How is unauthorized use of a company's intellectual property handled under the law?

Unauthorized use of a company's intellectual property has become an increasingly common issue in the context of rapid digital transformation. Acts such as copying software, using designs, digital content, or trademarks without authorization not only adversely affect the legitimate interests of businesses but also lead to significant intellectual property legal risks.

I. The current situation of copying software, designs, and digital content within businesses

At present, the unauthorized copying of software, designs, and digital content has become increasingly prevalent, particularly in digital working and e-commerce activities. Many individuals and organizations use unlicensed software or reproduce logos, images, data, and creative content belonging to businesses without obtaining prior authorization, thereby directly affecting intellectual property rights and the commercial interests of owners.

In practice, intellectual property infringements not only result in revenue losses and diminished competitive advantages but also create the potential for prolonged legal disputes among the parties involved. Consequently, identifying and protecting intellectual property assets has become a critical concern for many businesses.

II. The concept of unauthorized use of a company's intellectual property assets

1. What constitutes unauthorized use of a company's intellectual property assets?

Unauthorized use of a company's intellectual property assets refers to an act whereby an individual or organization reproduces, uses, exploits, or distributes intellectual property owned by a business without obtaining the owner’s consent or beyond the scope of authorization.

Pursuant to Clause 1, Article 4 of the Law on Intellectual Property 2005 (as amended by Point a, Clause 1, Article 1 of the amended Law on Intellectual Property 2025), intellectual property rights are the rights of organizations and individuals over intellectual assets, including copyright, related rights to copyright, industrial property rights, and rights to plant varieties. Furthermore, under Clause 3, Article 6 of the Law on Intellectual Property 2005 (as amended and supplemented in 2009, 2019, 2022, and 2025), industrial property rights are established through the issuance of protection titles or lawful use in accordance with applicable laws.

2. Which types of intellectual property assets are commonly used without authorization?

The intellectual property assets most commonly subject to unauthorized use include:

• Computer software, source code, and internal databases;
• Corporate logos, trademarks, and trade names;
• Graphic designs, images, videos, and digital content;
• Trade secrets, customer information, and business strategies;
• Patents, industrial designs, and proprietary technical documentation.

Pursuant to Clause 2, Article 4 of the Law on Intellectual Property 2005 (as amended and supplemented in 2009, 2019, 2022, and 2025), copyright is the right of organizations and individuals over works created or owned by them. In addition, under Clause 4, Article 4 of the same Law, industrial property rights include rights to inventions, industrial designs, trademarks, trade names, and trade secrets.

3. Who may commit acts of unauthorized use of a company's intellectual property assets?

Parties committing unauthorized use of a company's intellectual property assets may include individuals or organizations such as employees, business partners, competitors, or third parties who reproduce, exploit, or use the intellectual property of a business without authorization.

Pursuant to Clause 6, Article 4 of the Law on Intellectual Property 2005 (as amended and supplemented in 2009, 2019, 2022, and 2025), an intellectual property rights owner means the holder of intellectual property rights or an organization or individual to whom such rights have been transferred. Thus, any individual or organization lacking the legal right or authorization to use intellectual property assets but nevertheless exploits them may be regarded as an infringing party.

In practice, common forms of infringement include software piracy, data theft, unauthorized use of similar trademarks, and unlawful dissemination of a company's digital content.

III. Legal regulations relating to unauthorized use of a company's intellectual property assets

1. What acts are considered infringements of a company's intellectual property rights?

An infringement of a company's intellectual property rights occurs when an individual or organization uses, reproduces, exploits, or commercially utilizes intellectual property owned by a business without the owner’s consent or beyond the authorized scope.

Pursuant to Article 28 of the Law on Intellectual Property 2005 (as amended by Clause 8, Article 1 of the amended Law on Intellectual Property 2022), copyright infringements may include:

• Unauthorized reproduction of software, images, designs, articles, or digital content;
• Unauthorized modification, editing, adaptation, or publication of copyrighted works;
• Removal of copyright management information or circumvention of copyright protection measures;
• Commercial exploitation, promotion, or dissemination of unauthorized copies of works.

Furthermore, under Article 35 of the Law on Intellectual Property 2005 (as amended by Clause 10, Article 1 of the amended Law on Intellectual Property 2022), unauthorized use of sound recordings, video recordings, broadcasting programs, or encrypted satellite signals is also deemed an infringement of related rights.

In addition, based on Article 126 of the Law on Intellectual Property 2005 (as amended and supplemented in 2009, 2019, 2022, and 2025), unauthorized use of protected inventions, industrial designs, or layout designs constitutes an infringement of industrial property rights.

Moreover, Article 127 of the Law on Intellectual Property 2005 (as amended and supplemented in 2009, 2019, 2022, and 2025) regulates that acts such as theft of internal data, disclosure of trade secrets, breach of confidentiality agreements, or unauthorized use of a company's confidential information are regarded as infringements of rights to trade secrets.

2. When does unauthorized use of intellectual property assets give rise to criminal liability?

Unauthorized use of intellectual property assets may result in criminal liability where an individual or organization intentionally infringes intellectual property rights on a commercial scale, obtains unlawful profits, or causes substantial damage to the rights owners.

Pursuant to Clause 1, Article 225 of the Criminal Code 2015 (as amended and supplemented in 2017 and 2025), acts involving the reproduction of copyrighted works, sound recordings, video recordings, or the distribution of unauthorized copies to the public may incur criminal liability where:

• The unlawful profit obtained is 50 million VND or more;
• The damage caused to the rights owner is 100 million VND or more; or
• The value of infringing goods is 100 million VND or more.

Furthermore, under Clause 2, Article 225 of the Criminal Code 2015, where the offense is committed in an organized manner, repeatedly, results in unlawful profits of 300 million VND or more, or causes damages of 500 million VND or more, the offender may receive imprisonment ranging from six months to three years.

In addition, based on Article 226 of the Criminal Code 2015, infringement of industrial property rights relating to trademarks or geographical indications protected in Vietnam may also result in criminal prosecution if committed on a commercial scale or if substantial damage is caused. 

3. Administrative sanctions for infringements of a company's intellectual property assets

Infringements of a company's intellectual property assets may be subject to various administrative sanctions, including monetary fines, confiscation of infringing goods, mandatory removal of infringing content, and compulsory destruction of infringing goods or copies. These matters are currently governed primarily by Decree No. 341/2025/ND-CP on administrative sanctions for copyright and related rights.

Pursuant to Article 3 of Decree No. 341/2025/ND-CP, the principal form of administrative sanction is a monetary fine. Additional sanctions may include confiscation of infringing exhibits and means used to commit violations or suspension of the use of relevant licenses and certificates.

Furthermore, Article 4 of Decree No. 341/2025/ND-CP provides for various remedial measures, including mandatory removal of infringing content from the Internet, compulsory destruction of infringing copies, public apologies, and disgorgement of unlawful profits derived from intellectual property infringements.

Notably, under Clause 1, Article 5 of Decree No. 341/2025/ND-CP, the maximum administrative fine is 250,000,000 VND for individuals and 500,000,000 VND for organizations. In many cases, organizations may be subject to fines that are twice the amount imposed on individuals for the same violation.

4. Interim emergency measures in intellectual property enforcement

Interim emergency measures in intellectual property enforcement are intended to promptly prevent ongoing infringements, preserve evidence, and minimize damage suffered by intellectual property rights holders. Pursuant to Clause 1, Article 207 of the Law on Intellectual Property 2005 (supplemented by Clause 69, Article 1 of the amended Law on Intellectual Property 2025), such measures include:

• Seizure of goods suspected of infringing intellectual property rights;
• Attachment of infringing goods, raw materials, materials, and means used in production or business activities;
• Sealing of infringing assets, prohibition of alteration of their status, or prohibition of their movement;
• Prohibition on the transfer of ownership of assets related to the infringing conduct;
• Concealment or temporary disabling of access to information, content, accounts, websites, applications, or Internet address identifiers associated with intellectual property infringements.

In addition, Clause 2, Article 207 of the Law on Intellectual Property 2005 (as amended and supplemented in 2009, 2019, 2022, and 2025) provides that courts may apply other interim emergency measures in accordance with the Civil Procedure Code 2015 (as amended and supplemented in 2025).

IV. Questions regarding unauthorized use of a company's intellectual property assets

1. Is the use of a similar trademark (rather than an identical one) considered unauthorized use of a company's intellectual property assets?

Pursuant to Point c, Clause 1, Article 129 of the Law on Intellectual Property 2005 (as amended and supplemented in 2009, 2019, 2022, and 2025), the use of a sign similar to a protected trademark for identical, similar, or related goods and services may still be considered trademark infringement if such use is likely to cause confusion as to the origin of the goods or services.

Accordingly, even where two trademarks are not completely identical, the use may still be regarded as unauthorized use of a company's intellectual property assets if their presentation, pronunciation, visual appearance, or meaning is likely to mislead consumers regarding the business entity providing the goods or services.

2. How can unauthorized use of intellectual property assets be proven?

To assess unauthorized use of intellectual property assets, a business must gather documents evidencing its lawful ownership rights as well as evidence of the infringing conduct. Such documents commonly include trademark registration certificates, copyright certificates, patent protection titles, intellectual property assignment agreements, design files, software records, and internal corporate documents.

In addition, evidence of infringement should be preserved, including product images, website content, social media accounts, sales invoices, advertisements, electronic data, or bailiff-recorded evidentiary reports documenting the infringing acts. According to Articles 91 and 95 of the Civil Procedure Code 2015 (as amended and supplemented in 2025), lawful evidence may be used to protect the legitimate rights and interests of businesses during dispute resolution proceedings.

3. How long does an intellectual property dispute usually take to resolve?

In practice, the resolution of intellectual property disputes may take anywhere from several months to more than one year, depending on the nature of the dispute, the complexity of the evidence, and the enforcement mechanism pursued.

Where the matter is handled through administrative procedures, the process is generally faster and may be resolved within a few weeks or several months. In cases brought before the courts, the time limit for trial preparation in a civil case ranges from four to six months, excluding any extensions, evidence-gathering activities, intellectual property assessments, or appellate proceedings according to Clause 1, Article 203 of the Civil Procedure Code 2015 (as amended and supplemented in 2025).

For disputes involving technology-related issues, electronic data, or substantial damages, the actual resolution period is often longer due to the need for valuation, expert examination, and verification of the alleged infringing conduct.

4. How are damages caused by intellectual property infringements determined?

Damages arising from intellectual property infringements are determined in accordance with Articles 204 and 205 of the Law on Intellectual Property 2005 (as amended and supplemented in 2009, 2019, 2022, and 2025). Such damages include both material damages and moral damages.

Specifically, Clause 1, Article 204 provides that material damages include losses of property, reductions in income or profits, loss of business opportunities, and reasonable expenses incurred to prevent or remedy the damage. Moral damages include harm to honor, prestige, reputation, and other non-material losses suffered by authors, performers, or intellectual property rights holders.

Pursuant to Clause 1, Article 205 (as amended by Clause 11, Article 2 of the Law on Insurance Business and the amended Law on Intellectual Property 2019), the amount of compensation for material damages may be determined based on the total actual losses plus the profits unlawfully obtained by the infringing party, or based on a hypothetical licensing fee for the use of the intellectual property asset. If the amount of damage cannot be determined with precision, the court may award compensation at its discretion, provided that such compensation does not exceed 500 million VND.

Furthermore, Clause 3, Article 205 permits intellectual property rights owners to request that the infringing party reimburse reasonable attorney's fees incurred in protecting their lawful rights and interests.

5. What internal regulations should businesses establish to effectively protect intellectual property assets?

Businesses should establish internal regulations governing the management and protection of intellectual property assets, including provisions relating to data access authorization, information confidentiality requirements, management of software, designs, and internal data, trademark usage procedures, and mechanisms for handling violations. Businesses should also require employees and business partners to execute non-disclosure agreements (NDAs) and commitments not to disclose trade secrets.

In addition, businesses are advised to register intellectual property rights at an early stage, maintain comprehensive records of creative works and innovations, implement data access control mechanisms, and regularly monitor unauthorized copying or use of intellectual property assets in digital environments.

Pursuant to Articles 4 and 6 of the Law on Intellectual Property 2005 (as amended and supplemented in 2009, 2019, 2022, and 2025), intellectual property rights are established through registration or lawful use, depending on the category of protected subject matter. Moreover, Article 127 of the same Law provides that unauthorized disclosure or use of trade secrets may constitute an infringement of intellectual property rights.

V. Why should you seek legal advice from NPLaw regarding unauthorized use of a company's intellectual property assets?

When a dispute arises or there is suspicion of unauthorized use of a company's intellectual property assets, obtaining legal advice at an early stage can help businesses promptly protect their rights, minimize potential losses, and prevent the loss of critical evidence. With extensive experience in the sector of intellectual property law, NPLaw assists businesses in assessing the nature and severity of violations, collecting evidence, identifying legal grounds, and developing appropriate enforcement strategies.

NPLaw can provide legal assistance in matters including intellectual property registration, enforcement against software piracy, unauthorized trademark use, infringement of digital content copyrights, disclosure of trade secrets, and dispute resolution before competent authorities and courts.

In addition, businesses may receive support in establishing internal confidentiality regulations, reviewing employment agreements and non-disclosure agreements (NDAs), and obtaining advice on interim emergency measures to effectively safeguard intellectual property assets in accordance with applicable laws.

The information provided above is for reference purposes only. Should you require detailed legal advice regarding a specific case, please contact NPLaw Firm for prompt consultation and assistance.