Recent inspection tours conducted by government agencies have discovered copyright infringement at many different levels committed by FIEs.

Only a few software used at FIEs were found to be copyrighted, while most of the important software was pirated.

The inspectors, for example, discovered many pirated software products worth billions of dong at Perfect Vietnam, a 100 percent Taiwanese medical technology company in Vinh Loc Industrial Zone in HCM City.

Of the 44 computers examined at the company, the inspectors found 124 software products of different kinds, including Autodesk for graphic design such as AutoCAD and Adobe Photoshop, and Microsoft’s Office software.

Of the 124 software products used, Perfect Vietnam could only show licenses for 10 Microsoft products. Lac Viet Dictionary, a low-cost software, was also found on the list of pirated software.

Deputy Chief Inspector of the Ministry of Culture, Sports and Tourism, Pham Xuan Phuc, noted that the copyright infringement could not be blamed on the lack of information, because 100 percent foreign-owned enterprises understand the Intellectual Property Law.

Using pirated software could be subject to criminal charges and heavy sanctions. Copyright holders can also claim financial compensation for damages caused by copyright violators.

In late 2013, Gold Long John Dong Nai Vietnam was forced to pay VND1 billion in compensation using pirated software and apologize to Microsoft and Lac Viet for the unlicensed use.

An intellectual property lawyer said that 36 states in the US have applied the Unfair Competition Act which requires all manufacturers and exporters to use copyrighted software in production and trade activities.

Lawyer Tran Manh Hung from Baker & McKenzie said that manufacturers and exporters might be sued if they violated the provisions of the act. They could end up being defendants in lawsuits raised by US state attorney generals or business rivals that have offices worldwide.

If they cannot prove they use legal software products, or if they do not stop using pirated software within 90 days after they receive notices, they will be forced to pay compensation and will have their exports seized by government agencies.

But more seriously, Hung said they may be added on to a black list of businesses not welcomed in the US states where the law is applied.