1. A Common Challenge: Real Damages, but Difficult to Prove

Many businesses are aware that their IP rights have been infringed, for example:

• Unauthorized use of trademarks or packaging
• Infringement of patents or industrial designs
• Acts of unfair competition

However, when initiating legal action or seeking compensation, they often face a major obstacle:

The inability to accurately quantify damages, including:

• Loss of revenue
• Loss of profit
• Commercial or reputational harm

As a result:

• Compensation claims may not reflect the actual extent of damage
• The effectiveness of IP enforcement is significantly limited

2. Key Update under the Amended IP Law (Effective from April 1, 2026)

Under the amended Intellectual Property Law of 2025 (effective April 1, 2026):

Courts are empowered to determine the amount of damages, even where:

• Actual damages cannot be precisely determined
• The plaintiff cannot fully prove the extent of losses

This represents a significant legal development, addressing a longstanding bottleneck in IP litigation.

3. Compensation May Reach Up to VND 1 Billion

Under the new regulation:

The court-determined compensation may reach up to VND 1,000,000,000

Compared to the previous framework, this represents:

• A substantial increase (approximately doubled)
  
• A stronger policy direction toward enhanced IP protection

4. Practical Implications for Businesses

This new provision brings several notable benefits:

• Reduced burden of proof: Businesses are no longer required to fully quantify and prove actual damages — a task that is often impractical.
• Increased likelihood of compensation: Courts may proactively determine a reasonable compensation amount based on the circumstances.
• Enhanced enforcement effectiveness: Particularly in the digital environment, where infringement occurs rapidly and is difficult to track.

5. Important Considerations

Despite being a positive development, this provision must be applied with caution:

⚠️The determination of damages still depends on:

• Judicial discretion
• The nature and severity of the infringement
• Relevant case-specific factors

Furthermore, there is a need for:

• Detailed implementing guidelines
• Consistency in judicial practice

To ensure transparency and fairness

6. The Role of Legal Advisory in Compensation Claims

To effectively leverage this new provision, businesses should:

• Properly assess the infringement
  
• Develop a sound compensation strategy
  
• Prepare structured and well-supported documentation

Professional legal support plays a critical role in this process

7. Support Services from A Dong IP

With extensive experience in intellectual property matters, A Dong IP provides:

• Assessment of IP infringement
• Strategic advice on compensation claims
• Representation before competent authorities

Support in dispute resolution and rights enforcement

Conclusion

The inability to prove damages is no longer an absolute barrier to claiming compensation.

However, to secure appropriate compensation and effectively protect their rights, businesses must adopt a clear and well-structured legal strategy from the outset.

A DONG IP – TRANSLATION – CONSULTANCY COMPANY

Room F2&F3, No. 2 Phung Khac Khoan Street, Sai Gon Ward, Ho Chi Minh City, Viet Nam

Tel: 84-28 3926 0120 – 39260125

Email: consultant@a-dong.com.vn; info@a-dong.com.vn

Website: a-dong.com.vn