In the current context, the unauthorized use of confidential information is increasingly prevalent, causing serious harm to the rights and interests of individuals, organizations, and enterprises. Such conduct not only violates ethical standards but may also be subject to civil, administrative, or criminal sanctions under applicable laws.

I. Impact of unauthorized use of confidential information in the current context

At present, the unauthorized use of confidential information has become a matter of growing concern, particularly in the context of rapid developments in information technology and e-commerce transactions.

Such conduct may lead to serious consequences, including the disclosure of trade secrets, damage to reputation, loss of competitive advantage, and even significant financial losses for individuals and enterprises. Moreover, the unlawful use of information may infringe upon privacy rights and other lawful interests, resulting in complex disputes and legal proceedings.

II. What constitutes unauthorized use of confidential information?

1. Concept of unauthorized use of confidential information

Unauthorized use of confidential information may be understood as the act of exploiting, disclosing, trading, exchanging, or otherwise using confidential information of individuals, organizations, or enterprises without the consent of the lawful owner. Such information may include trade secrets, customer data, proprietary technology, business strategies, or sensitive personal information. Such a conduct is considered a violation of law, infringing upon the lawful rights and interests of the information owner, and may be subject to civil, administrative, or criminal liabilities depending on its severity.

2. Are there any cases where the use of confidential information is permitted?

The law permits the use of confidential information in certain exceptional cases, specifically:

  • Where consent has been obtained from the information owner in writing or under a lawful agreement between the parties.
  • Where required by competent state authorities during investigation, prosecution, adjudication, or for state management purposes, provided that legal regulations on confidentiality are strictly observed.
  • Where the law expressly permits disclosure or use, for example under laws on cybersecurity, intellectual property, or enterprise regulation, in order to safeguard public interests or national security.

Accordingly, the use of confidential information is lawful only where it is duly authorized by the owner or permitted by law; otherwise, any use shall be deemed unlawful.

III. Legal regulations on unauthorized use of confidential information

1. Relevant legal provisions

In the context where information is considered a valuable asset of enterprises, Vietnamese law provides stringent regulations to protect and strictly sanction unauthorized use, including:

  • Labor disciplinary measures: Pursuant to Article 125 of the Labor Code 2019, employees who disclose trade secrets or technological secrets causing serious damage to the enterprise may be subject to dismissal.
  • Administrative sanctions: Under Article 16 of Decree No. 75/2019/ND-CP, acts of unlawfully collecting, using, or disclosing trade secrets may be subject to fines ranging from 200 million VND to 300 million VND for organizations, or up to 150 million VND for individuals. Additionally, violating objects, means, or illicit profits may be confiscated.
  • Criminal liability: Pursuant to Article 288 of the Penal Code 2015, individuals who unlawfully use information on computer networks or telecommunications networks for illicit gain or causing significant damage may be subject to fines ranging from 30 million VND to 200 million VND, non-custodial reform for up to 3 years, or imprisonment for up to 3 years.

Thus, unauthorized use of confidential information may result in various levels of sanctions, including labor discipline, administrative sanctions, or criminal prosecution, depending on the nature and consequences of the violation.

2. Competent authorities for handling violations

In cases of unauthorized use of confidential information, particularly those involving unfair competition, competent authorities responsible for resolution include:

- Competition authority (Competition and Consumer Authority under the Ministry of Industry and Trade):

  • Under the Law on Competition 2018 (Article 45), unauthorized use of trade secrets constitutes an act of unfair competition.
  • Pursuant to Article 16 of Decree No. 75/2019/ND-CP, such acts may be fined from 200 million VND to 300 million VND (for organizations) or up to 150 million VND (for individuals).

- The Competition Authority reviews and handles such cases, with the Chairperson of the National Competition Commission issuing sanctioning decisions within 15 working days after the dossier is completed.

- People’s Courts: Where disputes cause damages requiring compensation, affected parties may initiate lawsuits before competent courts in accordance with civil procedure laws to claim damages under the Civil Code.

- Investigative bodies – Procuracies: In cases involving serious criminal conduct, such as unlawful gain through computer or telecommunications networks or causing substantial damage, criminal proceedings may be initiated under Article 288 of the Penal Code 2015. In such cases, the police authorities conduct investigations and refer cases to the Procuracy for prosecution.

3. Consequences of unauthorized use of confidential information

Unauthorized use of confidential information may result in significant consequences across multiple dimensions:

- Legal consequences

  • Labor disciplinary measures: Employees may be dismissed under Article 125 of the Labor Code 2019.
  • Administrative sanctions: Individuals may be fined up to 150 million VND, and organizations up to 300 million VND, along with compulsory disgorgement of unlawful profits.
  • Criminal liability: In serious cases, offenders may be prosecuted under Article 288 of the Penal Code 2015, with sanctions including imprisonment of up to 3 years or fines of up to 200 million VND.

- Business consequences

  • Loss of competitive advantage: Disclosure of technical know-how, technology, or business strategies may lose market position.
  • Reputational damage and loss of trust: Customers and partners may lose confidence, resulting in contract termination or suspension of cooperation.
  • Significant financial losses: Enterprises may incur substantial costs to remedy damages, compensate affected parties, or reinvest in security systems.

- Social consequences

  • Market disruption: Leakage of confidential information may lead to unfair competition and market instability.
  • Impact on consumers: Disclosure of product information or customer data may result in infringement of consumer rights, including breaches of personal data.

Accordingly, unauthorized use of confidential information not only leads to legal liability but also entails serious business and societal consequences, with long-term impacts on both enterprises and consumers.

IV. Questions on unauthorized use of confidential information

1. What types of information are legally protected?

Under Article 84 of the Law on Intellectual Property 2005 (as amended in 2009, 2019, and 2022), the law primarily protects trade secrets as information that provides competitive advantages to enterprises.

Such information may include technical know-how, technologies, production formulas, research data; business strategies, production plans, marketing plans; customer and supplier lists; and other commercially valuable data.

Trade secrets are protected if they satisfy the following conditions:

  • They are not common knowledge or easily accessible;
  • Their use provides a competitive advantage;
  • The owner has implemented necessary measures to maintain confidentiality.

However, according to Article 85 of the same law, certain types of information are not protected as trade secrets, including personal secrets, state management secrets, national defense and security secrets, and other confidential information unrelated to business activities.

2. Under which provisions may criminal liability arise?

Under the Penal Code 2015 (as amended in 2017), unauthorized use or disclosure of confidential information may result in criminal liability in specific cases:

  • Article 288: Offense of illegally providing or using information on computer or telecommunications networks applicable where the conduct involves IT systems, with sanctions of up to 7 years’ imprisonment.
  • Article 337: Offense of intentional disclosure of state secrets or misappropriation, trading, or destruction of state secret documents applicable where state secrets are involved, with sanctions of up to 15 years’ imprisonment.

Additionally, where serious harm is caused, liability may also arise under other offenses such as fraud (Article 174) or infringement of industrial property rights (Article 226).

Thus, unauthorized use of confidential information may be subject to criminal prosecution depending on the type of information and the resulting consequences.

3. Is a person who discloses confidential information liable in the same way as the user?

A person who discloses confidential information for unlawful use may take legal liability equivalent to that of the direct user, specifically:

  • Civil liability: The disclosing party may be required to compensate damages for breach of confidentiality obligations.
  • Administrative liability: Fines may reach up to 300 million VND for organizations and 150 million VND for individuals under Article 16 of Decree No. 75/2019/ND-CP.
  • Criminal liability: Where serious consequences arise or the conduct involves information systems, liability may be imposed under Article 288 of the Penal Code 2015, with legal measures ranging from non-custodial reform to imprisonment of up to 3 years or more depending on severity.

Accordingly, the disclosing party may incur independent as well as joint liability comparable to that of the direct user across civil, administrative, and criminal aspects.

4. Is using confidential information obtained from others still illegal?

Even if confidential information is obtained from another person, its unauthorized use still constitutes a legal violation:

  • Under Article 45 of the Law on Competition 2018, unauthorized use of trade secrets constitutes prohibited unfair competition.
  • Article 127 of the Law on Intellectual Property 2005 further provides that the use or disclosure of trade secrets, even when knowingly obtained from another person, is considered an infringement.

Therefore, regardless of whether the user directly disclosed the information, unauthorized use remains unlawful and may be subject to civil, administrative, or criminal sanctions depending on severity and consequences.

5. Are there provisions on joint liability?

Pursuant to Clause 1, Article 360 of the Civil Code 2015, any person at fault causing damage, whether directly or indirectly, must compensate for such damage unless otherwise agreed.

Accordingly, where multiple parties are involved in the unauthorized use of confidential information, they may be held jointly liable for the entire damage to ensure protection of the rights and interests of the injured party.

V. Seeking a reputable lawyer for matters related to unauthorized use of confidential information

If you are facing difficulties or concerns related to the unauthorized use of confidential information, it is advisable to seek assistance from qualified legal professionals to obtain timely advice and protection of your rights. With extensive experience in handling cases involving trade secrets, intellectual property, and corporate disputes, NPLaw is a reputable legal service provider ready to accompany you in delivering effective and secure legal solutions.