Intellectual property was the “backbone” of creative organisations. — Photo baovanhoa.vn

HCM CITY — As Việt Nam seeks to expand its cultural industries, intellectual property is emerging as the “seed capital” that can turn creative ideas and cultural identity into investable assets, commercial products and sustainable revenue streams.

A creative idea can serve as the starting point for an entire chain of products, services and long-term revenue. Yet for cultural value to become a genuine driver of economic development, intellectual property must be properly established, protected, packaged, valued, traded and reinvested.

The proposed Law on Cultural Industry Development is expected to provide a legal framework for turning cultural identity into intellectual property and intellectual property into economic value, paving the way for Vietnamese cultural products and brands to compete and gain a foothold in international markets.

Unlocking the economic value of creativity

As competition between cultures intensifies, the cultural industries are no longer simply a means of preserving and promoting cultural values, but have become an important economic sector in many countries.

The value of a film, television programme, musical work, video games, design, handicrafts or cultural destinations lies not only in the original product, but also in the potential to exploit intellectual property rights, develop derivative products, grant commercial licences and take content to multiple markets.

In Việt Nam, the cultural industries’ contribution to GDP is estimated at around 4-5 per cent during the 2018-2025 period, still significantly below the target of at least 7 per cent by 2030.

One reason is that the value chain remains poorly connected.

Creative activities are not yet closely linked to intellectual property rights; rights are not easily converted into assets; assets have limited access to capital; and once products are created, distribution, commercialisation and export channels remain insufficiently developed.

Existing specialised laws have established a relatively comprehensive legal framework for protecting intellectual property rights.

However, policies to unlock their economic value remain inadequate and fragmented.

Many works are protected but lack complete asset records, have not been properly valued and cannot readily be used to raise capital or support transparent transactions.

Against this backdrop, the draft Law on Cultural Industry Development identifies intellectual property assets as a key driver of added value and a foundation for developing derivative products.

They are also the “seed capital” that allows an idea to go beyond a single product and evolve into a brand, content ecosystem and sustainable revenue stream.

Commenting on the draft law, Dr Ngô Đắc Thuần, Chairman of IP Group, said intellectual property was the “backbone” of creative organisations.

When creative achievements are properly protected and managed, authors and creators have a basis for receiving fair remuneration, while businesses can continue developing different versions and derivative products, creating a broader economic value chain.

According to Thuần, the draft law should clarify the distinction between, and relationship between, intellectual property rights protection and the “assetisation” of intellectual property.

In practice, many organisations and businesses focus on registering or recognising rights, but have yet to give sufficient attention to reviewing, packaging, valuing and putting intellectual property assets to use in investment and business activities.

“Intellectual property assets and intellectual property rights only have value when they are commercialised, recorded in accounting books and financial statements, and recognised as an investment rather than simply a cost,” Thuần said.

Another bottleneck is the capacity to value intellectual property assets. Their value depends on the quality of content, level of recognition, scope of rights, market potential and prospects for developing derivative products.

While the Law on Prices contains relevant provisions, the market still lacks a sufficient pool of professional valuers, specialised organisations and reliable reference databases.

Lawyer Trần Quốc Bảo of the HCM City Bar Association said it was necessary to distinguish intellectual property asset valuation from pricing a product before sale.

Valuation aims to determine the value of individual rights, providing a basis for recognising intangible fixed assets in accounting books and financial statements, or using intellectual property assets as capital contributions or for business cooperation.

Owners can participate in joint ventures by contributing copyright, patents, industrial designs or other lawful property rights, rather than relying solely on cash and tangible assets.

The draft law therefore calls for the development of valuation methods, standards, technical guidelines and databases in line with international practices; the piloting of new models for valuing intellectual property assets; and specialised training for valuers, intellectual property specialists, lawyers, auditors, financial experts and credit institutions.

With appropriate valuation, intellectual property rights can become capital contributions, investment assets or tradable commodities.

The proposed Law on Cultural Industry Development is not intended to replace the Law on Intellectual Property or other specialised legislation, but to address grey areas, gaps and implementation bottlenecks while connecting intellectual property rights with capital, production, distribution, revenue, reinvestment and exports.

With appropriate valuation, intellectual property rights can become capital contributions, investment assets or tradable commodities. — Photo VNA/VNS

Protecting ‘seed capital’ in the digital environment

Digital transformation is reshaping the entire process of creating, producing, distributing and consuming cultural products.

A work can reach millions of people within a short period, but can also be copied, modified and exploited without permission just as quickly. The development of artificial intelligence (AI), in particular, is raising new questions about data sources, originality, copyright and the extent of human creative contribution.

Dr Ngô Đắc Thuần said that before digitising processes or embarking on digital transformation, organisations should review and properly package their intellectual property assets.

If organisations do not clearly identify what assets they own, who holds the rights and the scope within which those rights can be exploited, digitalisation could increase the risk of disseminating assets without adequate protection mechanisms in place.

The draft law should therefore establish clear transparency principles for cultural products created with AI.

Creators need to distinguish between content they produce directly, content generated with AI assistance, and data and materials they have consulted or used.

Source attribution and disclosure of AI use can provide a basis for assessing originality, the extent of human creative contribution and the risk of infringing third-party rights.

Cultural tourism is also an important avenue for turning intellectual property into products and enabling “exports on the spot”.

According to Võ Anh Tài, Deputy General Director of Saigontourist, tourism should be positioned as an integrated sector that creates outlets for heritage, cuisine, performing arts, handicrafts, design, cinema, festivals and a wide range of creative products.

A heritage site only becomes part of the value chain when it is transformed into a compelling story, developed as a destination and connected with accommodation, cuisine, travel services, communications and distribution.

The law should therefore create mechanisms for businesses to invest in tours, itineraries, artistic programmes, night-time experiences, museums, festivals, digital content and heritage-related souvenirs, while avoiding the crude commercialisation of original cultural values.

Vice Chairman of the HCM City People’s Committee Nguyễn Mạnh Cường said the Law on Cultural Industry Development should take an open approach to the intersection of culture, technology, the digital economy and AI, creating legal space for new business models and new ways of creating, distributing and consuming cultural products.

“The city is focusing on building a professional, modern and regionally competitive cultural industry ecosystem. New models and methods of operation are gradually taking shape here, creating increasingly clear requirements for mechanisms, policies and the legal framework. Therefore, we believe the law should be designed in an enabling rather than purely regulatory direction,” Cường said.

When intellectual property assets truly become capital, creators can make a living from their work, businesses have a basis for long-term investment, and financial institutions have greater grounds for providing funding.

More importantly, Việt Nam’s stories, imagery, heritage and knowledge will not only be preserved in traditional spaces but can continue to live through films, music, design, games, tourism and digital products.

The Law on Cultural Industry Development is therefore expected to lay the foundation for better protecting this “seed capital” while enabling it to generate greater economic value.

When cultural identity is transformed into intellectual property assets, those assets are managed across the value chain, and intellectual property rights are effectively enforced, Việt Nam will be better positioned to build strong cultural brands that contribute to economic growth while taking the country’s image and soft power further into the world. — VNS