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Vietnam IP enforcement options for brand owners

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Vietnam IP enforcement options fall into four routes: administrative action, a civil lawsuit, criminal referral and customs control at the border. Each one has a different speed, cost and goal. The right choice depends on where the fake goods are and what you want to happen to them.

This guide explains each route in plain terms. It gives background only and is no substitute for counsel, so a Vietnamese IP lawyer with a license should review your case before you act.

Start with the legal base

Vietnam's Law on Intellectual Property (Law No. 50/2005/QH11) came into force on 1 July 2006. Part Five covers enforcement. Article 199 says an infringer may face civil, administrative or criminal remedies, depending on how serious the case is.

Article 198 also lets you act on your own first. You can use technical measures, send a letter that demands the infringer stop, or ask a state agency to step in. Many cases end at this step.

Before any route, you need proof that you own the right. Article 203 says the plaintiff must show ownership, usually with a registration certificate. Register your marks and patents in Vietnam early. A right that is not registered here is hard to enforce here.

The law has been amended since 2005, in 2009, 2019 and 2022. The article numbers in this guide follow the original 2005 text. Check the current wording of each article before you rely on it.

Source: WIPO Lex, Law No. 50/2005/QH11 on Intellectual Property, Articles 198, 199 and 203 (wipo.int/wipolex, legislation record 12011, which holds the 2005 text).

Administrative action: fast and low cost

Administrative action is the most used route for counterfeit goods in shops and warehouses. Article 200 names the bodies that handle it: inspectorates, police, market management offices, customs and People's Committees.

Article 214 sets the penalties. The main ones are a warning or a fine. Extra penalties include seizing the fake goods and the tools used to make them, and suspending the business for a set period. The authority can also order the goods destroyed or used for non-commercial purposes.

Decree 99/2013/ND-CP gives the detail for industrial property cases such as marks, patents and designs. It came into force on 15 October 2013. As issued, it caps a fine at 250 million VND for an individual and 500 million VND for an organisation. It also lists remedial steps, such as removing the infringing elements from a product or changing a domain name.

This route suits brand owners who want fake stock taken off shelves quickly. It does not pay you damages. If you want money for your losses, you need a court.

Sources: WIPO Lex, Law No. 50/2005/QH11, Articles 200 and 214; WIPO Lex, Decree No. 99/2013/ND-CP of 29 August 2013 on administrative sanctions in industrial property (legislation record 17228).

Civil lawsuit: for damages and a court order

A civil case goes to the courts. Article 202 lets a court order the infringer to stop, apologise and correct the wrong, and pay damages. The court can also order the infringing goods and materials destroyed or used in ways that do not harm you.

Articles 204 and 205 describe the damages. They cover real losses, lost profit and lost business chances. Industrial property owners may also recover reasonable lawyer fees.

Courts can also act before a full hearing. Articles 206 to 210 allow provisional urgent measures, such as freezing or seizing suspect goods and evidence. You must post security first, and you must pay for harm if the goods turn out not to infringe.

This route suits owners who have a clear registered right, solid evidence and a defendant worth suing. It is slower and costs more than an administrative case. Plan for it only when money damages matter.

Source: WIPO Lex, Law No. 50/2005/QH11, Articles 202 to 210.

Criminal referral: for the most serious cases

Article 212 says an individual whose infringement meets the elements of a crime is examined for criminal liability under the criminal law. In practice this is for large scale or repeat counterfeiting, not for small sellers.

You do not run a criminal case yourself. You report the facts and evidence to the police. They decide whether to open a case. That means you give up some control over timing.

This route suits owners who face organised copying with large volumes. A criminal case sends a strong signal to the market. Many owners still start with an administrative case, because it is faster and the authorities can pass a file on to the police if the facts support it.

Source: WIPO Lex, Law No. 50/2005/QH11, Article 212.

Customs control: stop fakes at the border

Article 216 lets customs suspend clearance of goods that are suspected to infringe. You ask for this to get information and evidence. You must show you own the right, identify the goods and file a written request. You also need to give a security deposit.

Circular No. 13/2015/TT-BTC explains how it works. Customs decides on a satisfactory application within two working hours. The first suspension lasts 10 working days from the decision, and customs may extend it by up to another 10 working days if you provide a further guarantee. The guarantee can be a certificate from a credit institution or a sum of money. If you do not follow up with a lawsuit or an administrative case, customs lets the goods go.

This route suits owners who know that fakes arrive by container or air freight. It can stop goods before they reach the market. File your rights with customs ahead of time, so you can move fast when a shipment is flagged.

Sources: WIPO Lex, Law No. 50/2005/QH11, Articles 216 to 219; WIPO Lex, Circular No. 13/2015/TT-BTC of 30 January 2015 (legislation record 15792).

How to choose

Use this short guide.

  • Fakes in shops, need speed: administrative action.
  • Want damages or a court order: a civil lawsuit.
  • Large organised counterfeiting: report to the police for a criminal case.
  • Imports or exports: a customs request.

The routes can work together. A customs hold can lead to an administrative case. Evidence from an administrative case can support a civil claim. Keep your registration papers, purchase samples and photos in one file from day one.

Sources

  • WIPO Lex, Law No. 50/2005/QH11 on Intellectual Property: https://www.wipo.int/wipolex/en/legislation/details/12011
  • WIPO Lex, Decree No. 99/2013/ND-CP: https://www.wipo.int/wipolex/en/legislation/details/17228
  • WIPO Lex, Circular No. 13/2015/TT-BTC: https://www.wipo.int/wipolex/en/legislation/details/15792