Intellectual Property Disputes in Business Activities in Vietnam

In today’s increasingly competitive business environment, intellectual property (IP) is not only an “intangible asset” but also a foundation that creates value and brand strength for enterprises. A logo design, a piece of software, or a proprietary technology can all become either a “weapon” or a “critical weakness” when a dispute arises.

With the rapid growth of e-commerce and the creative economy, intellectual property disputes are becoming more frequent and complex. So, what should businesses understand, and how should they respond when their IP rights are infringed?

1. Common Types of Intellectual Property Disputes in Business

1.1. Trademark, Logo, and Trade Name Infringement

This is the most common type of IP dispute. It occurs when a business uses a name or symbol similar to a registered trademark, causing confusion among consumers. Such conduct not only damages reputation but can also result in loss of customers and revenue for the infringed party.

1.2. Unauthorized Use of Patents, Industrial Designs, or Trade Secrets

When a business invests in developing products, technologies, or designs, any unauthorized copying — even with minor changes — constitutes an infringement if no permission is granted. These disputes often occur between competitors in the same industry or between manufacturers and distributors.

1.3. Copyright Disputes Involving Software and Digital Content

In the digital era, copying, editing, or reusing content without consent is widespread. Many companies producing digital content, games, or graphic designs face copyright violations but struggle to collect evidence or identify the infringing party.

1.4. Disputes over IP Licensing or Technology Transfer Agreements

Such disputes arise when parties enter into franchise, licensing, or technology transfer contracts but later disagree on scope, terms, or payment. Conflicts also occur when one party unilaterally expands its rights or terminates the agreement early.

1.5. Disputes over Registration Rights, Priority, and “Bad Faith” Filings

Some businesses discover that their brand has been registered by others—especially in export markets. This is considered a bad-faith trademark registration and can be subject to cancellation of protection titles under Article 96 of Vietnam’s Intellectual Property Law 2022.

2. The Updated Legal Framework for IP Dispute Resolution

2.1. Competent Authorities

Currently, IP disputes in Vietnam can be resolved through three main channels:

• Administrative procedures: handled by the Inspectorate of the Ministry of Science and Technology, Market Surveillance Authority, or the National Office of Intellectual Property (NOIP). Sanctions may include fines, seizure, or destruction of infringing goods.

• Civil / Commercial litigation: filing a lawsuit with the People’s Court to request cessation of infringement and compensation for damages.

• Commercial arbitration: applicable when the parties agree in their IP transfer or licensing contract.

From July 1, 2025, under the Law on Organization of the People’s Courts (Amended) 2025 – Law No. 81/2025/QH15, Vietnam will establish specialized IP divisions or chambers within regional People’s Courts.
This reform aims to enhance judicial expertise, reduce case resolution time, and ensure consistency across provinces.

2.2. Rights to Request Termination or Invalidation of Protection Titles

Under Articles 95 and 96 of the Intellectual Property Law 2022, IP protection titles (such as trademarks, patents, industrial designs, and copyrights) may be:

• Terminated: when the owner fails to renew, ceases to exist, or does not use the trademark for five consecutive years.

• Invalidated: when the granted title does not meet protection requirements or was filed by a party without legitimate rights.

Currently, such requests must still be submitted to the National Office of Intellectual Property (NOIP) and cannot be directly decided by the courts. However, in the near future, specialized IP divisions may be authorized to handle these issues under the direction of the Supreme People’s Court.

2.3. Updated Sanctions and Legal Liabilities

• Administrative penalties: fines up to VND 250 million for individuals and VND 500 million for organizations, along with confiscation or destruction of infringing goods.

• Civil compensation: calculated based on actual damages or illicit profits obtained from the infringement.

• Criminal liability: under Article 225 of the Penal Code 2015 (amended 2017), IP infringement for commercial purposes or causing serious damage may result in up to 3 years’ imprisonment or fines of up to VND 1 billion.

3. Practical Issues and Experience in Handling IP Disputes in Vietnam

3.1. Common Challenges

• Evidence collection: proving copying, manufacturing, or unauthorized use is difficult—especially for digital violations.

• High appraisal costs: IP assessment procedures are often expensive and lengthy, with results that may lack persuasiveness.

• Prolonged proceedings: IP lawsuits typically last 12–24 months, or longer if appeals are filed.

• Counterclaims: the defendant may file a counterclaim to invalidate the plaintiff’s protection title, complicating the case.

3.2. Effective Strategies

• Send a Cease & Desist Letter before filing a lawsuit to demonstrate goodwill and create a legal record.

• Register IP rights early and comprehensively to prevent others from registering your brand first.

• Choose the appropriate dispute resolution mechanism:

  • For clear violations → request administrative enforcement for swift action.

  • For major damages or cross-border cases → file a civil lawsuit in the specialized court division.

• Prepare complete litigation documents: including certificates of registration, contracts, expert opinions, photos, and data proving infringement and losses.

• Apply for interim injunctive relief: such as suspension of sales, seizure of infringing goods—especially useful in counterfeit cases.

4. Protecting IP Rights Means Protecting Brand Value

An IP dispute, if mishandled, can cost a business far more than legal fees—it can damage reputation, customer trust, and market opportunities.

In practice, businesses with in-house legal counsel or early legal support always have an advantage. They receive advice on registration strategy, licensing structures, and internal confidentiality systems to prevent future conflicts.

5. Conclusion

In an era of deep global integration, intellectual property rights are a “golden shield” protecting innovation, brands, and competitive advantage. Vietnam’s legal framework—particularly the Intellectual Property Law 2022 and the Law on Organization of the People’s Courts 2025—continues to evolve toward a more specialized and efficient dispute resolution system.

However, prevention is always better than litigation. Timely registration, professional IP management strategies, and early evidence collection remain the keys to proactively safeguarding a business’s intellectual assets.

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