Scenario: “An Phat” furniture company, 10 years in business, customers know it as “An Phat.” Suddenly a newly established “An Phat Home” also sells furniture, same city — customers order wrongly, neighbors assume it’s “An Phat’s” new branch. “An Phat” never trademarked its company name. Actionable? Yes — via trade name, an IP subject many Vietnamese businesses don’t know they own, protected without registration.
What is a trade name? Protectability conditions
Under the Intellectual Property Law, a trade name is the name of an organization/individual used in business to distinguish itself from other businesses. Protected when:
- Lawfully used: business-registered name, genuine operation;
- Distinctive: not identical/confusing with another’s earlier-used trade name;
- No IP registration needed: rights arise from use — first user with reputation wins.
Unlike trademarks: trade names attach to the business entity (the company), not specific products — and can’t be assigned independently (only with the whole enterprise).
That non-assignability cuts both ways in disputes: you cannot sell the trade name alone to a white knight, but neither can the infringer acquire it to legitimize their use. In settlement talks, this often pushes both sides toward the infringer rebranding — the only clean exit.
Infringement: confusingly identical naming
“An Phat Home” infringes “An Phat’s” trade name when:
- Using an identical/similar name (“An Phat” is the dominant element; adding “Home” doesn’t distinguish enough);
- Same sector (furniture) and same locality — high confusion likelihood;
- Actual confusion: misdirected orders, assumed branch relationship — “golden” evidence.
Handling: 4 steps
- Step 1 — “First use, reputation” evidence: business registration certificate (established 10 years earlier), contracts, invoices, advertising under “An Phat,” confused-customer surveys;
- Step 2 — Warning letter: demand renaming by deadline — many new companies “didn’t know” and rename upon receiving counsel’s letter;
- Step 3 — Administrative complaint: petition the business registration authority — confusingly identical enterprise names can be ordered renamed;
- Step 4 — Sue: ask the court for cessation + damages (lost customers, reputation harm).
Prevention: don’t rely on trade names alone
- Trademark your company/brand name — trade-name protection is “free” but proving “first use and reputation” takes work; a titled trademark sues faster;
- When naming new companies: search first (business-registration portal + trademarks) — avoid accidentally colliding with reputable names;
- Archive name-use evidence from day one (dated website, signage, contracts).
Frequently asked questions
Is an unregistered trade name protected?
Yes — rights arise from lawful use, no registration needed. But you must prove earlier use and distinctiveness.
How does it differ from a trademark?
Trade names attach to the business entity, protected from use; trademarks attach to products/services, protected from registration. A name that’s both gets two-layer protection.
New company says “my name registration is lawful”?
Enterprise-name registration doesn’t license infringing another’s trade name — if confusing, renaming can still be ordered plus damages.
Can trade names be sold?
Not independently assignable — only with the entire enterprise. Quite unlike trademarks (independently assignable).
This article has been quality-reviewed by the FLAW AI Legal Council