UNABLE TO PROVE DAMAGES – CAN YOU STILL CLAIM COMPENSATION OF UP TO VND 1 BILLION?

1. A Difficult Problem: “Real” Damage but No Proof

Many businesses clearly recognize that their IP rights are being infringed, for example:

Unauthorized copying of trademarks and packaging
Illegal use of inventions and industrial designs
Acts of unfair competition
However, when initiating legal action or claiming damages, businesses often face difficulties in:

Determining lost revenue
Calculating reduced profits
Proving commercial losses
As a result:

Compensation claims often fall short of expectations
The effectiveness of IP protection is significantly limited

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

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

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

Actual damages cannot be determined
Losses cannot be fully proven
This is a significant advancement, helping to remove a long-standing bottleneck in IP dispute resolution.

3. Compensation May Reach up to VND 1 Billion

Under the new regulation:

Court-determined damages may be awarded up to VND 1,000,000,000

Compared to previous regulations, this represents:

A substantial increase (doubling the previous cap)
A clear indication of stronger IP protection in Vietnam

4. Practical Implications for Businesses

The new regulation offers several key benefits:

- Reduced Burden of Proof

Businesses are no longer required to fully and precisely prove damages – a task that is often extremely difficult in practice.

- Increased Chances of Compensation

Courts may proactively assess and determine reasonable compensation.

- Enhanced Enforcement Effectiveness

Especially in the digital environment, where infringements occur rapidly and damages are difficult to quantify.

5. Important Considerations

Despite being a positive development, the regulation must be applied cautiously:

- The determination of damages still depends on:

The court’s assessment
The nature and severity of the infringement
Case-specific factors
- In addition, it requires:

Detailed guidance from competent authorities
Consistency in judicial practice
- To ensure transparency and fairness

6. The Role of Legal Counsel in Damage Claims

To effectively leverage the new regulation, businesses should:

Accurately assess the infringing acts
Develop an appropriate compensation strategy
Prepare documentation and evidence systematically
Engaging experienced legal counsel is a key factor in achieving effective IP protection.

7. Legal Services from ADVN Law Firm

With extensive experience in intellectual property, ADVN Law Firm LLC provides:

Assessment of IP infringement
Legal advice and strategy for compensation claims
Representation before competent authorities
Dispute resolution and protection of clients’ lawful rights and interests

Conclusion

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

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