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Decree No. 97/2010/ND-CP dated September 21, 2010 of the Government on sanctioning of administrative violations in industrial property
13/05/2011
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THE GOVERNMENT

 

Decree No. 97/2010/ND-CP of September 21, 2010, on sanctioning of administrative violations in industrial property

 

THE GOVERNMENT

 

Pursuant to the December 25, 2001 Law on Organization of the Government;

 

Pursuant to the November 29, 2005 Law on Intellectual Property; and the June 19, 2009 Law Amending and Supplementing a Number of Articles of the Law on Intellectual Property (below collectively referred to as the Law on Intellectual Property);

 

Pursuant to the December 3, 2004 Law on Competition; Pursuant to the June 29, 2006 Law on Information Technology; Pursuant to the July 2, 2002 Ordinance on Handling of Administrative Violations; and the April 2, 2008 Ordinance Amending and Supplementing a Number of Articles of the Ordinance on Handling of Administrative Violations (below collectively referred to as the Ordinance on Handling of Administrative Violations);

 

At the proposal of the Minister of Science and Technology,

 

DECREES:

 

Chapter I

 

GENERAL PROVISIONS

 

Article 1. Scope of regulation

 

This Decree specifies acts of administrative violation in industrial property, sanctioning forms and levels, remedies; procedures for filing written requests for handling of violations; competence and procedures for settling written requests for handling of violations; sanctioning competence and procedures and enforcement of decisions to sanction administrative violations in industrial property.

 

Article 2. Subjects of application

 

Vietnamese organizations and individuals; foreign organizations and individuals that commit violations of regulations on state management of industrial property and infringements of industrial property rights or acts of industrial property-related unfair competition in Vietnam; and other organizations and individuals involved in the handling of administrative violations in industrial property.

 

Article 3. Sanctions and remedies

 

1. Each act of administrative violation is subject to either of the principal sanctions: caution and fine.

 

a/ Caution shall be applied to violations in the cases specified in Article 13 of the Ordinance on Handling of Administrative Violations and relevant articles and clauses of this Decree which permit application of the sanction of caution to such violations;

 

b/ Fine shall be applied according to the fine bracket prescribed for each administrative violation specified in relevant articles and clauses of this Decree. The maximum fine level is VND 500,000,000.

 

            2. Depending on the nature and severity of violations, violators may also be subject to one or more of the following additional sanctions: a/ Confiscation of material evidence and means used in the commission of administrative violations, including goods bearing counterfeit marks or geographical indications; raw materials, materials and means used mainly for producing or trading in those goods; stamps, labels, packages and other articles bearing infringing elements; means of business, including also means for service provision and advertisement media containing infringing elements; protection titles, certificates or other documents which are modified, erased or forged;

 

b/ Deprivation for a definite or indefinite period of time of the right to use industrial property representation practice certificates; assessor cards; or certificates of eligibility for assessment practice;

 

c/ Suspension for a definite period of time of the production, trading or provision of infringing products or services.

 

            3. In addition to the principal and additional sanctions, violators may also be forced to apply one or more of the following remedies: a/ Forcible removal of infringing elements on their goods or means of business; forcible removal of information or indications on infringing goods or services on their means of business, including also advertisement

media and computer networks, or alteration or revocation of domain names or enterprise names containing infringing elements;

 

b/ Forcible distribution or use for non-commercial purposes of goods bearing counterfeit marks or geographical indications or goods infringing upon industrial property rights; raw materials, materials and means used mainly for producing or trading in these goods, provided such act does not affect the exercise of the industrial property rights by their holders; c/ Forcible bringing out of the Vietnamese territory of transit goods infringing upon industrial property rights or forcible re-export of goods bearing counterfeit marks or geographical indications, or imported means, raw materials and materials used mainly for producing or trading in these goods after infringing elements on these goods are removed; d/ Forcible destruction of infringing elements, goods, evidence and means involved in violations on which infringing elements cannot be removed or

infringing goods which may cause harms to the health of humans, domestic animals, plants and the environment; stamps, labels, packages and other articles bearing infringing elements;

 

            e/ Forcible modification or addition of indications on industrial property; f/ Forcible public correction of errors, for acts of giving wrong indications

on industrial property rights;

 

g/ Forcible confiscation of dispersed material evidence or means of violation;

 

h/ Remittance into the state budget of illicit earnings from the commission of administrative violations.

 

            4. Extenuating and aggravating circumstances are specified in Articles 8 and 9 of the Ordinance on Handling of Administrative Violations, together

with the following extenuating circumstances:

 

a/ First violations on a small scale;

 

b/ Violations committed by persons who do not know or have no condition to know about the status of protection of relevant industrial property rights.

            5. The statute of limitations for sanctioning administrative violations in industrial property complies with Article 10 of the Ordinance on Handling of Administrative Violations.

 

Article 4. Valuation of infringing goods or services

 

1. The valuation of goods being evidence or means of violation for use as a basis for determining the fine bracket and sanctioning competence shall be conducted by competent persons based on the grounds and principles

specified in Article 34 of the Government’s Decree No. 128/2008/ND-CP of December 16, 2008, detailing a number of articles of the Ordinance on Handling of Administrative Violations.

 

2. In case the grounds mentioned in Clause 1 of this Article cannot be applied for valuating infringing goods or services to serve as a basis for determining the fine bracket or illicit earnings from the commission of violations, persons with sanctioning competence shall valuate infringing goods or services based on the quantity of goods produced, sold or transported or amount of services provided which is indicated in payment invoices, contracts, orders, records of goods handover and receipt, exwarehousing bills, warehousing bills, consignment bills, delivery bills, goods import declarations, written declarations to competent agencies and prices of infringing goods or services indicated in relevant documents. If no price is indicated in relevant documents, other documents indicating the prices of these goods or services, including also price advices, documents on product introduction or advertisement of infringing goods or services, may be based on.

 

3. The value of detected infringing goods or services and documents and grounds used for determining such value shall be clearly recorded in minutes of administrative violations to be included in case files. 4. When impossible to valuate infringing goods or services under Clauses 1 and 2 of this Article, fines shall be imposed under Clause 13, Article 10; Clause 12, Article 11; Clause 11, Article 12; and Clause 8, Article 14 of this Decree.

 

Chapter II

 

VIOLATIONS TO BE ADMINISTRATIVELY SANCTIONED

 

 Section 1. Violations of regulations on management of industrial property activities

 

Article 5. Violations of regulations on procedures for establishment, exercise and protection of industrial property rights

 

1. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed on individuals or organizations that commit either of the following violations:

 

a/ Modifying or erasing protection titles or documents proving industrial property rights;

 

b/ Taking advantage of procedures for establishment, exercise and protection of industrial property rights to commit acts infringing upon the interests of the State, public interests or lawful rights and interests of other organizations or individuals.

 

2. A fine of between VND 10,000,000 and VND 15,000,000 shall be imposed on individuals or organizations that commit acts of providing false information and evidence in the process of carrying out any of the following procedures:

 

a/ Carrying out procedures for establishment, recognition, certification, amendment, maintenance, extension, request for termination or cancellation of the validity of industrial property rights protection titles; b/ Requesting competent state agencies to issue decisions on compulsory licensing of inventions;

 

c/ Lodging complaints or denunciations about the establishment, exercise and protection of industrial property rights;

 

d/ Requesting termination of violations, handling of violations, industrial property assessment; or responding to requests of competent agencies in the settlement of disputes or handling of industrial property infringements. 3. A fine of between VND 15,000,000 and VND 20,000,000 shall be imposed on individuals or organizations that commit acts of forging papers in the cases specified in Clause 2 of this Article.

 

4. Additional sanction: Confiscation of modified, erased or forged papers, documents, protection titles or documents proving industrial property rights, for violations specified at Point a, Clause 1, and Clauses 2 and 3 of this Article.

 

Article 6. Violations of regulations on indications on protection of industrial property rights

 

1. A caution or a fine of between VND 3,000,000 and 5,000,000 shall be

            imposed on organizations or individuals that commit any of the following violations:

 

a/ Providing wrongful indications on objects or elements subject to industrial property rights protection, industrial property rights holders, authors of inventions, industrial designs or layout designs; b/ Providing wrongful indications on the legal status and scope of protection of industrial property rights;

 

c/ Providing wrongful indications or no indication on goods produced under licensing contracts (licensing indications).

 

2. Remedies:

 

a/ Forcible removal of infringing elements on goods or means of business, for violations specified in Clause 1 of this Article;

 

b/ Forcible public correction of errors, for violations specified at Points a and b, Clause 1 of this Article;

 

c/ Forcible modification or addition of indications, for violations specified at Point c, Clause 1 of this Article.

 

Article 7. Violations of regulations on industrial property representation

 

1. A caution or a fine of between VND 2,000,000 and 5,000,000 shall be imposed on industrial property representatives that commit either of the following violations:

 

a/ Failing to notify in writing a state agency competent to establish and protect industrial property rights of a change in their names, addresses or legal status or a change related to the parties authorizing and authorized to conduct industrial property representation;

 

b/ Failing to notify or truthfully notify industrial property representation charges and fees and their rates at the request of a competent agency. 2. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed on industrial property representatives that commit any of the following violations:

 

a/ Concurrently representing parties to a dispute over industrial property rights;

 

b/ Arbitrarily withdrawing applications for protection titles, disclaiming the protection, withdrawing complaints or taking other acts in the establishment of industrial property rights without permission of the representation authorizer;

 

c/ Failing to notify contents of requests of a competent state agency competent to establish industrial property rights, settle industrial property

disputes or handle industrial property violations to the representation authorizer;

 

d/ Failing to promptly deliver protection titles, documents evidencing industrial property rights, certificates and other decisions to the representation authorizer without any plausible reason; e/ Failing to notify concerned organizations or individuals of contents of requests of competent state agencies;

 

f/ Failing to implement or respond to requests of competent state agencies for establishment of industrial property rights or settlement of industrial property disputes or handling of industrial property violations without any plausible reason;

 

g/ Modifying or falsifying contents of industrial property representation practice certificates;

 

h/ Deliberately advising or notifying wrongful information on provisions of the industrial property law or information on industrial property activities; i/ Deliberately obstructing the normal progress of the establishment, exercise and protection of industrial property rights, causing damage to parties with related rights and interests.

 

3. A fine of between VND 10,000,000 and 15,000,000 shall be imposed on organizations or individuals that commit either of the following violations: a/ Providing industrial property representation services without satisfying the practice conditions specified by law;

 

b/ Forging papers and documents or providing untruthful information to competent state agencies in the process of registration and inspection of industrial property representation operations, application for industrial property representation practice certificates or request for recognition of industrial property representation service providers.

 

4. A fine of VND 15,000,000 and 20,000,000 shall be imposed on industrial property representatives that commit either of the following violations:

 

a/ Disclosing information not yet permitted for disclosure of competent state management agencies relating to the process of receipt, examination and processing of various registration applications, complaints and requests for handling of industrial property violations;

 

b/ Committing serious errors or violations in the course of practicing representation, causing damage to the interests of the State or the society. 5. Additional sanctions:

 

a/ Termination of the provision of infringing services, for violations specified at Point a, Clause 3 of this Article;

 

b/ Deprivation of the right to use industrial property representation practice certificates for between 3 and 6 months, for violations specified in Clause 2 of this Article;

 

c/ Deprivation for an indefinite period of time of the right to use industrial property representation practice certificates, for violations specified in Clause 4 of this Article.

 

Article 8. Violations of regulations on industrial property assessment

1. A caution or a fine of between VND 2,000,000 and VND 5,000,000 shall be imposed on individuals or organizations functioning to conduct industrial property assessment that commit any of the following violations: a/ Violating regulations on assessment order, procedures and time limit; b/ Failing to be present when summoned by assessment-requesting agencies without any plausible reason, or failing to explain assessment conclusions when requested by assessment-requesting agencies; c/ Modifying or falsifying contents of assessor cards or certificates of eligibility for industrial property assessment.

 

2. A fine of between VND 5,000,000 and 10,000,000 shall be imposed on organizations or individuals that commit any of the following violations: a/ Conducting industrial property assessment without satisfying the practice conditions specified by law;

 

b/ Disclosing secret information acquired while conducting assessment without permission of concerned parties;

 

c/ Failing to compile assessment dossiers or failing to preserve exhibits and documents related to cases subject to assessment;

 

d/ Using industrial property assessor cards of other persons or letting other persons use their own industrial property assessor cards to practice assessment.

 

3. A fine of between VND 10,000,000 and 20,000,000 shall be imposed on organizations or individuals that commit any of the following violations: a/ Taking advantage of the assessor status and assessment activities for self-seeking purposes;

 

b/ Deliberately making untruthful assessment conclusions; c/ Modifying, erasing or otherwise falsifying assessment documents without permission;

 

d/ Forging or using forged papers or supplying untruthful information to competent state agencies in the process of registration and inspection of industrial property assessment operations, application for industrial property assessor cards or request for recognition of industrial property assessment organizations;

 

e/ Deliberately conducting assessment in cases in which assessment must be refused as prescribed by law.

 

4. Additional sanctions and remedies:

 

a/ Termination of the provision of infringing services, for violations

specified at Point a, Clause 2 of this Article;

 

b/ Deprivation of the right to use assessor cards or certificates of eligibility for industrial property assessment for between 3 and 6 months, for violations specified at Points a and c, Clause 1 of this Article; c/ Confiscation of modified, falsified or forged documents, for violations specified at Point c, Clause 1 and Point d, Clause 3 of this Article; d/ Remittance into the state budget of illicit earnings, for violations specified at Point a, Clause 3 of this Article.

 

Article 9. Violations of regulations on industrial property inspection and examination

 

1. A caution or a fine of between VND 1,000,000 and VND 3,000,000 shall be imposed on organizations or individuals that commit either of the

            following violations:

 

a/ Refusing to receive inspection or examination decisions or administrative sanctioning decisions without any plausible reason; b/ Failing to supply or providing insufficient or untruthful documents and data necessary for conducting inspection and examination or handling violations at the request of competent persons.

 

2. A fine of between VND 5,000,000 and 10,000,000 shall be imposed on organizations or individuals that commit either of the following violations: a/ Failing to abide by requests, conclusions or decisions of industrial property inspection or examination teams without any plausible reason; b/ Obstructing, causing difficulties to or shirking industrial property inspection or examination conducted by competent persons. 3. A fine of between VND 10,000,000 and VND 15,000,000 shall be imposed on organizations or individuals that commit either of the following violations:

 

a/ Reviling, offending or humiliating persons competent to conduct industrial property inspection or examination;

 

b/ Deliberately delaying, shirking or refusing the execution of administrative decisions of persons competent to inspect, examine and handle administrative violations in industrial property. 4. A fine of between VND 15,000,000 and VND 20,000,000 shall be imposed on organizations or individuals that commit either of the following violations:

 

            a/ Arbitrarily removing or breaking seals or altering scenes of incidents, quantity or category of goods which are material evidence of industrial property violations subject to inspection, examination, sealing or seizure;

b/ Dispersing or destroying material evidence or means subject to inspection or examination.

 

5. Remedy: Forcible recovery of dispersed material evidence and means, for violations specified at Point b, Clause 4 of this Article.

 

Section 2. INFRINGEMENT OF RIGHTS AND UNFAIR COMPETITION IN INDUSTRIAL PROPERTY

 

Article 10. Infringement of rights to inventions, utility solutions and layout designs

 

1. A caution or a fine of between VND 2,000,000 and 4,000,000 shall be

            imposed on organizations or individuals that commit any of the following violations for business purposes in case infringing goods are valued at up to VND 5,000,000:

 

a/ Selling, offering for sale; transporting, transiting; storing; displaying for sale products infringing upon rights to inventions, utility solutions or layout designs, or products produced from a process infringing upon rights to inventions or utility solutions;

 

b/ Utilizing products infringing upon rights to inventions or utility solutions or products produced from a process infringing upon rights to inventions or utility solutions;

 

c/ Placing orders to, assigning or hiring other parties to commit violations specified at Points a and b of this Clause.

 

2. A fine of between VND 4,000,000 and 8,000,000 shall be imposed on organizations or individuals that commit any violation specified in Clause 1 of this Article in case infringing goods are valued at between over VND 5,000,000 and 10,000,000.

 

3. A fine of between VND 8,000,000 and 15,000,000 shall be imposed on organizations or individuals that commit any violation specified in Clause 1 of this Article in case infringing goods are valued at between over VND 10,000,000 and 20,000,000.

 

4. A fine of between VND 15,000,000 and 30,000,000 shall be imposed on organizations or individuals that commit any violation specified in Clause 1 of this Article in case infringing goods are valued at between over VND 20,000,000 and 40,000,000.

 

5. A fine of between VND 30,000,000 and 50,000,000 shall be imposed on organizations or individuals that commit any violation specified in Clause 1 of this Article in case infringing goods are valued at between over VND 40,000,000 and 70,000,000.

 

6. A fine of between VND 50,000,000 and 80,000,000 shall be imposed on organizations or individuals that commit any violation specified in Clause 1 of this Article in case infringing goods are valued at between over VND 70,000,000 and 100,000,000.

 

7. A fine of between VND 80,000,000 and 160,000,000 shall be imposed on organizations or individuals that commit any violation specified in Clause 1 of this Article in case infringing goods are valued at between over VND 100,000,000 and 200,000,000.

 

8. A fine of between VND 160,000,000 and 240,000,000 shall be imposed on organizations or individuals that commit any violation specified in

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