Using unlicensed software has long been considered a “shortcut” to save budgets at many Vietnamese businesses. However, behind that free access are unforeseeable legal risks that can lead to the suspension of business operations or even criminal liability for the person in charge. According to reliable sources, the total cost of fines and remediation is often 2-3 times higher than investing in licenses from the beginning.
This article will break down the actual figures to clearly show the price businesses have to pay when violating intellectual property rights.
Using unlicensed software
Details of the fines for using unlicensed software
The use of unlicensed software is determined to be the act of reproducing a work without the permission of the copyright owner. According to Article 16 of Decree 341/2025/ND-CP, administrative penalties are classified in great detail based on the value of the infringing goods or the extent of damage caused to the owner.
For individuals in violation
Depending on the scale of illegal profits or the value of damages, individuals may face the following penalty ranges:
Fine from VND 5 – 10 million: If illegal profits are under VND 10 million or damage caused to the owner is under VND 20 million.
Fine from VND 10 – 20 million: If profits range from VND 10 million to under VND 20 million or damage caused to the owner ranges from VND 20 million to under VND 40 million.
Fine from VND 20 – 30 million: If profits range from VND 20 million to under VND 30 million or damage caused to the owner ranges from VND 40 million to under VND 60 million.
Fine from VND 30 – 50 million: If profits range from VND 30 million to under VND 50 million or damage caused to the owner ranges from VND 60 million to under VND 100 million.
For organizations and businesses in violation
The fines imposed on organizations are always higher than those imposed on individuals for the same level of violation:
Fine from VND 10 – 20 million: If illegal profits are under VND 20 million or damage caused is under VND 40 million.
Fine from VND 20 – 40 million: If profits range from VND 20 million to under VND 40 million or damage caused ranges from VND 40 million to under VND 80 million.
Fine from VND 40 – 60 million: If profits range from VND 40 million to under VND 60 million or damage caused ranges from VND 80 million to under VND 120 million.
Fine from VND 60 – 100 million: If profits range from VND 60 million to under VND 100 million or damage caused to the owner ranges from VND 120 million to under VND 200 million.
Special note: In cases where the amount of illegal profits or the value of damages cannot be determined, the fine for this act of reproduction may range from VND 30 – 40 million.
Mandatory remedial measures
In addition to paying fines, businesses are required to implement strict measures as prescribed:
Mandatory destruction or removal: Completely delete infringing software copies from computers and the network environment.
Profit reimbursement: Return to the copyright owner all illegal profits obtained from using pirated software.
Criminal liability for using unlicensed software
If the violation is large-scale or causes serious damage beyond the scope of administrative handling, businesses and individuals will face criminal liability under Article 225 of the 2015 Criminal Code (amended in 2017).
For individuals (business owners or offenders)
Penalty framework 1: A fine of VND 50 – 300 million or non-custodial reform for up to 03 years if illegal profits range from VND 50 million to under VND 300 million.
Penalty framework 2: A fine of VND 300 million to VND 1 billion or imprisonment from 06 months to 03 years for cases involving organized crime or profits exceeding VND 300 million.
Additional penalties: May include an additional fine of up to VND 200 million and a ban from practicing for 01 to 05 years.
For commercial legal entities (companies)
The penalties for businesses are extremely severe in order to deter profiteering from copyright infringement:
Fine from VND 500 million to under VND 2 billion: For acts generating illicit profits of VND 200 million or causing damage to the owner of VND 300 million.
Fine from VND 2 billion to VND 5 billion: For cases involving repeated offenses or profits exceeding VND 300 million.
Suspension of operations: Businesses may have their operations suspended for a definite period from 06 months to 02 years.
Other prohibitions: Prohibition from doing business in certain fields, prohibition from raising capital for 01 to 03 years, and an additional fine of up to VND 500 million.
Legal risks of using unlicensed software
Estimated costs of implementing licensed software
Instead of facing fines amounting to billions of VND, investing in genuine software is a safe and professional move. Below is an estimated cost for a medium-sized business (approximately 45 computers).
Estimated investment and maintenance costs
Item | Quantity | First-year cost | Maintenance cost (from year 2) |
Windows 11 Pro | 30 | ~VND 185,000,000 – 210,000,000 | VND 0 (Perpetual) |
Microsoft 365 | 40 | ~VND 38,000,000 – 45,000,000 | ~VND 38,000,000 – 45,000,000 |
Adobe Creative Cloud | 2 | ~VND 35,000,000 – 48.00.000 | ~VND 35,000,000 – 48.00.000 |
Total | ~VND 258,000,000 – 303,000,000 | VND 73,000,000 – 93,000,000 | |
* Note: The above costs are estimates for reference purposes only
Comparison with the penalty scenario
If a business chooses to use pirated software to “save” VND 304.5 million initially, it will face:
A minimum administrative fine of VND 100 million
The risk of criminal penalties of up to VND 5 billion
Costs of operational disruption, data loss, and damage to brand reputation.
Summary of software costs
Non-legal consequences that businesses often overlook
Besides the figures related to fines, using unlicensed software also causes hidden damages that businesses may find difficult to quantify.
Risk of information security breaches
“Cracked” software often contains malware, viruses, or spyware. When installed into the system, businesses effectively open the door for hackers to gain access, steal customer data and business secrets, or be extorted by ransomware.
No support and updates
When using genuine licensed software, businesses receive technical support and regular security patches. In contrast, pirated software frequently encounters errors, cannot be updated, and causes work performance to decline significantly
Impact on brand reputation and partnership opportunities
In the international business environment, intellectual property compliance is a mandatory standard. Being discovered using pirated software can cause businesses to lose important partnership opportunities with major partners.
Advice to help businesses avoid legal risks
Conduct regular reviews: Check the number of computers and the list of software currently in use.
Plan the budget: Allocate licensing costs according to a roadmap to reduce financial pressure.
Choose reputable suppliers: Ensure that software is purchased from authorized distributors to receive complete license certificates.
Use alternative software: Consider legal open-source software if the budget is not yet sufficient for advanced software suites.
Advice to help avoid legal risks
Using unlicensed software is no longer a matter of saving costs, but a dangerous gamble with the survival of a business. Legal risks ranging from fines of hundreds of millions to billions of VND, along with the risk of imprisonment for business owners, are the clearest evidence that “a small mistake can lead to major consequences”. Invest in licenses today to protect your business’s assets and future.