Decree No. 12/1999/NĐ-CP On Administrative Sanctions for Violations in the Field of Industrial Property

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THE GOVERNMENT

Pursuant to the Law on the Organization of the Government dated September 30, 1992;

Based on the Civil Code dated October 28, 1995;

Pursuant to the Ordinance on Handling Administrative Violations dated July 6, 1995;

To enhance the effectiveness of protecting industrial property rights of organizations and individuals, to protect the legitimate rights and interests of consumers, and contribute to combating the production and sale of counterfeit goods and commercial fraud;

At the proposal of the Minister of Science, Technology, and Environment,

DECREE:

Chapter 1:

GENERAL PROVISIONS

Article 1. Explanation of terms

The terms in this Decree shall be understood as follows:

1. "Industrial property object" means: invention, utility model, industrial design, trademark (including service mark), geographical indication.

2. "Industrial property owner" means: holder of the protection certificate, international trademark registration owner, or the person legally transferred the industrial property ownership right over the protected industrial property object.

3. "Protection certificate" means: Patent Certificate for Invention, Patent Certificate for Utility Model, Patent Certificate for Industrial Design, Certificate of Registration for Trademark, Certificate of Right to Use Geographical Indication.

4. "Violation factor" means:

Signs that are identical or similar causing confusion with registered trademarks or geographical indications;

Signs or indications violating regulations on the protection of industrial property rights and industrial property obligations;

Parts of products, products, or production processes identical to those protected as inventions or utility models;

Products having an external shape as an industrial design or containing one or more parts constituting basic components of a protected industrial design.

Article 2. Scope and Applicability

This Decree specifies the specific acts of violation, forms, levels, procedures, and authority for imposing administrative penalties in the field of protection and state management of industrial property.

Any organization or individual committing intentional or unintentional violations of regulations on the protection and state management of industrial property, which do not warrant criminal prosecution, shall be subject to administrative penalties under the Administrative Violation Handling Law and this Decree.

Foreign organizations and individuals committing administrative violations in the field of protection and state management of industrial property within the territory of the Socialist Republic of Vietnam shall also be subject to penalties under this Decree, except where relevant international treaties to which Vietnam is a party provide otherwise.

Article 3. Principles for applying types of penalties and fine amounts

For each act of administrative violation in the field of industrial property, the violator must be subject to one of two main types of penalties: warning or fine.

A warning penalty shall be applied in cases of unintentional violations; minor violations committed for the first time and with mitigating circumstances.

In cases of fines, the amount of the fine must correspond to the nature and degree of the violation. If the violation has mitigating circumstances, a lower fine amount shall be applied but not less than the minimum level of the fine range. If the violation has aggravating circumstances, a higher fine amount shall be applied but not exceeding the maximum level of the fine range.

2. Depending on the nature and degree of the violation, the violator may also be subject to one or more supplementary penalties as follows:

a) Suspension of the right to use business licenses or representation services for industrial property activities for a limited or unlimited period.

b) Confiscation of contraband items and means of administrative violation.

3. Along with the penalties prescribed in Clause 1 and Clause 2 of this Article, in specific cases, the violator may also be subject to one or more measures as follows:

a) Compelling removal of violation factors from products or marketing tools; compelling correction of misleading information causing the violation; compelling fulfillment of industrial property obligations; compelling addition of industrial property indicators.

b) Compelling destruction of items carrying violation factors, substandard goods harmful to human health.

c) Compelling compensation for damages caused by administrative violations.

Compensation for damages caused by administrative violations in the field of industrial property shall be carried out based on mutual agreement between the party causing the damage and the damaged party. For material damages caused by administrative violations in the field of industrial property up to VND 1,000,000, if the parties cannot reach an agreement, the compensation amount shall be decided by the competent authority imposing the penalty. For damages exceeding VND 1,000,000, if the parties cannot reach an agreement, they shall be resolved through civil litigation procedures.

Supplementary penalties and measures prescribed in Clauses 2 and 3 of this Article shall be applied when necessary to thoroughly address violations, eliminate causes and conditions for continued violations, and mitigate consequences caused by administrative violations in the field of industrial property.

Article 4. Statute of limitations for penalties

The statute of limitations for administrative penalties in the field of industrial property is one year from the date of the violation. For violations involving the production and sale of goods infringing upon registered trademarks, geographical indications, or industrial designs, the statute of limitations is two years from the date of the violation. If these periods have passed, the organization or individual who committed the violation will not be penalized, but may still be compelled to destroy harmful goods.

For individuals committing violations related to the protection of industrial property rights and subsequently being prosecuted, indicted for producing or selling counterfeit goods, or having a decision to bring the case to trial under criminal proceedings, followed by a decision to terminate the investigation or close the case, the statute of limitations for administrative penalties is three months from the date of such decisions.

If within the periods specified in Clauses 1 and 2 of this Article, the violator commits new violations in the field of industrial property, they shall be penalized for each separate violation, with the statute of limitations calculated from the date of the new violation.

If within the periods specified in Clauses 1 and 2 of this Article, the violator intentionally evades or obstructs the imposition of penalties, the statute of limitations shall be calculated from the date the violator ceases such evasion or obstruction.

Chapter 2:

VIOLATIONS AND FORMS OF PENALTIES

Article 5. Acts violating regulations on procedures for establishing and exercising industrial property rights and procedures for applying for service representation of industrial property rights

1\. Warning or imposing a fine from VND 200,000 to VND 1,000,000 on organizations or individuals committing one of the following acts:

a\. Conducting procedures to establish or exercise industrial property rights to evade or commit prohibited or restricted acts under other laws;

b\. Conducting procedures to establish or exercise industrial property rights with the aim of unfair competition, illegal monopoly, market control, elimination of industrial property objects, restriction or reduction of the scope of protection of others' industrial property rights, exploitation or degradation of the commercial reputation of other businesses;

c\. Providing false information or evidence in procedures for complaints regarding industrial property rights;

2\. Imposing a fine from VND 2,000,000 to VND 10,000,000 on organizations or individuals committing one of the following acts:

a\. Altering, erasing, forging certificates of protection or certificates of industrial property rights protection but not reaching the level of criminal liability;

b\. Forging documents or deceit in procedures for applying for, extending, amending certificates of protection, requesting approval, registering contracts for transferring industrial property rights, applying for non-voluntary licenses but not reaching the level of criminal liability;

c\. Forging documents or deceit in procedures for applying for, extending Certificates of Service Organizations Representing Industrial Property Rights, Representative Cards of Industrial Property Rights but not reaching the level of criminal liability;

3. Additional forms of punishment:

a\. Revoking business operation permits for one to three months for acts stipulated in Clause 1; from three to six months for acts stipulated in Clause 2 of this Article;

b\. Confiscating documents, materials, certificates of protection, certificates of industrial property rights protection that have been altered or forged for acts stipulated in Clause 2 of this Article;

c\. Confiscating certificates of protection issued to organizations or individuals committing acts stipulated in Points a and b of Clause 1 of this Article;

Article 6. Acts violating regulations on indications protecting industrial property rights

1\. Warning or imposing a fine from VND 500,000 to VND 2,000,000 on organizations or individuals committing one of the following acts:

a\. Giving false indication (including indication in the form of symbols) about the owner of industrial property;

b\. Giving false indication (including indication in the form of symbols) about products or services containing elements protected by industrial property rights;

c\. Using trademarks, geographical indications, designs not in accordance with the registered models but indicating that such trademarks, geographical indications, designs have been registered for protection of industrial property rights;

d\. Giving false indication about products being produced or services being performed under license;

e\. Giving false indication about the inventor of an invention, utility solution, design;

2\. Warning or imposing a fine from VND 1,000,000 to VND 5,000,000 on organizations or individuals committing one of the following acts:

a\. Not indicating the production of products or performance of services under license for products or services produced or performed under license;

b\. Not marking or marking unclearly, incompletely on products the phrase "produced in Vietnam" for products produced in Vietnam under foreign licenses; products bearing trademarks causing misunderstanding that goods are foreign or of foreign origin;

3. Additional forms of punishment:

a\. Revoking business operation permits for one to three months for acts stipulated in Clauses 1 and 2 of this Article;

b\. Confiscating contraband items, means of administrative violations for acts stipulated in Clauses 1 and 2 of this Article;

4\. In addition to the forms of punishment prescribed in Clauses 1, 2, and 3 of this Article, violators may also be subject to one or more of the following measures:

a\. Compelling removal of infringing elements on products, business means for acts stipulated in Clause 1 of this Article;

b\. Compelling supplementation of indications for acts stipulated in Clause 2 of this Article;

Article 7. Acts violating regulations on activities of consulting and representing industrial property rights

1\. Warning or imposing a fine from VND 500,000 to VND 2,000,000 on Service Organizations Representing Industrial Property Rights, Representatives of Industrial Property Rights performing one of the following acts:

a\. Intentionally providing false advice or notification about legal provisions on industrial property, information on industrial property activities causing damage to legitimate owners of industrial property rights;

b\. Obstructing the normal process of establishing and exercising industrial property rights causing damage to legitimate owners of industrial property rights;

c\. Providing false advice or guidance causing confusion or misunderstanding about the functions, scope of authority, responsibilities of Service Organizations Representing Industrial Property Rights, Representatives of Industrial Property Rights;

d\. Charging clients national fees or service fees related to procedures for establishing and protecting industrial property rights not in accordance with regulations;

e\. Deceiving or coercing clients in the conclusion of service representation contracts for industrial property rights but not reaching the level of criminal liability;

g\. Simultaneously representing conflicting parties in disputes over industrial property rights causing damage to legitimate owners of industrial property rights;

h\. Lending or using cards for purposes not within their functions, using licenses or cards that are no longer valid;

i\. Failing to provide information upon request of competent state agencies or providing false information about issues related to service representation activities for industrial property rights;

2\. Warning or imposing a fine from VND 1,000,000 to VND 5,000,000 on organizations or individuals conducting consulting or representation services for industrial property rights in establishing and exercising industrial property rights without a valid license for service representation of industrial property rights.

3. A fine of VND 2,000,000 to VND 10,000,000 shall be imposed on organizations and individuals who alter, erase, forge the Certificate of Industrial Property Service Representation Organization or the Industrial Property Representative Card but have not reached the level of criminal prosecution.

4. A fine of VND 5,000,000 to VND 20,000,000 shall be imposed on industrial property service representation organizations and industrial property representatives who commit any of the following acts:

a) Performing tasks related to industrial property activities beyond their authorized functions, duties, and powers;

b) Impersonating state management agencies or personnel thereof to conduct industrial property service representation activities but have not reached the level of criminal prosecution.

5. Additional forms of punishment:

a) Revocation of business license usage rights for one to three months for violations stipulated in Clause 2 of this Article;

b) Revocation of industrial property service representation activity license usage rights for one to three months for violations stipulated in Clause 1; from three to six months for violations stipulated in Clause 3 of this Article;

c) Revocation of industrial property service representation activity license usage rights for six months to one year or indefinitely for violations stipulated in Clause 4 of this Article;

d) Confiscation of forged documents for violations stipulated in Clause 3 of this Article.

6. In addition to the penalties prescribed in Clauses 1, 2, 3, 4, and 5 of this Article, violators may also be subject to one or more of the following measures:

a) Compelling correction of false information for violations stipulated in points a and c of Clause 1 of this Article;

b) Compelling compensation for damages caused by administrative violations for violations stipulated in Clauses 1, 2, and 3 of this Article.

Article 8. Violations concerning obligations under industrial property regulations

1. Warning or a fine of VND 1,000,000 to VND 5,000,000 shall be imposed on organizations and individuals who commit any of the following acts:

a) Failing to perform the obligation to establish and register contracts for the transfer of industrial property rights in accordance with the form, content, and procedures prescribed by industrial property laws;

b) Failing to perform the obligation to register trademarks for products and services in sectors where trademark registration is mandatory.

2. A fine of VND 2,000,000 to VND 10,000,000 shall be imposed on organizations and individuals who use signs that mislead consumers about the origin, features, utility, quality, or value of goods and services as trademarks.

3. Warning or a fine of VND 500,000 to VND 2,000,000 shall be imposed on organizations and individuals who fail to fulfill the obligation to pay remuneration to the owner of an invention, utility model, or industrial design according to the decision of the competent state authority regarding non-voluntary licensing.

4. Additional forms of administrative punishment:

a) Revocation of business license usage rights for one to three months for violations stipulated in Clause 1; from three months to one year or indefinitely for violations stipulated in Clause 2 of this Article;

b) Confiscation of contraband items and means of administrative violation for violations stipulated in point b of Clause 1 and Clause 2 of this Article.

5. In addition to the penalties prescribed in Clauses 1, 2, 3, and 4 of this Article, violators may also be subject to one or more of the following measures:

a) Compelling compliance with industrial property obligations for violations stipulated in points a and b of Clause 1 and Clause 3 of this Article; compelling removal of infringing elements from goods and business means for violations stipulated in Clause 2 of this Article;

b) Compelling compensation for damages caused by administrative violations for violations stipulated in Clauses 1, 2, and 3 of this Article.

Article 9. Violations concerning protection of industrial property rights

1. Warning or a fine of VND 5,000,000 to VND 20,000,000 shall be imposed on organizations and individuals who are not the owners of industrial property or prior users (for inventions, utility models, industrial designs) who commit any of the following acts for commercial purposes without permission from the owner of the industrial property or a license issued by the Minister of Science and Technology and Environment for non-voluntary licensing:

a) Producing (manufacturing, processing, assembling, refining, packaging) products or parts of products protected as inventions, utility models, or industrial designs;

b) Applying processes protected as inventions or utility models;

c) Exploiting products or parts of products protected as inventions or utility models;

d) Putting into circulation (selling, transporting), advertising (displayed on media, signs, business means, other goods, service means, sales offers, promotions, transaction documents) to sell, offer for sale, store for sale products or parts of products protected as inventions or utility models or produced using processes protected as inventions or utility models;

e) Importing or exporting products or parts of products protected as inventions or utility models or products produced using processes protected as inventions or utility models;

g) Putting into circulation (selling, transporting), advertising (displayed on media, signs, business means, other goods, service means, sales offers, promotions, transaction documents) to sell, offer for sale, store for sale the following types of products:

Products or parts of products having an exterior design protected as an industrial design or containing one or more components constituting the basic design elements of an industrial design that is protected;

Products or parts of products bearing marks or packaging bearing marks that are identical or similar enough to cause confusion with trademarks or geographical indications protected for goods of the same or similar type, including cases where the geographical indication is translated into another language or accompanied by terms such as "type," "style," "after," or similar terms;

h) Importing or exporting the types of products specified in point g of this clause;

i) Affix (in any form such as printing, pasting, attaching, casting, stamping, etc.) on the product or packaging thereof a mark that is identical or similar enough to cause confusion with a trademark, geographical indication for goods protected for the same or similar goods;

k) Carry out services under a name, symbol, or affix on service means a mark that is identical or similar enough to cause confusion with a protected trademark for the same or similar services;

2. Imposing a fine of from VND 20,000,000 to VND 50,000,000 on organizations and individuals who commit acts stipulated in Clause 1 of this Article in case of recidivism, and imposing a fine of from VND 50,000,000 to VND 100,000,000 in case of organized violation on a large scale but not reaching the level of criminal prosecution;

3. Imposing a fine of from VND 2,000,000 to VND 10,000,000 on organizations and individuals who commit any of the following acts: producing, selling, transporting, storing for sale, importing, exporting stickers, product labels, trademark samples, product packaging bearing marks that are identical or similar enough to cause confusion with trademarks, geographical indications for goods, or industrial designs currently being protected;

4. Additional forms of administrative punishment:

a) Revoking the business license usage right for from one to six months for the acts stipulated in Clauses 1 and 3; from six months to one year or indefinitely for the acts stipulated in Clause 2 of this Article;

b) Seizing the objects and means of administrative violations for the acts stipulated in Clauses 1, 2, and 3 of this Article;

5. In addition to the penalties prescribed in Clauses 1, 2, 3, and 4 of this Article, violators may also be subject to one or more of the following measures:

a) Ordering the removal of the violating elements on products, goods, business means for the acts stipulated in Clauses 1 and 2 of this Article;

b) Ordering compensation for damages caused by administrative violations for the acts stipulated in Clauses 1 and 2 of this Article;

c) Ordering the destruction of items carrying violating elements for the act stipulated in Clause 3 of this Article; ordering the destruction of substandard goods causing harm to human health for the acts stipulated in Clauses 1 and 2 of this Article;

Chapter 2:

AUTHORITY AND PROCEDURES FOR IMPOSING PENALTIES FOR VIOLATIONS

Article 10. Administrative penalty authority of people's committees at all levels

The People's Committees at all levels with the authority to impose administrative penalties for intellectual property rights violations occurring within their jurisdiction as provided for in Articles 6, 7, 8, and 9 of this Decree. The authority to impose administrative penalties of the People's Committees at all levels is specified as follows:

1. The Chairman of the People's Committee of districts, towns, cities under provinces has the power to:

a) To issue warnings;

b) Impose fines up to 10,000,000 VND;

d) Issue a decision to stop the violation and request the competent state agency to revoke the license;

d) Revoke the business license usage right issued by the district for a limited period or indefinitely;

e) Order the removal of the violating elements on products, goods, business means; order correction of false information causing violations;

g) Order compensation for damages caused by administrative violations;

h) Order the destruction of items carrying violating elements, substandard goods causing harm to human health;

2. The Chairman of the People's Committee of provinces, centrally-run cities has the power to:

a) To issue warnings;

b) Impose a fine up to VND 100,000,000.

c) Confiscate evidence and means used to commit administrative violations;

d) Revoke the business license usage right issued by the district or province for a limited period or indefinitely;

e) Order the removal of the violating elements on products, goods, business means; order correction of false information causing violations;

g) Order compensation for damages caused by administrative violations;

h) Order the destruction of items carrying violating elements, substandard goods causing harm to human health;

Article 11. The authority to impose administrative penalties of specialized inspection agencies for intellectual property rights

The specialized inspection agency for intellectual property rights under the Ministry of Science and Technology and Environment has the authority to impose administrative penalties for violations throughout the country. The specialized inspection agency for intellectual property rights under the Department of Science and Technology and Environment has the authority to impose penalties for violations occurring within its jurisdiction. The authority to impose administrative penalties of the specialized inspection agency for intellectual property rights is specified as follows:

1. A specialized inspector for intellectual property rights performing official duties has the power to:

a) To issue warnings;

b) To impose a fine up to two hundred thousand dong;

c) Seize property and means used for violation up to a value of VND 500,000;

d) Order the removal of the violating elements on products, goods, business means; order correction of false information causing violations;

e) Order compensation for damages caused by administrative violations;

g) Order the destruction of items carrying violating elements, substandard goods causing harm to human health;

2. The Head of the specialized inspection agency for intellectual property rights under the Department of Science and Technology and Environment has the power to:

a) To issue warnings;

b) Impose fines up to 10,000,000 VND;

3. The Head of the specialized inspection agency on safety and radiation control belonging to the Ministry of Science and Technology and Environment has the right to:

d) Order the removal of the violating elements on products, goods, business means; order correction of false information causing violations;

e) Order compensation for damages caused by administrative violations;

g) Order the destruction of items carrying violating elements, substandard goods causing harm to human health;

h) Request the Director of the Intellectual Property Office to revoke the usage right of the business activity license for intellectual property representation services;

3. The Head of the specialized inspection agency for intellectual property rights under the Ministry of Science and Technology and Environment has the power to:

a) To issue warnings;

b) To impose fines up to VND 20,000,000;

c) Revoke the usage right of the business activity license for intellectual property representation services for a limited period or indefinitely;

The Police, Customs, Market Management Agencies, Health Inspection, Labor Inspection, Environmental Inspection, and other specialized inspections have the authority to impose administrative penalties according to Articles 29, 30, 33, and 34 of the Administrative Violation Handling Ordinance for administrative violations related to safety and radiation control within the scope of management of their respective Ministries and sectors.

e) Order the removal of the violating elements on products, goods, business means; order correction of false information causing violations;

g) Order compensation for damages caused by administrative violations;

h) Order the destruction of items carrying violating elements, substandard goods causing harm to human health;

Article 12. The authority to impose administrative penalties of police agencies, customs agencies, market management agencies

The Heads of Public Security Departments at the county level, Heads of Economic Police Departments, Directors of Public Security Departments at the provincial level, Heads of National Economic Police Departments, Heads of Customs Control Teams at border gates, Directors of Provincial Customs Departments, Heads of Market Management Sub-departments, Heads of National Market Management Departments have the power to apply administrative penalty forms and other measures against violations of regulations on the protection of intellectual property rights in areas within their jurisdiction as stipulated in Clauses 1, 3, 4, and 5 of Article 9 of this Decree and Articles 29, 30, and 33 of the Administrative Violation Handling Ordinance;

Article 13. Responsibilities of state management agencies specializing in intellectual property rights in handling administrative violations

The Intellectual Property Office performs the function of state management over intellectual property rights according to the law and is responsible for coordinating with other central and local agencies with the authority to handle administrative violations of intellectual property rights when these agencies request.

Article 14. Procedures for imposing administrative penalties

1. When discovering acts of violation or signs of administrative violations concerning industrial property rights, the authorized authority to impose penalties must immediately issue an order to stop the act of violation and clearly explain to the organizations or individuals violating about the regulations on administrative penalties for industrial property rights violations as well as related laws on industrial property rights, and request the organizations or individuals to comply with the relevant laws on industrial property rights.

2. In cases where the violation is clearly identified as subject to a warning penalty, the authorized authority to impose penalties shall decide to impose the penalty at the place where the violation occurs, which may be in the form of a written document or without a written document.

In cases where it is considered that the violation may require a fine penalty, the authorized authority to impose penalties must prepare an administrative violation record in accordance with Article 47 of the Administrative Violation Handling Ordinance.

3. After preparing the administrative violation record, if it is deemed necessary to have an evaluation and conclusion from the specialized agency on industrial property rights, the authorized authority to impose penalties must send the case file, evidence of violation, and the request for appraisal in writing to the state management agency on industrial property rights at the local or central level in accordance with Article 13 of this Decree to provide an evaluation and conclusion on the violation and appropriate forms and measures to handle the violation.

Within ten days from the date of receiving the request document and evidence of violation, the state management agency on industrial property rights must provide its written opinion to the authorized authority to impose penalties.

4. Within fifteen days from the date of preparing the administrative violation record, the authorized authority must issue a penalty decision for the violation; in serious cases with many complex circumstances, this period may be extended but not exceeding thirty days. The decision to impose penalties and the content of the penalty decision must comply with the provisions of Article 48 of the Administrative Violation Handling Ordinance.

The effective date of the penalty decision is the date of signature or another date specified in the penalty decision but not later than fifteen days after the date of signing the penalty decision.

The penalty decision must be sent to the organization or individual being penalized within three days from the date of signature, and simultaneously must be sent to the National Office of Industrial Property for the National Office of Industrial Property to coordinate monitoring and implementing procedures for establishing, amending, suspending, or revoking protection certificates, certificates, and licenses related thereto.

Article 15. Fine Penalty Procedures

The imposition of fines must comply with the following provisions:

1. The amount of the fine, the deadline, and the place of payment must be clearly stated in the penalty decision;

2. Organizations or individuals fined must pay the fine within the deadline and at the place specified in the penalty decision and receive a receipt for the fine payment; when collecting the fine, a receipt for the fine collection issued by the Ministry of Finance must be used;

3. It is strictly prohibited for the person imposing the fine to collect the fine on the spot;

4. The collected fine must be deposited into the State budget through an account opened at the State Treasury;

5. A fine decision of VND 2,000,000 or more must be sent to the People's Procuracy at the same level.

Article 16. Procedure for Revoking the Right to Use Licenses

1. The procedure for revoking the right to use business licenses, service representation licenses for industrial property rights follows the provisions of Article 50 of the Administrative Violation Handling Ordinance.

The authorized authority to impose penalties applies the form of revoking the right to use a license in cases where organizations or individuals violating intentionally fail to stop the act of violation or have a high likelihood of continuing to violate after a cessation decision has been made. The authorized authority to impose penalties deciding to apply the form of revoking the right to use a license must clearly state in the penalty decision the name, type, number of the license, and the duration of revocation of the right to use the license, and at the same time must immediately notify the issuing agency of the license, specifying the reasons and the duration of the license being revoked.

If it is considered that the type of license or the duration of revocation exceeds their authority to decide, the authorized authority to impose penalties must issue a cessation order for the act of violation and request the higher-level authorized authority to impose penalties or the issuing agency of the license to revoke or recover the license.

2. The authorized authority to impose penalties decides to apply the form of temporarily revoking the right to use a license for cases where it is considered that organizations or individuals violating can implement measures to mitigate the consequences of the violation, stop the violation, and eliminate the causes and conditions for continued violation after a certain period of cessation of production, business, or service activities.

The duration of the temporary revocation of the right to use a license must fall within the prescribed period for the related violation and correspond to the necessary time for organizations or individuals violating to mitigate the consequences of the violation, fully comply with all requirements stipulated in the penalty decision, and eliminate the causes and conditions for continued violation. Upon completion of the duration specified in the penalty decision, the authorized authority that decided to revoke the right to use the license must return the license to the organization or individual using it.

3. The authorized authority to impose penalties decides to apply the form of permanently revoking the right to use a license or recommends the issuing agency of the license to recover the license in cases of large-scale or repeated violations.

In cases where it is discovered that the license was issued beyond authority, without following the prescribed procedures, or contains content contrary to the law, the authorized authority to impose penalties must immediately revoke the license and promptly inform the issuing agency, the competent authority for issuing and managing the license, and the authorized State Inspectorate.

Article 17. Temporary Seizure of Evidence and Means of Violation Procedures

1. The authority and procedures for applying the temporary seizure of evidence and means of administrative violation follow the provisions of Article 41 of the Administrative Violation Handling Ordinance.

2. The provisional measure of seizing evidence and means of administrative violation shall be applied in cases where it is necessary to immediately prevent the violation or ensure essential evidence for verifying circumstances serving as grounds for deciding on the handling of the violation.

3. Upon completion of the period for temporarily holding evidence and means of administrative violation as prescribed, if it is deemed necessary to apply the measure of confiscating such evidence and means, the person who issued the decision to apply the provisional measure of temporarily holding evidence and means of administrative violation may issue a decision or propose the competent authority imposing penalties to issue a decision to confiscate such evidence and means of administrative violation in accordance with Article 51 of the Ordinance on Handling Administrative Violations and Article 18 of this Decree.

Article 18. Procedure for Confiscation of Evidence and Means of Administrative Violation

1. The procedure for confiscating evidence and means of administrative violation in the field of industrial property shall comply with the provisions of Article 51 of the Ordinance on Handling Administrative Violations.

2. The form of confiscating evidence and means of administrative violation in the field of industrial property shall be applied in the following cases:

a) Seizure and sealing of goods and means are necessary to obtain evidence and ensure that such evidence is not destroyed, eliminated, or altered;

b) Goods, documents, materials, and means have the potential to lead to further violations;

c) The violator organization or individual does not have the ability or conditions to eliminate the violation factors on the goods or intentionally fails to implement the requirements of the competent authority imposing penalties regarding the elimination of violation factors, repair, or supplementing signs and indications on the goods or means of business;

d) Goods on the market or imported/exported goods contain violation factors, although the origin of the goods, the owner, producer, or person bringing them to the market cannot be determined, there are sufficient grounds to determine that such goods were not produced or brought to the market by the owner of the related industrial property object;

e) The means of violation are means primarily used for producing violating goods or providing violating services.

Article 19. Procedure for Handling Confiscated Evidence and Means of Administrative Violation

The procedure for handling confiscated evidence and means of administrative violation in the field of industrial property shall comply with the provisions of Article 52 of the Ordinance on Handling Administrative Violations and the following provisions:

1. The destruction measure shall be applied in the following cases:

a) Violating goods of poor quality that cause harm to human life, health, and living environment;

b) Violating goods or items without any value for use;

c) Violating goods or items are stickers, product labels, trademark samples, product packaging, or goods;

d) Violating goods or means that, although having value for use, cannot be handled through measures provided for in Clause 2 of this Article.

2. In cases where the evidence is goods or means of production, business, or service that have value for use, they shall be handled through the following measures:

a) Eliminate the violation factors on the goods or means of production, business, or service and auction them under the condition that the buyer has reasonable exploitation and utilization measures and ensures that no further violations will occur, and does not affect the legitimate rights and interests of the owner of the related industrial property object. For means primarily used for producing violating goods or items, providing violating services, auctioning is not allowed unless the buyer has measures to ensure their use for other functions or to utilize them as raw materials;

b) Auction the goods under the condition that the buyer obtains a valid license from the owner of the industrial property; the goods meet quality standards, and the buyer has measures to ensure the supplementation of indications as prescribed;

c) In cases where it is impossible to eliminate the violation factors or does not meet the conditions for being permitted to auction as stipulated in points a and b of this clause, they may be distributed to non-commercial users (such as humanitarian, social welfare, research, educational purposes) under the condition that the exploitation and use of the products do not affect the legitimate rights and interests of the owner of the related industrial property object.

Article 20. Enforcement of penalty decisions

1. If an organization or individual subject to penalty does not voluntarily comply with the penalty decision more than five days from the date of receiving the penalty decision, the competent authority imposing penalties shall issue a decision to enforce the penalty decision compulsorily.

2. The enforcement of the penalty decision, compulsory enforcement of the penalty decision, and the statute of limitations for enforcing the penalty decision for administrative violations shall be carried out in accordance with Articles 54, 55, and 56 of the Ordinance on Handling Administrative Violations.

Chapter 4:

SETTLEMENT OF COMPLAINTS AND REPORTS AND HANDLING OF VIOLATIONS

Article 21. Complaints and Reports on Administrative Violations in Penalty Cases

1. If the competent authority imposing administrative penalties in the field of industrial property violates the provisions on administrative penalties, harasses, tolerates, or covers up for the violator, fails to impose penalties, or imposes penalties beyond its jurisdiction, depending on the nature and severity of the violation, disciplinary action or criminal responsibility may be pursued. In case of causing material damage to the State, organizations, or citizens, compensation must be made in accordance with the law.

2. The procedures for complaints, reports, and resolution of complaints and reports by individuals and organizations subject to administrative penalties in the field of industrial property shall be implemented in accordance with Chapter VIII of the Ordinance on Handling Administrative Violations and the Ordinance on Procedures for Resolving Administrative Litigation Cases. The procedures for handling violations by the competent authority imposing administrative penalties and the individuals or organizations subject to administrative penalties in the field of industrial property shall be implemented in accordance with Chapter IX of the Ordinance on Handling Administrative Violations.

Chapter 5:

IMPLEMENTING PROVISIONS

Article 22. This Decree shall take effect fifteen days from the date of signature. The provisions at point a Clause 1 and point a Clause 3 Article 15 of Decree No. 57/CP dated May 31, 1997 on administrative penalties for violations in the field of measurement and product quality shall be replaced by the provisions on penalties for acts of producing and trading goods bearing trademarks identical or similar to those of other establishments as stipulated in this Decree.

Article 23. The Minister of Science, Technology and Environment, the Minister of Trade, the Minister of Public Security, the Minister of Finance, and the General Director of the General Department of Customs within their respective spheres of management shall be responsible for guiding and supervising the implementation of this Decree.

Article 24. Heads of Ministries, ministerial-level agencies, agencies under the Government, Chairpersons of provincial people's committees directly under the central government shall be responsible for implementing this Decree.