Global Vietnam Lawyers would like to introduce our valued readers to an article by Lawyer Vu Lam Dong Anh titled “Digital asset management: When a domain name is more than just a web address” published in The Saigon Times, 23-2026 (1.851) on June 4, 2026.
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Amid the rapid expansion of the digital economy, domain names have evolved far beyond their purely technical function. Today, they serve as a critical identifier of commercial origin and brand presence. Yet the tension between domain name registration rules and intellectual property rights has created legal “flashpoints” that can affect virtually anyone. How can businesses safeguard their “digital sovereignty” when confronted with a “Cease & Desist Letter”?
The nature of the conflict: When “First to Register” confronts “Priority Rights”
A recent dispute involving an international bubble tea brand has once again prompted the business community to re-examine a classic governance loophole that has long existed in the digital landscape. Acting through a prominent intellectual property law firm, the brand reportedly issued a Cease & Desist Letter to the owner of a domestic domain name deemed identical or confusingly similar to its trademark, seeking the return of the digital asset. The standoff between the influence of a global brand and the determination of a local domain owner has exposed a fundamental reality: significant misalignments continue to exist within the current framework governing digital resources.
At present, trademark registration and domain name registration are governed by separate legal instruments and administered under entirely different regulatory mechanisms.
Domain name registration: Governed by the Telecommunications Law 2023, domain names are allocated based on the principles of equality, non-discrimination, and the “first come, first served” rule. The registration process is highly streamlined and can typically be completed within three working days following the submission of valid documentation.
Trademark registration: Governed by the intellectual property law and follows a far more rigorous process involving three stages: formality examination, publication of the application, and substantive examination. In practice, the trademark registration process often spans 12 to 24 months and is subject to extensive review and legal scrutiny.
This substantial disparity in both duration and procedural complexity has inadvertently created a significant gap in the market. A party may secure a valuable domain name within days, while the legitimate brand owner remains in the lengthy process of awaiting trademark registration and official protection.
“Legal weapons” and the boundary of priority rights
A common misconception among businesses is that ownership of a trademark automatically entitles them to ownership of the corresponding domain name. In reality, Vietnamese law clearly provides that trademark protection does not confer automatic priority rights over domain names.
The rights of a trademark owner are triggered only when the other party’s use of a domain name constitutes an act of unfair competition. Under Article 130 of the IP Law, an act may be deemed unfair competition where a party registers or uses a domain name identical or confusingly similar to a protected trademark in bad faith and with the intention of exploiting the trademark’s reputation for commercial gain.
From a business perspective, if you are the holder of a disputed domain name, your strongest defense is to prove that the domain name was registered for legitimate commercial purposes, is unrelated to the complainant’s field of business, and was never intended to extort, mislead, or capitalize on the complainant’s reputation.
A “proactive defense” strategy: Turning a domain name into a legal fortress
To avoid losing a domain name in the face of a legal challenge, domain owners must understand the legal safeguards available under Vietnam’s Intellectual Property Law and related regulations, including Decree No. 147/2024/ND-CP. Among these, demonstrating good-faith use is often the decisive factor.
First, put the domain name to actual use. One of the most common mistakes made by domain owners is leaving a domain “parked” or registering it without ever developing it. Such inactivity creates the strongest basis for allegations of “domain name speculation” or cybersquatting. If you own a domain name, the best course of action is to launch a genuine project on it as soon as possible. A functioning website can serve as compelling evidence against claims of “bad faith” or “speculative intent”. Whether it is a landing page for an educational initiative, a community project, or even a personal blog, a demonstrable record of use helps establish that the domain is being utilized for a legitimate purpose.
Second, maintain a clear distinction between business sectors: If you own domain name “X” but operate in a field entirely unrelated to a company or trademark owner using the same name, your prospects of retaining the domain name are significantly stronger. Trademark protection is granted by class, and a domain name may be retained so long as it does not create confusion as to the origin of goods or services.
Third, maintaining records and evidence relating to the conception, use, and development of the domain name is of particular importance. Such records may include transaction histories, annual renewal fee receipts, documents and emails evidencing the idea and planning of a project associated with the domain name before any dispute arose, as well as public notices on the website regarding ownership rights and disclaimers intended to prevent users from being misled as to any connection with identical or similar trademarks.
Finally, respect the law—but do not yield to unreasonable demands. When receiving a Cease & Desist Letter, domain owners should remain calm and conduct a thorough review of the legal basis of the claim, paying particular attention to timing, and whether the underlying business has been conducted independently, rather than being built upon the reputation of the trademark owner.
The lesson of “digital sovereignty” in modern business
Today, a domain name is far more than a web address. It serves as a commercial gateway, a brand identifier, and in many cases, a valuable business asset. Disputes involving domain names underscore a fundamental reality of the digital economy: rights do not arise automatically, but they must be established, maintained, and defended proactively. For businesses, the key lesson is not merely how to respond when a dispute arises, but how to build a solid legal foundation from the outset. In this arena, those who prepare early and thoroughly are often the ones best positioned when disputes arise.
