Recently, counterfeit products bearing the BIA SAIGON brand have shown signs of renewed infringement in the markets of Binh Duong and Binh Dinh provinces.
On March 16, 2023, the People's Court of Ba Ria - Vung Tau province sentenced Saigon Beer Group Joint Stock Company and its representative to a fine of 3.7 billion VND for infringing on the industrial property rights of the protected BIA SAIGON trademark of SABECO.
Although the judgment has taken effect, recently there have been signs of re-infringement of the BIA SAIGON brand by counterfeit products, as SABECO has discovered these products appearing in the markets of Binh Duong and Binh Dinh provinces.
Counterfeiting the BIA SAIGON brand can easily lead to customer confusion or inability to distinguish genuine products from counterfeit ones, causing anxiety and eroding customer trust in the product.
Deliberately producing counterfeit goods bearing the BIA SAIGON brand.
Returning to the criminal case of "Infringement of Industrial Property Rights" concerning the protected trademark "BIA SAIGON" of Saigon Beer, Alcohol and Beverage Corporation (SABECO), which occurred in September 2020. The defendant, Le Dinh Trung (56 years old, director of Saigon Beer Group Vietnam Joint Stock Company), and the legal entity, Saigon Beer Group Vietnam Joint Stock Company (headquartered at 264 Le Thanh Ton Street, Ben Thanh Ward, District 1, Ho Chi Minh City), were both prosecuted for infringing industrial property rights under Article 226 of the Penal Code for counterfeiting the trademarks "BIA SAIGON" and "BIA SAIGON, dragon image," which are protected and qualify as well-known trademarks of SABECO.
Defendant Le Dinh Trung and the legal entity, Saigon Beer Vietnam Joint Stock Company, are being prosecuted for the crime of infringing industrial property rights under Article 226 of the Penal Code for the act of counterfeiting the "BIA SAIGON" trademarks.
Accordingly, Mr. Le Dinh Trung was a long-time employee at Saigon Beer, Alcohol and Beverage Joint Stock Company (SABECO). After leaving SABECO in May 2019, Mr. Trung established Saigon Beer Vietnam Group Joint Stock Company.
In July 2019, Saigon Beer Vietnam Joint Stock Company filed an application to register a trademark combining images and words: “BIA SAIGON VIETNAM and a shield with a dragon image” with the Intellectual Property Office. Although he had not yet received the trademark protection certificate, Mr. Trung used this trademark to sign a contract with Biva Beer production facility to produce beer under the brand name "BIA SAIGON VIETNAM".
On June 23, 2020, the Market Management Department of Ba Ria - Vung Tau province discovered more than 4,700 cases of beer, 116,700 beer cans, and 3,300 beer crates bearing the "BIA SAIGON VIETNAM" brand at the BiVa beer production facility. The seized goods were temporarily confiscated and transferred to the police for investigation due to suspected infringement of SABECO's industrial property rights. The total value of the counterfeit BIA SAIGON branded goods, produced by the Biva beer production facility under an order from Saigon Beer Vietnam Joint Stock Company, is over 1.25 billion VND.
Following the initial trial, on March 16, 2023, the People's Court of Ba Ria - Vung Tau province sentenced Saigon Beer Vietnam Joint Stock Company and its representative to a fine of 3.7 billion VND for infringing on industrial property rights and trademarks, specifically the Saigon Beer brand.
Although the case has concluded with appropriate punishment for the perpetrators of the Saigon Beer trademark fraud, these counterfeit products have recently reappeared in Binh Dinh and Binh Duong provinces, causing confusion among consumers with products of the Saigon Beer brand, a leading Vietnamese brand.
With a 148-year history of conquering the market with a wide range of products suitable for various consumer groups, Saigon Beer is a renowned brand in Vietnam with a market share exceeding 40%. The famous Saigon Beer brand has been established in practice through long-term and continuous use in domestic and international markets, through record-breaking investment in production, business, advertising, and marketing, through domestic and international awards, through contributions to the national budget and the community, and certainly through the vast intellectual property assets that SABECO has diligently created and protected.
Counterfeit products bearing the BIA SAIGON LAGER brand, using the old SABECO packaging.
Counterfeiting the BIA SAIGON brand could seriously impact Saigon Beer's revenue and market share. Consumers are also affected, losing their right to use genuine products. More dangerously, they may end up using counterfeit or substandard products, affecting their health.
To create a healthy environment for businesses to develop production and trade, contribute to protecting consumer rights, and safeguard the legitimate rights and interests of trademark owners, authorities need sufficiently deterrent sanctions to strictly punish acts of infringement of businesses' trademark rights.
Counterfeit BIA SAIGON branded products have appeared in Binh Dinh.
What are the penalties for infringing on protected trademarks?
In reality, many organizations and individuals, for the purpose of illicit gain or damaging reputation through unfair competition, seriously infringe upon the trademarks of organizations and individuals that have been registered and protected by trademark law through counterfeiting. This is a violation of the law, and depending on the severity of the violation, counterfeiting may result in administrative penalties or criminal prosecution.
Vietnamese law strictly prohibits acts of infringing industrial property rights, and the buying, selling, and production of counterfeit and imitation goods in any form. All cases of infringement of industrial property rights, production, and sale of counterfeit goods bearing fake trademarks are absolutely prohibited. Any individual or organization violating these laws will be dealt with according to the law, in the following forms: civil penalties, administrative penalties, and criminal penalties.
Article 192 of the 2015 Penal Code, as amended in 2017, stipulates that for acts of producing counterfeit trademarks, trading in counterfeit goods, etc., in addition to administrative penalties, violators may be sentenced to imprisonment from 7 to 15 years, depending on the severity of the violation.
Article 226 of the Penal Code stipulates the following regarding acts of infringement of industrial property rights:
For individuals: administrative penalties can reach up to 1 billion VND and include non-custodial correctional sentences of up to 3 years. A second offense may result in imprisonment from 6 months to 3 years.
For commercial legal entities: penalties may include fines ranging from VND 2 billion to VND 5 billion, or suspension of operations for a period of 6 months to 2 years; prohibition from doing business or operating in certain fields, or prohibition from raising capital for a period of 1 to 3 years.
SABECO
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