Administrative Violations in Industrial Property: Fine May Be up to VND250 Million

Source: Pano feed

This is a maximum fine for individuals infringing on industrial property stipulated in Decree 99/2013/ND-CP of the Government of Vietnam dated August 29, 2013 on sanctioning of administrative violations in the field of industrial property. In general, fines on administrative violations in industrial property have been relieved from current regulations. The new decree will take effect from October 15, 2013.


Fines adjusted


The maximum fine for individuals is VND250 million. For a similar violation, the fine for organisations is double that imposed on individuals, the maximum fine is VND500 million.


Some acts of violation are adjusted to suit the new reality. For example, the act of modifying, erasing or falsifying contents of protection documents or industrial property proof documents is fined VND3-5 million, lower than VND5-10 million as stipulated in Decree 97/2010/ND-CP in effect. Similarly, the fine on the act of providing wrong information and evidence in the process of carrying out procedures concerning verification, recognition, certification, modification, extension and invalidation of protection documents or proposing State agencies to decide the transfer of patent uses is VND5-10 million, lower than VND10-15 million according to current regulations.


The new ruling specifies infringement of patents, utility solutions and layout designs like sale, offer, transportation, keeping and display of violated items; exploitation of functions of violated items or products made from infringed processes for commercial purposes are subject to warning or fine from VND500,000 to VND2 million if the value of infringed items is up to VND3 million; fine from VND2 million to VND4 million if the value of infringed items is VND3-5 million, and fine up to VND200-250 million if infringed items are valued over VND500 million.


This range of fines is relieved from that in Decree 97/2010/ND-CP. The fine rate is VND2-4 million if the value of infringed items is up to VND5 million and the fine is up to VND500 million if the value of infringed goods is worth over VND500 million.


Similarly, the acts of selling, offering, transporting, displaying for sale, counterfeiting marks and geographical indications, or hiring others to do these acts, shall be fined VND4-8 million if the value of infringed items is up to VND5 million, and the penalty is VND8-12 million if the value of violated items is VND5-10 million. And, there are many other levels of fines.


Apart from major penalties of fine and warning, acts of violation are also be subject to additional sanctions or remedial measures such as confiscation of materials and instruments, revocation of career practising certificates or suspension of production and business activities for 1-3 months.


More fining power to customs authorities


Under the new decree, customs authorities are entitled to impose sanctions on violations in merchandise transit and importation specified in Articles 6, 9, 10, 11, 12, 13 and 14 of this Decree.


Accordingly, head of customs branches and head of inspection branches are entitled to issue a warning or impose a fine of VND5 million.


Head of customs branches, head of post-clearance examination branches, and head of inspection branches affiliated to provincial/municipal customs departments (hereinafter referred to as the Customs Department), head of smuggling control teams, head of customs procedure teams, head of intellectual property protection teams, head of sea patrol teams affiliated to the Smuggling Prevention Inspection Department under the General Department of Customs are entitled to issue a warning and impose a fine of up to VND25 million; confiscate violating materials and means with value not exceeding VND25 million; and impose remedial measures specified in Points a, b, c, d, e, g and h, Clause 3, Article 3 of this Decree.


Head of Smuggling Prevention Investigation Department, head of Post-clearance Inspection Department under the General Department of Customs, and head of Customs Department have the right to deliver a warning, fine VND50 million, revoke professional licences or certificates with specific durations of time, or suspend production and business of violated goods and services with specific durations of time; confiscate material evidences and means with value not exceeding VND50 million; and impose remedies to consequences specified at Points a, b, c, d, e, g and h, Clause 3, Article 3 of this Decree.


The General Director of the General Department of Customs is empowered to issue a warning and impose a fine of up to VND250 million; confiscate material evidences and means used for administrative violation; impose remedial measures specified at Points a, b, c, d, đ, e, g and h, Clause 3, Article 3 of this Decree. In addition to these sanctions, violating organisations and individuals may be forced to bear additional punishments, or apply one or more remedial measures to address consequences caused by their violations.

Nguyen Thanh




Đăng ký: VietNam News

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