May 16, 2024
On May 4, 2024, the Vietnamese government issued Decree No. 46/2024/ND-CP (“Decree 46”) amending and supplementing certain articles of Decree No. 99/2013/ND-CP dated August 29, 2013, on administrative sanctions in industrial property, as amended and supplemented in 2021 (“Decree 99”). Decree 46, which will come into force on July 1, 2024, is designed to bring Decree 99 in line with the amended IP Law of 2022. Some of the notable amendments of Decree 46 are discussed below. New Infringing Acts Decree 46 added the following new infringing acts subject to sanctions, which had not been set out in the former decree: Use of patents, utility solutions, layout designs, or industrial designs without paying compensation according to the provisions on temporary rights specified in Article 131 of the amended IP Law. Accepting a trademark license not in the form of a written contract in the case of using the licensed trademark on goods or packaging. Failure to notify clients of costs, charges, and fees related to procedures for establishing and protecting industrial property rights. Deceiving clients in the course of entering into and performing industrial property representative service contracts, but not to the extent of criminal prosecution, or forcing customers to enter into and perform industrial property representative service contracts. Although these acts are not common occurrences, it is nevertheless important to have clear regulations in order to ensure consistency with the amended IP Law and overcome difficulties and obstacles if such acts are committed in practice. Amendments and Supplements Decree 46 adopted amendments and supplements to main sanctions, additional sanctions, and remedial measures, specifically: The monetary fine imposed for violations against trade secrets is VND 50 million to VND 100 million (approx. USD 2,000 – USD 4,000), a large increase compared to the VND 5 million to VND 15