Statutory Damages for Intellectual Property Infringement in Vietnam: Safeguarding Your IP

Intellectual property (IP) has become one of the most valuable assets in today’s global economy. in many countries, intellectual property rights are protected by a robust legal framework. Ensuring that these rights are enforced not only promotes innovation and creativity but also safeguards businesses from unfair competition. In Vietnam, among the legal tools available to right holders is the ability to claim statutory damages in cases of intellectual property infringement. This article will explore the types of damages available, how they are applied, and what businesses need to understand about enforcing their rights in Vietnam.

The Importance of Intellectual Property Rights

In Vietnam, intellectual property rights are protected under the Constitution and a variety of laws, including the Law on Intellectual Property in 2005, amended by the Law amendments to some articles of the Law on Intellectual Property in 2022.This Law directly indicate the intellectual property rights, including industrial property rights, copyrights and? copyright related rights,? rights to plant varieties. Much like tangible property, intellectual property rights grant owners the right to possess, use, and dispose of their creations.

However, IP rights can only be effective if they are enforced. Violations such as unauthorized use, reproduction, or sale of protected intellectual property can result in significant financial losses for the owner. This is why the enforcement of IP rights, including the ability to claim statutory damages, is crucial.

What Are Statutory Damages?

Statutory damages refer to a pre-determined range of compensation that a court can award to a plaintiff in cases of IP infringement. In Vietnam, under the Amendments to the Law on Intellectual Property (2022), statutory damages allow plaintiffs to seek monetary compensation without the need to prove actual financial harm. This is particularly useful when the extent of the damage is difficult to quantify.

Objects of Intellectual Property Protection

Vietnam’s intellectual property laws protect a broad range of IP assets. These include:

• Copyright: Protecting literary, artistic, and scientific works,? copyright related rights: performances, audio and visual fixation, broadcasts and satellite signals carrying coded programmes
• Industrial Property: Including patents, industrial designs, trade secrets, trademarks, trade names, and geographical indications.
• Rights to Plant Varieties: Covering plant varieties and their reproductive materials.

Each type of intellectual property has its own set of rules and protections. However, when infringed, they all share the same enforcement mechanisms, including the possibility of claiming statutory damages.

Grounds for IP Violations

According to the Law on Intellectual Property, violations occur when certain conditions are met. These include:

1. The subject of the dispute falls within the scope of protected intellectual property rights.
2. The accused party does not have permission from the IP right holder or a competent authority.
3. The alleged infringement occurred within Vietnam, either physically or digitally (e.g., online actions targeting Vietnamese consumers or users who are believed that are in Vietnam).

Enforcement of IP Rights and Damages

When intellectual property rights are violated, the right holder has several legal tools at their disposal to stop the infringement and seek compensation. These tools include:

• Technological Measures: Implementing technological safeguards to prevent unauthorized use.
• Civil Remedies: Right that the intellectual property rights holders or organizations or individuals affected by the infringement can file civil lawsuits to seek compensation, force cessation of infringement, and request public apologies or corrections.
• Administrative Measures: In some cases, administrative bodies can take action against violators, imposing fines or other penalties.
• Criminal Measures: If the infringement constitutes a crime (e.g., large-scale counterfeit production), criminal charges can be pursued.

Types of Statutory Damages

Under the Law amendments of the Law on Intellectual Property in 2022, plaintiffs in Vietnam can claim two types of damages for intellectual property infringement: mental damages and material damages. Here’s how they work:

1. Mental Damages

Mental damages compensate the plaintiff for non-material harm, such as damage to their reputation or brand image. These damages range from 5 million to 50 million VND (approximately 220 to 2,200 USD).

2. Material Damages

Material damages compensate for financial losses incurred by the IP owner. Plaintiffs can choose one of three methods to calculate material damages:

• Actual damages plus the defendant's profits: This method requires the plaintiff to show the financial loss caused by the infringement and add any profits the infringer gained as a result of the violation.
• Licensing fees: The plaintiff can claim compensation based on the fee they would have earned if the infringer had obtained a proper license to use the IP.
• Fixed statutory damages: Plaintiffs can request the court to award damages up to 500 million VND(approximately 22,000 USD), even if they cannot prove actual financial harm.

In addition to these damages, plaintiffs can claim reasonable costs incurred in preventing or remedying the infringement. This includes attorney fees, expert opinions, emergency measures, and storage of goods.

Proving Intellectual Property Infringement

One of the most critical aspects of enforcing IP rights through civil lawsuits is the burden of proof. Plaintiffs must provide evidence to support their claim. This involves:

• Providing that the request is well-founded and legitimate (Article 91 of the Civil Procedure Code? 2015)
• Proving ownership of the intellectual property rights.
• Providing evidence of the infringement, such as documentation of unauthorized use or sales.
• In cases where damages are claimed, demonstrating the actual financial harm or presenting a basis for calculating statutory damages.

It is important to note that statutory damages apply to all types of intellectual property that are protected by law. However, there is no differentiation between willful and innocent infringement in determining the amount of statutory damages. This means that even if an infringer did not intend to violate IP laws, they could still face significant penalties.

Why Statutory Damages Matter

Statutory damages are essential for IP enforcement in Vietnam for several reasons:

• Deterrence: By imposing financial penalties, statutory damages serve as a deterrent to would-be infringers, discouraging unauthorized use of protected intellectual property.
• Simplifying Legal Action: In cases where it is difficult to quantify actual financial harm, statutory damages provide a straightforward way for right holders to claim compensation.
• Encouraging Innovation: By ensuring that intellectual property is protected and infringements are punished, statutory damages incentivize businesses to invest in new ideas, technologies, and creative works.

Conclusion: Protecting Intellectual Property in Vietnam

Vietnam’s legal framework for intellectual property protection is comprehensive, offering multiple avenues for enforcement, including the ability to claim statutory damages. For businesses and individuals who own IP rights in Vietnam, understanding how statutory damages work can be a powerful tool in protecting their interests and ensuring that infringements are appropriately penalized.

Whether you are a foreign investor, local entrepreneur, or creative professional, knowing how to leverage Vietnam’s IP enforcement mechanisms—including statutory damages—will help you safeguard your valuable intellectual property assets and maintain a competitive edge in the market.

By staying informed about Vietnam’s intellectual property laws and the available remedies, you can better protect your rights and ensure that your innovations and creations are not exploited unlawfully. Contact Viettonkin to learn more about IP and trademark registration in Vietnam and ensure your business is fully protected.