In the context of the rapidly evolving digital economy during the 2025–2026 period, the issue of counterfeit and pirated goods remains persistent but has transformed with more sophisticated tactics than ever before. For enterprises, counterfeit goods do not only lead to revenue loss but also act as a direct “blade” severing customer trust and destroying reputations built over decades.
This article, prepared by experts at Tran & Tran International Intellectual Property Law Firm, deconstructs complex legal regulations to help your enterprise clearly distinguish the nature of counterfeit goods and establish an optimal intellectual property (IP) enforcement process.
1. The Reality of Counterfeit Goods in the E-commerce Era 2026
Entering 2026, the boundary between genuine and counterfeit goods on e-commerce platforms and social media has become increasingly blurred. Violators no longer stop at faking low-value consumer goods but have aggressively attacked segments such as high-tech products, pharmaceuticals, cosmetics, and complex industrial equipment.
Sophistication is demonstrated through the use of 3D printing technology, copying packaging with 99% accuracy, and utilizing cross-border warehouses to evade authorities. For trademark owners, detecting and handling counterfeit goods is no longer a solitary activity but requires a systematic IP risk management strategy.
2. Legal Definitions of Counterfeit Goods Under Current Regulations
To take appropriate action, enterprises first need to understand the legal concept of counterfeit goods. Based on Decree 98/2020/ND-CP and related documents, counterfeit goods are divided into three main groups:
2.1. Counterfeit Quality and Utility
These are goods with no utility value or utility value that does not match their nature, name, or declared utility. Examples include therapeutic drugs without active ingredients or functional foods with components entirely different from the label.
2.2. Counterfeit Trademarks and Geographical Indications
This is the core focus of the IP field. According to Article 213 of the Law on Intellectual Property, counterfeit trademark goods are goods or their packaging bearing marks or signs that are identical or confusingly similar to a protected trademark for the same type of goods without the owner’s permission.
2.3. Counterfeit Origin and Source of Goods
These goods feature fake labels or packaging indicating a fraudulent manufacturing organization or individual, a fake place of manufacture, or a fake geographical indication to deceive consumers about the reputation of the production area.
3. In-depth Distinction: Counterfeit Trademark Goods vs. IP Infringing Goods
At Tran & Tran, we often receive inquiries from clients regarding the distinction between “Counterfeit Goods” and “Infringing Goods”. Confusing these two concepts can lead to the application of incorrect sanctions and reduce the effectiveness of the enforcement process.
3.1. Counterfeit Trademark Goods
The nature of counterfeit goods is “total fabrication”. Violators intentionally make the product look identical to the genuine product to deceive consumers about its origin. This is the most serious violation, often handled with strong administrative measures or criminal prosecution.
3.2. IP Infringing Goods
This is a broader concept than counterfeit goods. A product may not be counterfeit (not intentionally pretending to be another product) but still infringes upon IP rights.
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Example: A company produces a water purifier with an industrial design that another party has registered for exclusive protection. Even if they clearly state their own company name on the product, they are still infringing on Industrial Design rights.
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Patent Infringement: A product uses a protected technical solution without purchasing a license.
Conclusion: Counterfeit trademark goods are always IP infringing goods, but IP infringing goods are not necessarily counterfeit. Identifying the correct nature will help your attorneys make the appropriate enforcement requests to the authorities.
4. Sanctioning System for Manufacturing and Trading Counterfeit Goods
Vietnamese law has built a strict barrier of sanctions to protect enterprises and consumers.
4.1. Administrative Sanctions
Based on Decree 98/2020/ND-CP and Decree 17/2023/ND-CP, the act of trading or manufacturing counterfeit goods can result in fines of up to 200 million VND for individuals and 400 million VND for organizations. Additionally, supplementary penalties include:
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Confiscation of exhibits and means of violation.
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Suspension of business operations for 1 to 24 months.
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Mandatory destruction of exhibits or removal of infringing elements from the goods.
4.2. Criminal Liability
This is the strongest deterrent. The Penal Code (amended in 2017) stipulates in Articles 192 (Crime of manufacturing and trading counterfeit goods) and Articles 193, 194, 195:
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The highest penalty can be up to 15 years in prison or life imprisonment (for counterfeit medicines).
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Legal entities found guilty can be fined billions of VND, permanently suspended from operation, and banned from doing business in certain fields.
4.3. Civil Compensation
Trademark owners have the right to file a lawsuit in Court to request the infringing party to:
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Terminate the infringing act.
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Publicly apologize and issue corrections.
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Compensate for material damages (loss of revenue) and spiritual damages (harm to brand reputation).
5. IP Enforcement and Counterfeit Handling Process for Enterprises
When detecting counterfeit or pirated goods on the market, enterprises should remain calm and follow this legal roadmap for maximum effectiveness:
Step 1: Collect and Consolidate Evidence
Enterprises should purchase samples of suspected counterfeit goods and request a Bailiff’s Deed (Vi bằng) to record the sale, storefront images, or infringing e-commerce pages. This ensures evidence is not deleted when the subject discovers they are under investigation.
Step 2: Intellectual Property Appraisal
Enterprises should send counterfeit samples along with the trademark protection dossier to the Vietnam Intellectual Property Research Institute (VIPRI) for an expert opinion. VIPRI’s appraisal conclusion is a highly valuable legal document that supports authorities in making sanctioning decisions.
Step 3: File a Request for Handling Violations
Enterprises can send intervention requests to:
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Market Management Authority: Most effective for counterfeit goods circulating in the domestic market.
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Economic Police: For large-scale manufacturing rings with signs of criminal activity.
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Customs Authority: Implementing border control measures to block counterfeit goods from entering or leaving Vietnam.
6. Prevention Strategies Against Counterfeit Goods via IP
Instead of just reacting to consequences, Tran & Tran recommends building a strong “immune system” for your brand through preventive solutions:
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Early Rights Establishment: Register trademarks, industrial designs, and copyrights as soon as a product is conceived. An unregistered IP right is very difficult for authorities to protect against counterfeiting.
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Periodic Market Monitoring: Establish a network to track trademark keywords on the internet and e-commerce platforms (Shopee, Lazada, TikTok Shop).
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High-Tech Anti-Counterfeit Systems: Use high-tech anti-counterfeit labels (dynamic QR codes, hologram labels) integrated with traceability applications.
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Cooperation with Customs: Perform Trademark Registration with Customs. Once recorded, the customs force will have the basis to suspend the clearance of shipments suspected of counterfeiting the enterprise’s trademark.
7. The Role of Tran & Tran International Intellectual Property Law Firm
Please note that Tran & Tran is an in-depth consulting unit in the field of Intellectual Property; we do not provide general administrative services such as business license applications. Our mission is to be a legal shield, protecting the “brainpower assets” and reputation of enterprises in the marketplace.
We support enterprises in core activities:
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Searching and Assessing Infringement Risks: Helping enterprises identify early risks of trademark imitation from competitors.
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Representing Rights Enforcement: Drafting dossiers and working with appraisal institutes, Police, and Market Management to thoroughly handle counterfeit goods.
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Establishing IP Management Regulations: Helping enterprises optimize brand value and manage franchise or licensing contracts to avoid brand exploitation.
8. Conclusion
The fight against counterfeit goods is persistent and requires a deep understanding of the law. A wise enterprise protects its assets from the drafting stage. Do not wait until counterfeit goods are rampant to find a solution.
Focus on the core value of your products and let Tran & Tran establish the legal barriers to protect your brand.
Contact Information: Tran & Tran
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Address: Room 802, Talico Building, 22 Ho Giam Street, Dong Da District, Hanoi.
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Consulting Hotline: 024 3732 7466.
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Email: ip@trantran.vn.
