In recent decades, software technology has undergone constant development at a rapid pace, becoming one of the vital sectors and major drives of the global economy. From mobile applications to enterprise software, software technology has been applied to every aspect of modern life, transforming how we communicate, work, and play. With the rise of the digital economy, software is no longer just a tool but also a critical strategic asset for individuals, enterprises, and nations.

In this context, software copyright plays a vital role. Copyright is not only a legal tool to protect the rights of creators but also the foundation for ensuring a fair and healthy technology market. Thereby, software copyright registration encourages creativity and innovation, avoids copying, and ensures the sustainability of software developers in investing, recovering capital, and generating profits from software. In the following article, from a legal perspective, we will share why software copyright registration is necessary and important and needs to be performed before the software is publicly launched.

1. Establishing Authorship and Legal Ownership

Through the copyright registration procedure, the copyright owner will be granted a Copyright Registration Certificate by the Copyright Office, which will recognize you as the author and copyright owner of the software, also known precisely as a computer program. You may understand that you are the author who is the researcher to create a computer software program, or as the employer, or investor who contributed capital to the software’s creation. However, if a third party registers the software first, you will be responsible for gathering all the necessary evidence to prove to the competent authorities and dispute resolution authorities for the ultimate purpose that you are the true author and legal copyright owner. According to Intellectual Property Law, “Organizations and individuals who have been granted a Copyright Registration Certificate, a Related Rights Registration Certificate do not have the obligation to prove their authorship or related rights when there is a dispute unless there is evidence to the contrary.”

However, the dispute process has no guarantee to help you establish your authorship or copyright ownership as the dispute resolution authority will base its final decision on the validity and completeness of the evidence. By default, during the dispute, the law still recognizes the individual or organization whose name is registered on the Copyright Registration Certificate as the author and copyright owner.

2. What are the legal risks of not registering software copyright?

Failing to register a software copyright can lead to significant legal risks for individuals or organizations using such software. Here are some of the key risks:

Copyright infringement: If you use or distribute software without a license or legal copyright, you can be accused of copyright infringement. This could result in legal action, such as lawsuits, and you may be liable for fines or damages.

Loss of control over intellectual property: If you are a software developer and do not register a copyright for your product, you may lose control over it. Others may copy or use your product without your consent or payment.

Termination or Injunction of Associated Property Rights: As the copyright owner, you hold the property rights to the software, which are the primary rights you aim to exploit for financial gain. However, if you do not register the software copyright and another third party has been granted a Copyright Registration Certificate, as analyzed in Section 1, the first thing is that the third party will force you to remove and terminate the exploitation of the software’s property rights. You will be forced to go through the competent authorities to protect your rights and fulfill your obligations to provide evidence. Based on our experience, we have observed that the resolution time from the competent authorities is quite lengthy. During this period, under the law, the third party remains the copyright owner of the software and has the right to exploit its property rights without any hindrance.

3. Failure to Register Software Copyright Results in Loss of Commercial Benefits

Registering software copyright not only helps you avoid legal risks but also prevents you from losing commercial benefits. Here are some typical examples:

Gaining a Competitive Edge: Registered software is generally perceived by the market as having a higher value than unprotected software. This helps build a strong brand, increase professionalism, and establish credibility among consumers and enterprises.

Attracting Investment: Registered software serves as a positive signal for investors, particularly investors and investment funds seeking high-return, low-risk projects. In recent years, determining the “sustainable development” factor of each enterprise or project has become a crucial consideration for investors and investment funds due to the sustainability of an enterprise or project helps investors manage risks associated with their capital. Legal compliance is considered an integral component of evaluating an enterprise’s sustainable development. Besides, investing in copyrighted software not only enhances legal protection but also protects investor interests and ensures recovery capital as well as profits in the future. Intellectual Property Law regulates that products, goods, and services derived from copyright infringement acts are also deemed to infringe copyright, subject to destruction, confiscation, or other measures depending on the specific circumstances.

Market Expansion: By licensing your software, you can expand your market by allowing third parties to use your product under clear terms and conditions. This not only generates revenue from copyright sales but also from royalties, technical support, and product updates. However, all of this can only be done smoothly if your software is registered for protection.

In summary, copyright is not only a legal tool to protect the rights of creators but also a mechanism to promote innovation and investment in research and development. This is particularly important in information technology and software, where technological advancements occur rapidly and continuously demand innovation to maintain competitiveness.

Registering your software copyright is an essential step to protect your intellectual property and enhance your competitiveness and ensure economic benefits in today’s increasingly diverse and competitive business environment. Through this article, we would like to emphasize the importance of copyright registration and encourage individuals and enterprises to seize the immense benefits that this process brings.

Time of writing: 03/05/2024

The article contains general information which is of reference value, in case you want to receive legal opinions on issues you need clarification on, please get in touch with our Lawyer  at  info@cdlaf.vn

You can refer for more information:

• Foreign contractor tax obligations of foreign investors when conducting business in Vietnam (Part 1)
• Contractor tax for enterprise providing services in Vietnam
• Procedure for software copyright registration in Vietnam