Is Cracking Software in Violation of Law?

Currently, I see many individuals providing Windows installation and computer software services to customers. However, to my knowledge, most of this software has been "cracked" or, in other words, is pirated software. This significantly affects legitimate business operators like myself. Moreover, it can pose potential risks to customers. Therefore, I would like to ask the lawyer whether the actions of these individuals violate the law.

Software Cracking Violates the Law

As you mentioned, using illegal or "cracked" software may provide immediate benefits for users, but the downsides of using cracked software are fraught with risks. Cracking not only adversely affects system stability but also carries potential risks of losing important information and inconveniences caused by hidden malicious programs. More importantly, it profoundly impacts users' awareness. Furthermore, this behavior constitutes a legal violation since computer programs are among the types of works protected by copyright under the Intellectual Property Law 2005.

To be specific, “cracking” is an act of interference aimed at disabling the copyright protection features implemented by the manufacturer. Thus, this act constitutes a copyright infringement as stipulated in Clause 12, Article 28 – Intellectual Property Law as follows: "Intentionally removing or disabling technical measures imposed by copyright owners to protect their works."

Article 211 of the Intellectual Property Law stipulates administrative sanctions for acts of intellectual property infringement as follows:

  1. Engaging in acts of intellectual property infringement harmful to consumers or society;

  2. Failing to cease acts of intellectual property infringement despite having been notified in writing by the intellectual property rights holder requesting to stop such acts;

  3. Producing, importing, transporting, or trading counterfeit intellectual property goods as prescribed in Article 213 of this Law, or causing someone else to commit such acts;

  4. Producing, importing, transporting, or trading articles bearing marks or geographical indications identical or confusingly similar to protected marks or geographical indications, or causing someone else to commit such acts.

The Government of Vietnam will specify the acts of intellectual property infringement subject to administrative sanctions, forms, levels of penalties, and procedures for handling such acts.

Organizations and individuals engaging in unfair competition acts concerning intellectual property shall be administratively sanctioned according to the provisions of competition law.

However, if an individual commits acts of intellectual property infringement that constitute a criminal offense, they will be held criminally liable according to the provisions of criminal law (Article 212 – Intellectual Property Law).

Article 225 of the Penal Code 2015, amended by Point a, Clause 52, Article 1 of the Law Amending the Criminal Code 2017, stipulates as follows:

- Any person who, without permission from the copyright holder or related rights holder, intentionally commits one of the following acts on a commercial scale or derives illicit gains from 50,000,000 VND to less than 300,000,000 VND or causes damage to the copyright holder or related rights holder from 100,000,000 VND to less than 500,000,000 VND, or the value of the infringing goods ranges from 100,000,000 VND to less than 500,000,000 VND, shall be fined from 50,000,000 VND to 300,000,000 VND or sentenced to non-custodial reform for up to 03 years:

+ Copying works, audio recordings, video recordings;+ Distributing copies of works, audio recordings, video recordings to the public;

- Offenders who commit the crime in any of the following circumstances shall be fined from 300,000,000 VND to 1,000,000,000 VND or sentenced to 06 months to 03 years in prison:

+ Organized crime;+ Crime committed more than once;+ Illicit profits of 300,000,000 VND or more;+ Causing damage to the copyright holder or related rights holder of 500,000,000 VND or more;+ Infringing goods valued at 500,000,000 VND or more;

- Offenders may also be fined from 20,000,000 VND to 200,000,000 VND, barred from holding certain positions, or prohibited from practicing certain professions or doing certain jobs for 01 to 05 years.

...

Sincerely.

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