When it comes to patent litigation in Vietnam, calculating and awarding damages is a critical process. This article provides an overview of how damages are determined, the statute of limitations, the absence of punitive damages, and the typical legal fees associated with such litigation in Vietnam.
Calculating Damages
Damages in Vietnam are calculated based on the actual loss suffered by the intellectual property rights (IPR) holders due to infringement acts. The damages are categorized into two types: material damages and spiritual damages.
Material Damages
Material damages require the plaintiff to present proof of the damages and a calculation method. The court then decides whether to approve these claimed damages. The material damages can be quantified in two ways:
- Total Material Damage: This includes the monetary loss plus any profit made by the defendant from the IP infringement.
- Licensing Fees: This considers the hypothetical scenario where the defendant was licensed by the plaintiff to use the IP under a contract corresponding to the infringement scope.
If it is impossible to determine the damages using the above methods, the court may set the damages based on the extent of the loss, with a maximum cap of VND500,000,000 (approximately US$20,000).
Spiritual Damages
Spiritual damages can be claimed if the plaintiff proves that the infringement caused non-material harm. The compensation for spiritual damages ranges from VND5,000,000 (approximately US$200) to VND50,000,000 (approximately US$2000), depending on the extent of the loss as determined by the court.
It is important to note that compensation for damages is only obtainable through civil litigation, and the infringer is responsible for paying both the damages and the plaintiff’s legal fees.
Statute of Limitations
The statute of limitations for claiming damages or lost profits in patent infringement cases in Vietnam is three years from the end date the person with the right to claim knows or should know that his or her legitimate rights and interests have been violated. Patent owners must initiate a civil lawsuit within this period to seek compensation.
No Punitive Damages
Vietnam’s patent law does not include provisions for punitive damages. The infringer is required to pay for the total damages and the plaintiff’s attorney fees, but no additional punitive damages are awarded.
Legal Fees for Patent Litigation
The costs associated with patent litigation in Vietnam can vary significantly based on the specific case. Typical costs include:
- Attorney Fees
- Government Fees: These depend on the compensation requested, as outlined in the below table:
|
Compensation Amount |
Government Fee |
|
< US$3,000 |
US$150 |
|
US$3,000 – US$20,000 |
5% of the compensation amount |
|
US$20,000 – US$40,000 |
US$1,000 + 4% of the amount above US$20,000 |
|
US$40,000 – US$100,000 |
US$1,800 + 3% of the amount above US$40,000 |
|
US$100,000 – US$200,000 |
US$3,600 + 2% of the amount above US$100,000 |
|
> US$200,000 |
US$6,000 + 0.1% of the amount above US$200,000 |
Understanding these factors is crucial for patent owners seeking to enforce their rights in Vietnam. Although the compensation for damages can be significant, the litigation costs and the statute of limitations are essential considerations for pursuing legal action in patent infringement cases.
