Vietnam's New Decree 46/2024/ND-CP on Sanctioning Administrative Violations in the Field of Industrial Property

On May 4th, 2024, the Government issued Decree No. 46/2024/ND-CP (“Decree 46”), which amends and supplements several articles of Decree No. 99/2013/ND-CP dated August 29, 2013, concerning sanctioning administrative violations in the field of industrial property. Decree 46 takes effect from 1 July 2024.

Compared to Decree 99, Decree 46 introduces some notable new points:

• Addition of Temporary Domain Name Seizure Measure

Decree 46 adds Article 3a, “Applying preventive measures and ensuring administrative violation handling,” which introduces temporary domain name seizure as a preventive measure for violations involving registering, holding, or using domain names that are identical or confusingly similar to protected trademarks, geographical indications, or trade names of others. This applies to situations where the intent is to engage in cybersquatting or exploit/damage the reputation of corresponding trademarks, trade names, or geographical indications.

• Revision of Regulations on Sealing and Temporary Seizure of Exhibits and Violating Means

Decree 46 amends Article 9 of Decree 99, introducing specific fine levels for violations related to seized exhibits. These include:

* 2-5 million VND (~ USD 80-200) for failing to maintain, removing, or destroying seals on seized exhibits.

* 5-10 million VND (~ USD 200-400) for violations such as altering but not consuming, dispersing, or destroying exhibits under inspection or seizure.

* 15-30 million VND (~ USD 600-1200) for violations such as consuming, dispersing, or destroying exhibits under inspection or seizure.

• Fines for Using Patents or Industrial Designs without Compensation

Decree 46 adds provisions to Articles 10 and 11 of Decree 99, imposing fines of 20-30 million VND (~ USD 800-1000) for using patents, utility solutions, design or layout designs without paying compensation as per temporary rights regulations in Article 131 of the Intellectual Property Law.

Decree 46/2024 represents a significant step forward for Vietnam in its efforts to establish a robust and efficient intellectual property regime. By strengthening protection, simplifying procedures, and promoting innovation, the decree creates a more conducive environment for businesses and investors, ultimately contributing to Vietnam’s economic development and technological advancement.

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