellect a driver of development,” Minister Hung said.

Minister of Science and Technology Nguyen Manh Hung. Photo: National Assembly E-Portal.

The Minister believes that, under this bill, intellectual property rights can be valued, traded, and recognized as assets. The most important shift in intellectual property is the transition from a framework focused solely on rights protection to one emphasizing the assetization, commercialization and marketization of research results. Accordingly, intellectual property becomes a strategic competitive tool for enterprises and nations.

Currently, for developed countries, intangible assets and intellectual property account for as much 70-80% of total national assets. Minister Nguyen Manh Hung stressedthat Vietnam has reached the stage where it must prioritize the development of intellectual property to advance national development, making these assets a new driver of economic growth.

With respect to the drafting body’s concerns surrounding the provision on “owners self-determining the value” of intellectual property assets, the Minister stated that the valuation of intellectual property consists of two steps. First, the enterprise self-determines the value; for example, by reference to R&D (research and development) costs and records/ manages the IP as a separate asset for internal governance. Second, they obtain a valuation through an intermediary or advisory organization.

“Once valued by an intermediary organization, the asset may be traded. This is a practice is widely adopted internationally and will continue to be further clarified”, the Minister said.

Works created solely by AI will not be protected

Nguyen Thanh Hai, Chair of the Committee for Deputies’ Affairs, expressed serious concern that the bill has not yet incorporated policies recognizing ownership rights in products generated by Artificial Intelligence (AI). Meanwhile, many countries already have clear and specific legal policies to regulate and encourage the development of this sector.

“In the context of rapid digital transformation, amendments to the Intellectual Property Law must not be detached from that reality. We need a legal framework to promulgate implementing decrees and circulars on this matter,” she proposed.

Vice Chair of the National Assembly Nguyen Thi Thanh also observed that, in the current context of rapid development and widespread application of AI, the Government needs to determine whether it is necessary to recognize intellectual property rights in products generated by AI. The drafting body needs to clarify this matter.

Minister Nguyen Manh Hung stated that the use of publicly available information on the internet for AI training is a very “hot” topic worldwide. AI uses information to reason and to generate new outputs. This process is analogous to how humans read books or publicly available articles online, reflect on them, form new understandings, and apply such insights in their work for development.

Regarding AI-generated works, the Minister emphasized the need to draw clear distinctions. Works generated autonomously by AI, without human involvement are not eligible for protection. By contrast, works created by humans using AI as a tool are eligible for protection. This principle is consistent with the approach adopted by most countries at present. In the period ahead, the Ministry will conduct research and draft a Law on Artificial Intelligence to establish a clear legal framework and comprehensively regulate this matter.

According to the plan, the bill amending and supplementing the Intellectual Property Law will be submitted to the National Assembly for consideration and adoption at its 10th session later this year.

Son Ha