CLAIMING DAMAGES IN INTELLECTUAL PROPERTY CASES: COMPENSATION OF UP TO VND 1 BILLION WITHOUT FULL PROOF OF LOSS

1. A Common Challenge: Actual Damage Exists, but Is Difficult to Prove

Many businesses clearly recognize that their intellectual property rights have been infringed, for example:

• Unauthorized use or imitation of trademarks and packaging;
• Unauthorized exploitation of inventions (patents) or industrial designs;
• Acts of unfair competition.

However, when initiating legal proceedings or seeking damages, businesses often face difficulties in:

• Determining lost revenue;
• Calculating diminished profits;
• Proving commercial losses and business harm.

As a result:

• Damage claims may fail to reflect the actual extent of the loss suffered;
• The effectiveness of intellectual property rights enforcement is significantly undermined.

2. An Important Amendment Under the Intellectual Property Law (Effective from April 1, 2026)

Pursuant to the amended Intellectual Property Law of 2025, effective from April 1, 2026:

The Court is empowered to determine and award damages even where:

• The actual damage cannot be precisely determined; or
• The rights holder is unable to fully substantiate the extent of the loss suffered.

This amendment represents a significant development in addressing one of the most persistent challenges in intellectual property litigation and enforcement.

3. Court-Awarded Damages May Reach Up to VND 1 Billion

Under the new provisions:

The amount of damages determined by the Court may be up to VND 1,000,000,000.

Compared with the previous legal framework, this represents:

• A substantial increase (doubling the previous statutory cap); and
• Clear evidence of Vietnam’s strengthened commitment to the protection and enforcement of intellectual property rights.

4. Practical Implications for Businesses

The new provisions offer several significant advantages:

Reduced Burden of Proof

Rights holders are no longer required to fully and accurately quantify their losses, which is often difficult in practice.

Greater Likelihood of Obtaining Compensation

The Court may proactively assess the circumstances of the case and determine an appropriate level of damages.

Enhanced Enforcement of Intellectual Property Rights

This is particularly valuable in the digital environment, where infringing activities occur rapidly and the resulting damage is often difficult to monitor and quantify.

5. Key Considerations

While the amendment is a positive development, its application should be approached carefully.

The amount of damages awarded will depend on:

• The Court’s assessment of the case;
• The nature and severity of the infringement;
• The specific facts and circumstances of each dispute.

In addition, it is important that:

• Detailed implementing guidance be issued by the competent authorities; and
• Consistency be maintained across judicial practice.

Such measures are essential to ensure transparency, predictability, and fairness.

6. The Importance of Legal Counsel in Damage Claims

To maximize the benefits of the new provisions, businesses should:

• Conduct a comprehensive assessment of the infringing acts;
• Develop an appropriate damages and enforcement strategy;
• Prepare supporting documentation and evidence in a systematic manner.

The involvement of experienced intellectual property counsel is often a key factor in achieving effective protection and enforcement of rights.

7. Services Provided by ADVN Law Firm

With extensive experience in intellectual property matters, A.D.V.N Law Firm LLC (ADVN Law Firm) provides:

• Assessment of intellectual property rights infringements;
• Legal advice and strategic planning for damage claims;
• Representation before competent authorities;
• Assistance in dispute resolution and protection of clients’ lawful rights and interests.

Conclusion

The inability to fully prove damages is no longer an absolute barrier to obtaining compensation in intellectual property disputes.

Nevertheless, securing an appropriate damages award and effectively protecting one’s rights requires a sound legal strategy from the outset.

Contact Information:

Email: advnlaw@gmail.com
Website: advnlaw.vn