Scenario: company “Q.” suffers blatant trademark infringement — counterfeits everywhere, estimated VND 5 billion in damage. Counsel offers 2 routes: (A) administrative penalties — fast, cheap, but fines cap low and fine money goes to the state budget; Q. gets nothing; (B) civil suit for VND 5 billion — money comes to you, but 1–2 years of litigation, high costs, and you must prove damages. Which route? Good counsel’s answer: don’t choose — take both, in the right order.
Head-to-head: administrative vs civil
- Time: administrative — weeks to months; civil — 1–2 years (first instance + appeal);
- Cost: administrative — near-free (petitions, coordination); civil — court fees, counsel, assessments;
- Who gets paid: administrative → fines to the state, seizure/destruction of fakes (no compensation to the rights holder); civil → damages to the rights holder;
- Scale: administrative fines are capped; civil claims are uncapped — by actual damage;
- Proof: administrative — state bodies investigate and gather evidence; civil — plaintiff proves damages (the heaviest burden);
- Deterrence: administrative deters fast and broad; civil deters deep (financial blow).
The “combo” strategy: administrative first, civil after
- Step 1 — Administrative: report to Market Surveillance/inspectorates → inspection, seizure, penalties. The penalty decision is “golden” evidence: it officially records the infringement — carried into the civil case, halving your proof burden;
- Step 2 — Civil: sue for VND 5 billion — using the penalty decision + seizure records as the evidentiary base, focusing on proving damage quantum;
- Step 3 — Negotiate: after an administrative decision, many defendants voluntarily settle to avoid the civil suit — landing good money without full litigation.
When to take only one route?
- Administrative only: small damage, goal is market cleanup (removing fakes) not money; or the infringer is judgment-proof;
- Civil only: the infringer is a large asset-holding company, damage is big and evidence solid (notarized records, assessments) — strike directly for money without early administrative “tip-off”;
- Both: most serious cases — the combo is standard. When budget allows, always prefer the combo: the administrative decision both deters and “paves the road” for the civil case.
Frequently asked questions
Does the brand owner share administrative fine money?
No — fines go to the state budget. To get money yourself, sue civilly for damages.
Is a penalty decision usable in civil court?
Yes — key evidence officially recording the violation. Civil courts generally accept it, easing the proof burden.
Lose the civil suit — then?
Court fees, counsel/assessment costs lost. So sue only when: evidence is solid (notarized records, assessments, administrative decisions) and the defendant can satisfy judgment.
Can one face both administrative penalties and civil suit?
Yes — independent procedures, not mutually exclusive. Administrative punishment doesn’t extinguish civil liability, and vice versa.
This article has been quality-reviewed by the FLAW AI Legal Council