By Ngan Pham |

The Industrial Revolution 4.0, driven by advancements in Big Data, the Internet of Things (IoT), Blockchain, and Artificial Intelligence (AI), has significantly transformed the global economy. Online business methods have become a dominant trend, increasingly surpassing traditional markets, stalls, and shopping centers in market share.

E-Commerce Growth in Vietnam

In Vietnam, nearly 60 million people—approximately two-thirds of the population—shopped online in 2022. The average annual shopping value per person ranged from 260 USD (about 6.1 million VND) to 285 USD (about 6.7 million VND). Social media platforms like Facebook and TikTok have seen remarkable growth, enabling even residents in remote areas like Ha Giang and Lang Son to engage in nationwide online sales through livestream videos.

Challenges in IP Rights Enforcement on E-Commerce Platforms

Rise in Counterfeit Goods and IP Infringements

E-commerce platforms have facilitated retail growth but also brought a surge in violations. Counterfeit goods and IP infringements have become rampant. Unauthorized use of reputable brands’ images, logos, and trademarks misleads customers. Goods delivered are often counterfeits, and misleading domain names similar to well-known brands deceive buyers. Violators use sophisticated methods, such as relocating warehouses to remote areas, frequently changing storage locations, and using multiple accounts to evade detection.

Unique Challenges of Digital IP Enforcement

Enforcing IP rights in the digital sphere presents unique difficulties. The involvement of diverse parties—trademark owners, e-commerce platforms, domain registrants, and internet service providers—complicates accountability. Violations are also challenging to trace, as counterfeit goods often cross borders, with production, storage, and purchase occurring in different countries. Vietnamese legislation struggles to address these borderless infringements effectively, relying on administrative and civil measures tied to the jurisdiction where the violations occur.

Recommendations for Reducing Violations

E-Commerce Platforms

Platforms like Shopee, Lazada, and TikTok should implement robust IP protection policies. These include training seminars for sellers, technical guidance for protecting legitimate goods, policies for handling counterfeit items, and collaboration with brand owners and authorities. Using advanced management technologies and ensuring strict adherence to exchange or return policies can also help combat IP violations.

Online Buyers

Buyers play a crucial role in addressing infringements. By enhancing awareness and refusing to purchase counterfeit goods, consumers can help deter illegal activities. Reporting suspected violations and using e-commerce platforms’ complaint tools is essential. Returning or exchanging counterfeit items further discourages illicit practices, fostering a marketplace that respects IP rights.

IP Owners

For IP owners, especially those with well-known brands, proving that trademark misuse causes confusion and damages reputation is critical. International conventions provide enhanced protection for famous trademarks, which is integrated into domestic laws. Establishing a strong legal position in disputes can be an effective deterrent against IP violations.

KASS is ready to assist with IP enforcement in Vietnam. If you have any questions or need clarification, please reach out to us at kass@kass.asia.