Anti counterfeiting - industry activity in Cambodia

Cambodia’s Intellectual Property Rights forum 2018, a conference on IP protection took place last month. Driven by European companies facing fake and parallel imports the aim was to discuss product issues relating to public health/safety and foreign investment.  Industries identified as affected include pharmaceutical, automotive and food and beverages. A large household goods company said that illegal products hurt their bottom line by 15-20% per year. A beverages company expressed concerns about smuggled or parallel products imported from Thailand. A pharma company said that parallel imports were the major threat. Lost taxes were repeatedly cited. Cambodia has a well-documented smuggling problem which contributes to the market distortions in the region. As a result counterfeiting can become a little lost in the issue of parallel imports.

Mr Op Rady, director of the IP Office in the Ministry of Commerce, explained some of the challenges: low IP awareness; limited resources and low official budgets. The Counter Counterfeit Committee of Cambodia advocated for better cooperation, information sharing and product/brand training. They provided examples of pharma and cosmetics actions they took in the last year.

Cambodia is turning its attention to the issue of fake goods. The country’s parallel goods and other problems are also significant.

Cambodian trademark fees and timeframes

A new set of regulations relating to trademark office matters in Cambodia took effect in early 2018.

 

Trademark office fees for 2018 are rising. Most are inflation level rises in the single digits. However there are several more significant changes.  One is that fees for international Madrid registrations have been set for the first time. Cambodia which joined in 2015 has now completed implementation and so can operate as an as office of origin for a Madrid international application.  The first Madrid application filed has been filed by a Cambodian national, but has not yet been published. 

 

Filing fees have been set for the first time for collective marks, certification marks and GIs. Cambodia has just registered its first certification mark MALYS ANGKOR for premium rice.  Of the regular trademark office fees the opposition fees see the largest increases. 

There are also rules relating to timeframes - applications are due to complete within 6-9 months, an improvement on the current 1 year.
          

 

 

 

 

 

 

Cambodian government logo disputes

Cambodia’s government is wading into trademark disputes. Two finance institutions Acleda Bank and Prasac Microfinance have been asked to change their logos to differentiate them from state institutions. Prime Minister Hun Sen himself has threatened Prasec, the largest microfinance institution in the country. He indicated the central bank required it and threatened to withdraw their trade licences if they failed to comply.

 

The logic is that the logos are too similar the Ministry of Economy and Finance’s logos and “If people start believing that these institutions belong to the government, then they think they don’t need to pay back their debts, which is very detrimental to the industry,” has said Chea Serey, the director-general of the National Bank of Cambodia. Some have questioned why this is such a big issue, suggesting it is a way to emphasize borrower obligations obliquely. Both institutions face a multimillion USD bill for the change which impacts signage at hundreds of branches and replacing bank cards and documents, apart from the advertising and marketing costs of the rebrands.  

Cambodia IP news

Cambodia rarely features in IP news but a number of recent events have started to attract attention. Firstly Cambodia acceded to the PCT, the 151st nation to do so. The PCT will enter into force in Cambodia on December 8, 2016.

Meanwhile in July the Intellectual Property Association of Cambodia (“IPAC”) started operations. It mainly comprises IP professionals and plans to run IP training and seminars, raise awareness and cooperate with relevant government Ministries on IP.

Cambodia already has a full suite of IP laws, but in August the Minister of Commerce presided over a meeting of Committee on Management and Advancement of Trade Related Draft Laws and Regulations to look at possible updates. The laws of most relevance to IP holders they are reviewing include the Draft Law on Consumer Protection, the Draft Law on Competition and Draft Law on Ecommerce.

Lastly a well-known local IP figure, Var Roth San, an adviser to the Ministry of Commerce, has spoken to the press indicating that Cambodian firms need to establish their own brands to compete globally.

 

Cambodia IP news

Cambodia rarely features in IP news but a number of recent events have started to attract attention. Firstly Cambodia acceded to the PCT, the 151st nation to do so. The PCT will enter into force in Cambodia on December 8, 2016.

Meanwhile in July the Intellectual Property Association of Cambodia (“IPAC”) started operations. It mainly comprises IP professionals and plans to run IP training and seminars, raise awareness and cooperate with relevant government Ministries on IP.

Cambodia already has a full suite of IP laws, but in August the Minister of Commerce presided over a meeting of Committee on Management and Advancement of Trade Related Draft Laws and Regulations to look at possible updates. The laws of most relevance to IP holders they are reviewing include the Draft Law on Consumer Protection, the Draft Law on Competition and Draft Law on Ecommerce.

Lastly a well-known local IP figure, Var Roth San, an adviser to the Ministry of Commerce, has spoken to the press indicating that Cambodian firms need to establish their own brands to compete globally.

 

Cambodia joins Madrid

Cambodia has announced that it is joining the Madrid Agreement. Cambodia said on 5th March that its Commerce Ministry had submitted an Instrument of Accession to WIPO. Applications can designate Cambodia after 5th June.

Cambodia joins Vietnam, Philippines and  and Singapore of the 10 ASEAN countries that are now Madrid members. All ASEAN countries are due to join as part of their formation of the ASEAN Economic Community.