Penalties for using pirated software are an issue of concern for many individuals and businesses, especially as competent authorities strengthen the enforcement of intellectual property infringement. Computer software, as a computer program, may be protected by copyright. Therefore, unauthorized copying, installation, exploitation, or use of unlicensed software may result in administrative penalties, removal of infringing copies, compensation for damages, or criminal liability in serious cases. This article, prepared by Tran & Tran, helps individuals and businesses understand the possible penalties and how to reduce legal risks when using software in business operations.
What is pirated software?
Pirated software refers to software that is copied, cracked, installed, distributed, or used without the copyright owner’s consent or outside the permitted license scope. In practice, pirated software is also commonly known as cracked software, unlocked software, unlicensed software, or software using unauthorized activation keys.
Under intellectual property law, a computer program may be protected as a literary work, whether expressed in source code or machine code. This is an important legal basis for determining whether unauthorized copying, distribution, or use of software may constitute copyright infringement.
The risk does not apply only to people who distribute cracked software. A business that installs unlicensed software on internal computers, uses one license on more devices than permitted, or uses software of unclear origin in commercial operations may also be reviewed and handled depending on the specific case.
The Copyright Office of Vietnam requires that unlicensed software not be used
On May 6, 2026, the Copyright Office of Vietnam issued Official Letter No. 314/BQTG-QL&HTQT implementing Official Telegram No. 38/CĐ-TTg dated May 5, 2026 of the Prime Minister, requesting organizations, businesses, and individuals to review compliance with copyright and related rights and not to use unlicensed computer programs.
The content emphasizes that organizations, businesses, and individuals must strictly comply with copyright and related rights regulations in professional and business activities, must not use unlicensed computer programs, and must not unlawfully exploit works, performances, phonograms, video recordings, broadcasts, or other copyright and related rights objects.
This shows that using pirated software is not merely an internal business management issue, but also an intellectual property compliance risk. The more software a business uses in operations, design, accounting, data management, or service delivery, the more regularly it should review its license status.
Administrative penalties for using pirated software
Using pirated software may be handled as a copyright infringement, especially as an act of copying a work without the copyright owner’s permission. Decree No. 341/2025/NĐ-CP provides administrative penalties in the field of copyright and related rights, including fines and remedial measures for relevant violations.
The penalty amount is not fixed for every case. Competent authorities usually consider whether the infringer is an individual or an organization, the illegal profit obtained, the damage caused to the copyright owner, the value of infringing goods, and the specific circumstances of the case.
| Infringing subject | Reference fine amount | Common basis for application |
|---|---|---|
| Individual | VND 5 – 10 million | Illegal profit below VND 10 million, damage to the copyright owner below VND 20 million, or infringing goods valued below VND 20 million |
| Individual | VND 10 – 20 million | Illegal profit from VND 10 million to below VND 20 million, or damage from VND 20 million to below VND 40 million |
| Individual | VND 20 – 30 million | Illegal profit from VND 20 million to below VND 30 million, or damage from VND 40 million to below VND 60 million |
| Individual | VND 30 – 50 million | Illegal profit from VND 30 million to below VND 50 million, or damage from VND 60 million to below VND 100 million |
| Organization | VND 10 – 20 million | Illegal profit below VND 20 million, or damage to the copyright owner below VND 40 million |
| Organization | VND 20 – 40 million | Illegal profit from VND 20 million to below VND 40 million, or damage from VND 40 million to below VND 80 million |
| Organization | VND 40 – 60 million | Illegal profit from VND 40 million to below VND 60 million, or damage from VND 80 million to below VND 120 million |
| Organization | VND 60 – 100 million | Illegal profit from VND 60 million to below VND 100 million, or damage from VND 120 million to below VND 200 million |
The table above is summarized based on penalty information for copying works without the copyright owner’s permission. When applied to pirated software cases, businesses should consider the actual conduct: whether the software is only installed internally, copied in multiple versions, distributed to others, commercially exploited, or generates illegal profits.
Possible remedial measures
In addition to fines, the infringer may also be required to take remedial measures. In pirated software cases, common remedial measures include mandatory destruction, removal, or deletion of infringing originals and copies on telecommunications networks and the internet. If illegal profits are generated, the infringer may also be required to return such profits to the copyright owner.
For businesses, remedial measures may directly affect operations. For example, if design software, accounting software, data management software, or production management software must be removed without a lawful replacement solution, business activities may be disrupted.
Therefore, software compliance reviews should not be delayed until an inspection or complaint occurs. Businesses should proactively inventory their software, standardize licenses, and fully retain records of software purchase, rental, or authorization.
When can using pirated software lead to criminal liability?
In serious cases, acts related to pirated software may be reviewed under Article 225 of the 2015 Criminal Code, as amended in 2017, on the crime of infringing copyright and related rights. According to published legal information, unauthorized copying of works or distribution of copies of works on a commercial scale may lead to criminal liability if statutory thresholds on illegal profit, damage, or value of infringing goods are met.
Not every case of using pirated software results in criminal liability. Criminal liability depends on the specific conduct, fault, scale of infringement, illegal profits, damage caused to the rights holder, and the circumstances of the case.
| Subject | Circumstances that may be reviewed | Handling direction mentioned |
|---|---|---|
| Individual | Illegal profit or damage reaches statutory thresholds | May be subject to fines, non-custodial reform, or imprisonment depending on severity |
| Individual committing the offense in an organized or repeated manner | Organized conduct, repeated offenses, or higher levels of illegal profit or damage | May be subject to heavier penalties |
| Commercial legal entity | Infringement on a commercial scale, with illegal profit or damage reaching statutory thresholds | May face large fines, and in serious cases, temporary suspension of operations |
| Additional cases | Depending on the facts and decision of the competent authority | May include additional penalties such as prohibition from business, prohibition from operating in certain fields, or prohibition from raising capital |
Therefore, businesses using unlicensed software on a large scale, systematically, or for commercial purposes should take this risk seriously.
In what situations may a business be penalized for using pirated software?
A business may face enforcement risks not only when distributing pirated software externally, but also when using unlicensed software internally. Common situations include:
- Installing cracked software on company computers
This often occurs in design, technical, marketing, accounting, or operations departments. Even if the software is used only internally, the business may still face risk if it does not have lawful usage rights. - Using one license on multiple devices beyond the permitted scope
Many software licenses allow installation only on a specific number of devices or accounts. Using software beyond the license scope may constitute a breach of license terms. - Using a personal license for commercial business operations
Some licenses are intended only for personal, educational, or non-commercial use. If a business uses such licenses for business purposes, this may exceed the permitted scope. - Failing to prove lawful usage rights
A business may have purchased software but failed to retain invoices, contracts, activation emails, administrator accounts, or license documents. When proof is required, missing records may create disadvantages. - Sharing installation files or activation keys with others
Sharing software or activation keys creates higher risk because it goes beyond internal use and may involve distribution or assistance in unlawful use.
Can individuals be penalized for using pirated software?
Individuals using pirated software may still be handled if there is sufficient basis to determine copyright infringement. However, the level of handling depends on the nature of the conduct and actual consequences.
If an individual only downloads software for personal use, the risk is usually assessed differently from cases involving copying, distribution, sale of unauthorized keys, sharing cracked software download links, or using pirated software to provide commercial services. Conduct involving commercial elements, benefits, or damage to the rights holder usually carries higher risk.
Even so, from both legal safety and information security perspectives, individuals should not use pirated software. Cracked software may contain malicious code, leading to account theft, data loss, or device damage.
How can businesses avoid penalties for using pirated software?
To reduce the risk of penalties, businesses should include software management in their internal compliance system. Key measures include:
- Inventory all software currently in use
Businesses should review computers, servers, internal devices, employee accounts, and professional software used in business operations. - Compare licenses with actual usage scope
Businesses should check the number of users, number of devices, license duration, upgrade rights, commercial use rights, and transfer conditions. - Remove cracked software or software of unclear origin
Installation files without a lawful source should be handled early to reduce legal and security risks. - Store evidence of lawful use
Businesses should retain contracts, invoices, activation emails, license accounts, terms of use, and relevant handover records. - Establish internal software installation policies
Businesses should clearly define which department may install software, the approval process for purchasing licenses, and employee responsibilities when using company devices. - Provide software copyright compliance training
Employees should understand that downloading and installing cracked software on company devices without approval may create risks for the entire business.
What should software owners do when their software is used illegally?
For authors, software development companies, or computer program owners, software cracking, copying, or illegal distribution may cause substantial damage. When infringement is detected, the rights holder should proceed with evidence and a clear strategy.
First, evidence should be collected, such as download links, screenshots, infringing installation files, distributor account information, advertising posts, or evidence of use within a business. The rights holder should then review ownership documents, including source code, development documents, employment contracts, outsourced development contracts, assignment agreements, and the Copyright Registration Certificate, if any.
Once preliminary grounds are available, the rights holder may send a cease-and-desist request, request removal of pirated software copies, claim compensation, or request competent authorities, platforms, hosting providers, or e-commerce platforms to handle the matter depending on the case.
Should software copyright be registered to reduce dispute risks?
Yes. Software development companies should consider registering copyright in computer programs, especially when the software has commercial value, is used for licensing, transfer, fundraising, or is at risk of being copied.
Registration is not always a condition for rights to arise, but a Copyright Registration Certificate is important evidence when a dispute occurs or when handling the use of pirated software. For software developed through outsourcing, cooperation, or multiple contributors, businesses should carefully review source code ownership before registration.
Pirated software handling consulting services at Tran & Tran
Tran & Tran assists businesses, authors, and software owners with issues related to software copyright, copyright registration for computer programs, and the handling of pirated software use.
Tran & Tran’s services may include reviewing source code ownership, advising on software copyright registration documents, representing clients in copyright registration filing, advising on programming outsourcing contracts, assignment agreements, software licensing agreements, and handling plans for copying, cracking, distribution, or illegal use of software.
Businesses may provide Tran & Tran with software information, description documents, source code, development contracts, software licenses, or infringement evidence for ownership assessment, risk evaluation, and a suitable handling plan based on the actual situation.
Conclusion
Penalties for using pirated software depend on the specific conduct, infringing subject, illegal profit, damage caused, value of infringing copies, and circumstances of the case. Individuals and businesses may face administrative penalties and remedial measures; in serious cases, criminal liability may also be considered.
To reduce risks, businesses should inventory software currently in use, standardize licenses, remove software of unclear origin, and establish internal software management procedures. For software owners, copyright registration, preservation of development evidence, and proactive handling of infringement are important steps in protecting intellectual property assets.
Contact Tran & Tran for professional advice on penalties for using pirated software, software copyright risk review, and case-specific handling solutions.
FAQ about penalties for using pirated software
How much is the penalty for using pirated software?
The penalty depends on whether the infringer is an individual or organization, the specific conduct, illegal profit, damage caused, and value of infringing copies. For the same type of conduct, organizations usually face higher fines than individuals.
Can a business be penalized for using pirated software?
Yes. If a business uses, copies, or exploits unlicensed software in a way that infringes copyright, it may be handled under applicable regulations.
Can an individual be penalized for using cracked software?
Yes, if there is sufficient basis to determine that the use of cracked software constitutes copyright infringement. The risk is higher if the individual distributes software, sells keys, shares download links, or uses pirated software to provide commercial services.
Can using pirated software lead to criminal liability?
In serious cases, copyright and related rights infringement may lead to criminal liability if the conditions under Article 225 of the Criminal Code are met. Not every case of using pirated software constitutes criminal liability.
What documents should a business keep to prove lawful software use?
A business should keep software purchase contracts, invoices, activation emails, license accounts, terms of use, handover records, and other documents related to the permitted scope of use.
What should a business do if it is found using pirated software?
The business should stop using unlawful software, remove infringing installations, review its entire software system, standardize licenses, and consult legal professionals to assess specific risks.
