Importing goods that involve intellectual property (IP) rights is being controlled ever more tightly in Vietnam. In particular, if the original label (or the supplementary label) of the goods bears the ® symbol (indicating a protected trademark) but the mark has not actually been registered or granted a protection title in Vietnam, the importing business can face very heavy administrative penalties.
What Is Intellectual Property?
Intellectual property is the right of an organisation or individual over the products of the intellect – creations of a mental nature that initially have no tangible form. It comprises the following rights:
- Copyright and related rights: protecting literary, artistic and scientific works created by an individual or organisation, as well as products such as sound recordings, performances, broadcasts and satellite signals.
- Industrial property rights: protecting inventions, industrial designs, trademarks, trade names, business secrets and elements related to unfair competition.
- Rights to plant varieties: protecting the rights of individuals and organisations over new plant varieties that have been created, discovered and developed.
These rights not only help affirm the legitimate interests of the owner but also foster creativity and innovation in the knowledge economy.
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Legal Basis for Penalties When You Unintentionally Violate Protection Marking Rules
Violations relating to industrial-property protection markings are governed mainly by:
- Article 6 of Decree No. 99/2013/ND-CP (as amended and supplemented by Decree 126/2021/ND-CP and related texts).
- Circular No. 06/2024/TT-BKHCN amending and supplementing Circular No. 11/2015/TT-BKHCN (which gives detailed guidance on the implementation of Decree 99/2013/ND-CP).
- Under the regulations, providing false indications about the legal status or scope of protection of industrial-property rights can be fined from VND 10,000,000 to VND 20,000,000 (the level may vary depending on the quantity and value of the offending goods and any aggravating or mitigating circumstances).
What Is "False Indication of Protection Status"?
One common error is attaching the ® symbol (usually used to indicate a trademark protected in Vietnam) on the original or supplementary label when the mark has not in fact been registered or approved for protection. This misleads consumers into believing that the mark is recognised by Vietnamese law.
In addition, providing incorrect information, such as:
- "This trademark is exclusively protected in Vietnam"
- "The trademark is the exclusive property of…"
- Or similar wording where no protection title has been granted
- are all considered violations.
Fines and Remedial Measures
Under Article 6 of Decree 99/2013/ND-CP (as amended and supplemented), an offending organisation or individual may:
- Be fined from VND 10,000,000 to VND 20,000,000 (or more, depending on severity).
- Be required to remove the offending element from the goods, labels, packaging, etc.
- Be required to destroy or re-export the offending goods (in serious cases that significantly affect the rights and interests of consumers or of the genuine trademark owner).
Importing businesses should note that the fine can increase substantially if:
- A large quantity of goods is involved.
- The value of the offending goods is high.
- The violation is repeated or recurs multiple times.
How to Avoid Violations When Importing IP-Registered Goods
Check the protection status of the trademark/invention before importing
- Search the database of the Intellectual Property Office of Vietnam or use the services of IP representative organisations.
- Ask the manufacturer to provide evidence of protection registration in Vietnam (if any).
Adjust the supplementary label to comply with Vietnamese law
- If the original label shows ® but the mark is not registered in Vietnam, remove it and replace it with the ™ symbol or clearly state "This product has not been registered for intellectual-property protection in Vietnam".
- If you wish to state information about protection, you must clearly indicate the registration status (registered, pending grant, or not registered).
Seek legal advice
- Work with a lawyer or an "Intellectual Property" consultancy before importing.
- Review the contract and import documents to avoid incorrect content regarding industrial-property rights.
Ensure goods are labelled in accordance with the regulations
- Comply with Decree 43/2017/ND-CP on goods labelling (and its amending and supplementing texts).
- Fully update the mandatory information on the supplementary label, including: product name, name and address of the manufacturer, origin, instructions for use, warnings, etc.
Why Strict Compliance with Intellectual Property Rules Matters
- Protecting your business's reputation: an IP violation causes serious damage to a company's image, especially in the context of international integration.
- Avoiding legal risk and high penalty costs: the cost of an administrative fine can be far higher than the initial cost of registering protection or seeking legal advice.
- Protecting consumers' interests: honest information about a trademark's protection status helps consumers avoid being misled about a product's quality and origin.
Conclusion
Importing goods that involve intellectual property rights requires care and full compliance with the regulations. Incorrectly stating or misleading buyers about a trademark's protection status can lead to heavy fines and harm both business operations and reputation. Businesses should therefore check carefully, proactively seek legal advice and register trademark protection (where applicable) in Vietnam to avoid risk and develop sustainably.
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