Intellectual Property

VND 50M Administrative Fine vs VND 5B Civil Suit: Which Route?

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