New Administrative Enforcement Decree Must Be Implemented in Practice: The new Administrative Violations Decree seems to be an attempt to fine-tune the administrative enforcement mechanisms, but it may send the wrong signal since it reduces the maximum administrative fine for an individual to VND250 million (US$11,800), while the maximum fine for an organization is VND500 million (US$23,600). The following fines are also set forth: 1) VND400 to 500 million against an organization that imports an unauthorized copy; 2) VND70 to 100 million against an individual that engages in unauthorized broadcasting or re-broadcasting; and 3) VND15 to 35 million against an individual that reproduces unauthorized copies of phonograms or video recordings. In addition to these fines, infringers may face remedial measures, such as confiscation of infringing goods and any (false) registration certificates, as well as the forced suspension of business, consultancy, or service activities. Since the previous maximum fines were rarely, if ever, imposed, time will tell if the administrative measures under the new Decree will be carried out in practice with greater frequency and maximum deterrence, which is needed to make an impact on piracy.
Decree No. 85 Questions Remain: IIPA previously reported on Decree No. 85 (2011), which amended certain provisions of the Civil Code.14 While Decree No. 85 contains some helpful clarifications, it also contains provisions that are problematic in terms of Vietnam’s compliance with international norms and best practices. Most notably, Decree No. 85 makes certain changes to Article 41 of Implementing Decree No. 100 governing collective management which, if applied to foreign right holders, would be onerous and would conflict with the ability for collective management organizations to operate freely and determine on what terms their rights will be administered.15 It should also be clarified that the “Principles and methods of payment of royalty, remuneration and material benefits” which the Decree adds in a new Article 45a of Implementing Decree No. 100 are not compulsory.