The Enforceability of Liquidated Damages Clauses in IP-Related Agreements in Vietnam

As the world of business changes at a breathtaking pace, the growing importance of knowledge and innovation has placed intellectual property (IP) assets under the spotlight and highlighted the necessity of effectively taking advantage of such assets, while minimizing the risk of infringement. To that end, IP rights holders rely on a variety of measures when cooperating with third parties for IP commercialization. One such measure is a liquidated damages clause (“LD clause”), a quick and straightforward way to determine the amount of compensation payable by a breaching party to the aggrieved party in the event of IP infringement or another contract violation.