SKYS
Lawyers


The Kingdom of
Cambodia -
A New Century,
Renewed Hope,
A New Law




























SKYS
Lawyers


The Kingdom of
Cambodia -
A New Century,
Renewed Hope,
A New Law




























SKYS
Lawyers


The Kingdom of
Cambodia -
A New Century,
Renewed Hope,
A New Law

The Kingdom of Cambodia - A New Century, Renewed Hope, A New Law
Intellectual Property Practice

Barry Yen

 

Background - "Darkness to Dawn"
New Law
Registration
Registrability
Examination
Oppositions
Registration and Rights
Renewal
Cancellation
Licenses
Customs
Court
Remedies
Corruption
Trade Names
Unfair Competition

 

Background - "Darkness to Dawn"

In the June 1992 edition of Trademark World I highlighted the horrific tragedy inflicted on Cambodians in the late 1970's by the Khmer Rouge led by Pol Pot.  The United Nations brought hope to the country by assisting to arrange and supervise a democratic election in 1993.  Following the 1993 elections the two main parties lead by Mr Hun Sen (Cambodia People's Party) and Prince Ranarridh (FUNCINPEC party) shared one term of power as joint Prime Ministers.  Mr Hun Sen has been the Prime Minister in a coalition government since November 1998. Prince Ranariddh is President of the National Assembly. Although the Kingdom of Cambodia faces serious challenges the overall direction is positive.

Cambodia participates in a number of international organizations including ASEAN, FAO, ILO, IMF, UN, UNESCO, WHO and WIPO. The Kingdom is also in the process of applying to join the WTO.

The legal system is comprised of a mixture of Civil Law Codes, Royal Decrees and Acts of the Legislature.  The Government has with the assistance of WIPO prepared a new law relating to marks, trade names and unfair competition.  The digest below is based on the English translation, not the Khmer version.

Tourists are returning to the country to visit the extra-ordinary temples of Angkor.  The temples are one of the Wonders of the World.

Commercial investment and aid is trickling in from the IMF, World Bank, ADB and various governments.

Many foreign non-governmental humanitarian organizations and compassionate groups are very active in trying to improve local skills and are also working to heal the widespread emotional, physical and spiritual scars born by the people.

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New Law

The Cambodian Government has indicated that it wishes to protect registered marks and trade names and to prevent acts on unfair competition through the creation and the use of marks and trade names. The new law is substantially compliant with TRIPS.

A mark is defined as any visible sign capable of distinguishing the goods or services ("products") of  legal entity.

A trade name is the name that identifies and distinguishes an enterprise.

Collective marks are registrable but there is no provision for certification marks.

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Registration

The owner of a mark can secure exclusive statutory rights to the mark by registration with the Ministry of Commerce.

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Registrability

Marks are prohibited from registration if they are:

  1. incapable of distinguishing the products of the owner.  It would appear that the test is consistent with the current Australian and UK registrability criteria;

  2. contrary to public order, morality or good custom;

  3. likely to mislead the public in relation to the geographical origin of the products or as to the nature of the products;

  4. identical with or an imitation of or contains as an element the designation, flag, emblem, or name of a government organization or an organization created under an international convention;

  5. identical with or confusingly similar to a translation of a mark or trade name which is well-known in Cambodia for the identical or similar products of another entity;

  6. identical with or confusingly similar to or is a translation of a mark or trade name which is well-known and registered in Cambodia for products which are not identical or similar to those covered by the registration, provided that the use of the mark in relation to those products would indicate a connection between those products and the owner of the well-known mark such that the interest of the owner of the well-known mark would be likely to be damaged by such use; or

  7. identical with a mark belonging to a different owner already on the register in respect of the same products or closely related products or if it nearly resembles such a mark as to be likely to deceive or course confusion.

There is no definition of what is a well-known mark.  It is incumbent on a party seeking to rely on provisions containing that term to establish what is a well-known mark and that the mark in question is well-known.  Since Cambodia have been assisted by WIPO in the preparation of the law we expect that international definitions of what is a well-known mark would be of persuasive assistance.

There is no definition in the law as to what are closely related products or in what circumstance deception or confusion would be regarded as arising.  As in other countries we expect that this would be determined by the courts on a case by case basis.

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SKYS
Lawyers


The Kingdom of
Cambodia -
A New Century,
Renewed Hope,
A New Law




























SKYS
Lawyers


The Kingdom of
Cambodia -
A New Century,
Renewed Hope,
A New Law




























SKYS
Lawyers


The Kingdom of
Cambodia -
A New Century,
Renewed Hope,
A New Law




























SKYS
Lawyers


The Kingdom of
Cambodia -
A New Century,
Renewed Hope,
A New Law




























SKYS
Lawyers


The Kingdom of
Cambodia -
A New Century,
Renewed Hope,
A New Law

 

Examination

Cambodia will comply with the Paris Convention in allowing priority claims.

Upon receipt of the application the Registrar will check that:

  1. it complies with the formal requirements;

  2. it complies with regulations.  Regulations have not yet been published.  The Regulations and related Sub-Decrees are expected to be completed by the end of 2002;

  3. it falls within the definition of a "mark";

  4. it does not fall into the category of unregistrable marks;

  5. it is not identical or similar to a mark filed on a different date in relation to identical or similar products.  If that is the case then the Registrar may refuse to register any of the marks until the rights have been determined by the Registrar or an agreement has been reached between the parties in a manner approved by the Registrar; and

  6. it is not identical or similar to another mark claiming identical or similar products filed on the same date.  In that event only one applicant will be allowed to secure a registration.  The law provides for a consultation between the applicants to determine who should be the rights owner.  There is no indication that the agreement resulting from any consultation should be approved by the Registrar, as is the case for conflicting marks not filed on the same date.

If the application does not comply with the formal requirements or faces an objection that it is unregistrable, then the applicant has 45 days within which to amend his application to overcome the requisition.  If the applicant does not respond within the 45 days the application will be refused.

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Oppositions

The opposition period will be 90 days from the date of publication in the Official Gazette.  Third parties may oppose the application on one of the prescribed grounds using a prescribed form.  The applicant will then be required to file a counter-statement.  If no counter-statement is filed  the Registrar will treat the application as having been abandoned.

If a counter-statement is filed then a hearing will be set if either party wishes to be heard.  The Registrar will then consider the case and decide whether the application should proceed to registration.

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Registration and Rights

A registered mark may only be used in relation to the products covered by registration, by the registered proprietor, or under the license of the registered proprietor.

The registered proprietor can institute court action to prevent third parties from using the same mark in relation to the registered products.

Interestingly, the law also provides an avenue to prevent actions that are likely to lead to an infringement.

The registered proprietor cannot rely on the registration to prevent the use of the mark on "articles which have been put on the market in the Kingdom of Cambodia by the registered owner or with his consent".  This appears to be an attempt to deal with parallel imports.  Many arguments could arise on the interpretation of this clause, including whether the proprietor only consented to use of the mark in another country.

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Renewal

A mark is registered for an initial period of ten years. The proprietor can renew the registration for additional 10-year periods.

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Cancellation

Third parties may apply to invalidate a registration on prescribed grounds.

The Ministry of Commerce may also cancel a registration in certain circumstances.  One basis is that the owner of a registered mark ceases to have an address for service in Cambodia. The new law states that only local agents will be entitled to conduct business before the Registry.  At the moment non-resident agents can deal with the Registry. This requirement is important as the vast majority of registrations in the first few years after the re-opening of the Trade Marks Register were secured by foreign agents without a local address in Cambodia.

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Licenses

There is no requirement for government approval of licenses, but the proprietor must ensure there is quality control in theory and in practice.  Any license relating to a registered mark must be submitted to the Registry.  A license cannot be enforced against third parties until the recordal has been effected.

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SKYS
Lawyers


The Kingdom of
Cambodia -
A New Century,
Renewed Hope,
A New Law




























SKYS
Lawyers


The Kingdom of
Cambodia -
A New Century,
Renewed Hope,
A New Law




























SKYS
Lawyers


The Kingdom of
Cambodia -
A New Century,
Renewed Hope,
A New Law




























SKYS
Lawyers


The Kingdom of
Cambodia -
A New Century,
Renewed Hope,
A New Law

 

Customs

The Proprietor of a registered mark can request assistance from Customs to enforce rights. The proprietor may need to provide security or an assurance to Customs before they will respond to a request for action.

Customs can also initiate enforcement actions.

Personal items of a non-commercial mature will not be prohibited.  This  clause was probably included to alleviate the concerns of individual travelers who leave the Kingdom with a small quantity of infringing items purchased in the several markets selling infringements.  At this time clothing, watches, shoes and electrical goods bearing infringing marks are most commonly available. A few prominent service marks have also been infringed.

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Court

Registered proprietors can apply to the Court for interlocutory assistance to enforce rights.

Parties unsatisfied by any decision of the Registry will be able to appeal to the Court. Given that intellectual property law is a relatively new concept in Cambodia it will take some time before the local agents and Courts become  familiar with all the issues.

At the moment, most enforcement is handled as an administrative manner by the Ministry of Commerce.

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Remedies

The Law sets out the monetary penalties for the manufacture of infringing items.

It is not clear as to why the minimum fine for imitation is higher than the minimum fine for counterfeiting.

There is a double penalty for recidivism.

Directors, managers or representatives of a company found to be infringing may be personally liable!

The court can order the confiscation and destruction of infringing goods.

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Corruption

Receiving cash for abuse of  a position will be actionable.  This is presumably aimed at deterring officials in the Ministry of Commerce, other government departments and the judicial branch from receiving bribes or favors. The Kingdom is not currently a signatory to the OECD Anti-Bribery Convention.

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Trade Names

The law prohibits the use of trade names which:

  1. are contrary to public order or morality; or
  2. are liable to deceive the public or trade as to the nature of the enterprise using the name.

Trade names will be protected even prior to or without registration against any unlawful act committed by third parties.

Use by a trade name by a third party which is liable to mislead the public is deemed to be unlawful.

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Unfair Competition

Unfair Competition is prohibited.  Unfair competition is defined as "any act of competition contrary to honest practices in industrial, commercial and service matters".

The law is not yet in force. Nontheless the terms of the law have been settled and it is only a matter of time before it will be effective.

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Copyright Barry Yen 2002