How much is the fine for using unlicensed software? Penalty details and estimated implementation costs

Using unlicensed software has long been considered a “shortcut” to save budget for many businesses in Vietnam. However, behind that free price tag lie unforeseen legal risks that can lead to suspension of business operations or even criminal liability for company leaders. According to reliable sources, the total cost of fines and remedial measures is usually 2–3 times higher than investing in genuine software licenses from the start.

This article breaks down the actual numbers to clearly show the price businesses have to pay when violating intellectual property rights.

Penalty details for using unlicensed software

The act of using unlicensed software is determined as copying works without the permission of the copyright owner. According to Article 16 of Decree 341/2025/ND-CP, administrative penalties are categorized in detail based on the value of the infringing goods or the level of damage caused to the copyright owner.

For individual violators

Depending on the scale of illegal profits or damage value, individuals may face the following penalty brackets:

• Fine from 5 – 10 million VND: If making illegal profits under 10 million VND or causing damage to the owner under 20 million VND.
• Fine from 10 – 20 million VND: If making illegal profits from 10 to under 20 million VND or causing damage to the owner from 20 to under 40 million VND.
• Fine from 20 – 30 million VND: If making illegal profits from 20 to under 30 million VND or causing damage to the owner from 40 to under 60 million VND.
• Fine from 30 – 50 million VND: If making illegal profits from 30 to under 50 million VND or causing damage to the owner from 60 to under 100 million VND.

For organizations and business entities

Penalties for organizations are always higher than for individuals for the same level of violation:

• Fine from 10 – 20 million VND: If making illegal profits under 20 million VND or causing damage under 40 million VND.
• Fine from 20 – 40 million VND: If making illegal profits from 20 to under 40 million VND or causing damage from 40 to under 80 million VND.
• Fine from 40 – 60 million VND: If making illegal profits from 40 to under 60 million VND or causing damage from 80 to under 120 million VND.
• Fine from 60 – 100 million VND: If making illegal profits from 60 to under 100 million VND or causing damage to the owner from 120 to under 200 million VND.

Special note: In cases where the illegal profit or damage value cannot be determined, the fine for this reproduction act can range from 30 – 40 million VND.

Mandatory remedial measures

In addition to paying cash fines, businesses are required to implement strict remedial measures according to regulations:

• Forced destruction or removal: Completely delete all infringing software copies on computers and network environments.
• Return of profits: Forced to return all illegal profits earned from using pirated software to the copyright owner.

Criminal prosecution for using unlicensed software

If the violation is large-scale or causes severe damage exceeding administrative sanctions, businesses and individuals will be criminally prosecuted under Article 225 of the 2015 Criminal Code (amended in 2017).

For individuals (business owners or perpetrators)

• Penalty bracket 1: Fine from 50 – 300 million VND or non-custodial reform for up to 03 years if making illegal profits from 50 to under 300 million VND.
• Penalty bracket 2: Fine from 300 million to 1 billion VND or imprisonment from 06 months to 03 years for organized crime or making illegal profits over 300 million VND.
• Additional penalties: May be fined an additional amount of up to 200 million VND and banned from practicing or doing certain jobs for 01 to 05 years.

For commercial legal entities (companies)

Penalties for businesses are extremely severe to deter acts of profiting from copyright infringement:

• Fine from 500 million to under 2 billion VND: For illegal profits from 200 million VND or causing damage to the owner from 300 million VND.
• Fine from 2 billion to 5 billion VND: For repeat offenses or making illegal profits over 300 million VND.
• Suspension of operations: Businesses may have their operations suspended for a period ranging from 06 months to 02 years.
• Other bans: Prohibition from conducting business in certain fields, prohibition from raising capital for 01 to 03 years, and an additional fine of up to 500 million VND.

Estimated cost for implementing licensed software

Instead of facing fines of up to billions of dong, investing in genuine licensed software is a safe and professional choice. Below is an estimated cost breakdown for a medium-sized enterprise (about 45 computers).

Estimated investment and maintenance costs

Category	Quantity	First-year cost	Maintenance cost (from year 2)
Windows 11 Pro	30	~185.000.000 – 210.000.000 VNĐ	0 VNĐ (Vĩnh viễn)
Microsoft 365	40	~38.000.000 – 45.000.000 VNĐ	~38.000.000 – 45.000.000 VNĐ
Adobe Creative Cloud	2	~35.000.000 – 48.00.000 VNĐ	~35.000.000 – 48.00.000 VNĐ
Total		~258.000.000 – 303.000.000 VNĐ	73.000.000 – 93.000.000 VNĐ

*Note: The costs above are estimated and for reference purposes only.

Comparison with penalty scenario

If a business chooses to use pirated software to “save” 304.5 million VND initially, they will face:

• Minimum administrative fine from 100 million VND
• Risk of criminal fines up to 5 billion VND
• Costs associated with business disruption, data loss, and brand reputation damage.

Non-legal consequences that businesses often overlook

Besides fine figures, using unlicensed software also causes hidden damages that businesses can hardly measure.

Risk of information security breaches

Cracked software often contains malware, viruses, or spyware. When installed on the system, businesses open the door for hackers to infiltrate, steal customer data, trade secrets, or face extortion via ransomware.

Lack of support and updates

When using genuine licenses, businesses receive technical support and regular security patches. Conversely, pirated software frequently encounters errors, cannot be updated, and significantly reduces work efficiency.

Impact on brand reputation and partnership opportunities

In the international business environment, compliance with intellectual property rights is a mandatory standard. Being caught using pirated software can cause businesses to lose vital partnership opportunities with major partners.

Advice to help businesses avoid legal risks

1. Conduct regular audits: Check the number of computers and the list of software currently in use.
2. Plan the budget: Allocate licensing costs according to a roadmap to reduce financial pressure.
3. Choose reputable suppliers: Ensure software purchases are made from authorized dealers to receive full licensing certificates.
4. Use alternative software: Consider legal open-source software if the budget is not sufficient for high-end software suites