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Identifying “counterfeit goods” under the new regulations in the draft amendment to the commercial law 2026
In the context of the strongly developing digital economy, where methods for counterfeiting goods are becoming increasingly sophisticated, updating the legal framework to identify and handle counterfeit goods is an urgent requirement. The Draft Law amending and supplementing a number of articles of the Commercial Law (expected to be passed in 2026) has introduced groundbreaking changes in the definition of counterfeit goods, particularly the integration of digital elements.
1. Expanding the Concept of Counterfeit Goods: From Physical to Digital
Previously, the concept of counterfeit goods was often narrowly understood within the scope of physical characteristics such as quality, utility, or labeling. However, in Clause 1, Article 1 of the Draft (supplementing Clause 2a, Article 3 of the Commercial Law 2005), this concept has been standardized and expanded:
a) Goods having use value or utility inconsistent with their natural origin or the name of the goods; goods having no use value or utility, or having use value or utility inconsistent with the announced or registered use value or utility;
b) Goods with labels or packaging bearing counterfeit indications of the name and address of the organization or individual manufacturing, importing, or distributing the goods; counterfeit circulation registration numbers, declaration numbers, or barcodes of the goods, or counterfeit packaging of other organizations or individuals; counterfeit origins or places of manufacturing, packaging, or assembling the goods;
c) “Counterfeit stamps, labels, and packaging” include decals, labels of goods (including electronic labels and digital product/goods passports), packaging of goods, quality stamps, quality marks, traceability stamps, warranty cards, shrink wrap films, or other items of business organizations or individuals bearing counterfeit indications of the names and addresses of other organizations or individuals; counterfeit commercial names, trade names, barcodes, circulation registration numbers, or declaration numbers of goods or packaging of other organizations or individuals.
The most notable point is the addition of “electronic labels” and “digital product/goods passports” to the list of stamps, labels, and packaging that can be counterfeited. This is a pioneering step to adapt to the current popular trend of traceability using Blockchain and QR Code technologies.
2. Criteria for Identifying Counterfeit Goods under the New Draft
Based on the Draft’s content, enterprises and consumers can identify counterfeit goods through three main groups of criteria:
| Criteria Group | Detailed Content |
| Nature of goods | Use value or utility is inconsistent with the natural origin or the announced/registered content. |
| Counterfeit indications | Counterfeit name and address of the organization or individual manufacturing, importing, or distributing the goods;
Counterfeit circulation registration numbers, declaration numbers, or barcodes of goods or packaging of other organizations or individuals; Counterfeit origin of goods or place of manufacturing, packaging, or assembling the goods. |
| Stamps, labels, and packaging | Counterfeiting electronic labels, digital passports, traceability stamps (QR Codes), warranty cards, etc., to deceive regarding origin and quality. |
3. Impacts on Business Operations
The legalization of the concepts of counterfeit goods, electronic labels, and digital passports will create a more solid legal protection framework for legitimate enterprises and merchants. Once brand protection tools using technology are legally recognized as subjects capable of being counterfeited, functional agencies will have the legal basis to strictly handle attacks on an enterprise’s traceability system.
However, this also poses challenges for enterprises and merchants in managing their digital data systems. Once a product’s digital passport is copied or forged, the damage to brand reputation will be much greater than that caused by traditional counterfeit goods.
4. Legal Advice from LS Law Firm
With the upcoming changes, we recommend that enterprises proactively:
- Review the labeling system: Ensure that information on origin and barcodes strictly complies with the new regulations.
- Digitize the traceability process: Use highly secure electronic labels to protect products against the risk of high-tech counterfeitin.
- Monitor the legal roadmap: The Draft is expected to take effect from March 1, 2027; enterprises need to prepare technically and in product declaration dossiers prior to this date.
At LS Law Firm, we always accompany enterprises in brand protection and compliance with the latest commercial legal regulations. If you have any inquiries regarding how to protect your products against the issue of counterfeit goods, please contact us for in-depth consultation.
LS LAW FIRM
Reference source: Draft Law amending and supplementing a number of articles of the Commercial Law, Competition Law, Law on Foreign Trade Management, and Law on Protection of Consumers’ Rights (2026).
