Evolution of the Thai regulatory regime on hemp and cannabis, for business opportunities

Commercial opportunities open up, as, from June 9, 2022, cultivation of cannabis and hemp plants will be partially decriminalized in Thailand.

The Thai law defines Cannabis sativa L. subsp. Indica as “cannabis“, and Cannabis sativa L. subsp. Sativa having no more than 1.0 % THC by dry weight in its leaves and inflorescence as “hemp“. The Narcotic Actof 1979classified cannabis and hemp as category 5 narcotics, whichmeant all activities related to the plants were strictlyregulated by the Act.

Currently, the extent to which the production and use of cannabis, hemp, and related products are legal or not is a topic of great debate and concern in the country. In fact, in 2019, Thailand became the first Southeast Asian country to legalize the medical use of substances listed as category 5 narcotics, with Amendment (No. 7) of the Narcotics Act B.E. 2522 (1979) giving the Narcotics Control Committee the duty to advise the Ministry of Public Health whether to issue the appropriate license to produce, dispose of, import, export or possess the substances.

Following the delisting, a series of implementing regulations were issued to allow applications for the license to produce, dispose of, and processing of the materials for specified purposes only and under strict official control, namely:

  1. for the purposes of implementing the objectives of Stateagencies, except for the purposes under items 2 to 6below, in which cases the State agency shall apply for alicense according to their intended purposes;
  2. for utilization of fibers in accordance with tradition and culture, and only for use within the family, provided that each family is allowed to have not more than one rai [2 ½ rai = 1 acre] of the cultivated land;
  3. for commercial or industrial purposes;
  4. for medical purposes:
  5. for the purposes of study, test, research, or propagation;
  6. for the purposes of producing certified seeds.

Applicants for the license must meet these very strict qualifications, and private entities or group of farmers are only eligible for a cannabis license if they operate jointly with a state agency.

Based on the new Narcotic Code that came into force at the end of 2021, the Notification RE Naming Category V Narcotics has iust been issued and will come into force on the 9 June 2022, once again defining extracts from all parts of the cannabis genus plants containing THC not exceeding 0.2% by weight, which are permitted to be extracted from cannabis or hemp planted within the country, and designating extracts from cannabis or hemp seeds planted within the country as an exception not regarded as Category V Narcotics. Thus, from 9 June 2022, hemp/cannabis extracts containing THC not exceeding 0.2% by weight will be delisted from narcotics List 5 according to the Notification of the Ministry of Public Health. As a result, the public is allowed grow hemp/cannabis plants at home, but the products cannot be used for commercial purposes without additional licenses. The Deputy Secretary-General of the Food and Drug Administration also added that those interested in importing the above-mentioned substances would have to seek permission in accordance with the Plant Propagation Act B.E. 2518 and the Plant Quarantine Act, B.E. 2507, if it is an extract imported from abroad, it is classified as a dangerous drug.

At the same time, a new separate draft bill providing details on the legal use of cannabis, including its production and commercial use, and guidelines on recreational use, was recently presented to the Parliament for its review and approval.

Ms. Mananya Thaiset, Deputy Minister of Agriculture and Cooperatives, revealed since the latest notification of the Minister of Public Health, the Department of Agriculture and Cooperatives has been preparing to issue and implement all regulatory and practical measures to support the farmers with this opportunity. In particular, the Department of Agriculture has the power to curb the free import of seeds and inflorescences of cannabis genus from abroad, according to the Plant Quarantine Act (1964). Moreover, the Department is also drafting agricultural standards and good agricultural practices for cannabis, hemp and kratom as guidelines for planting, protecting, harvesting, and post-harvesting, aimed at raising the quality of cannabis and hemp plants to international standards.

As of now, the regulation for the processing and commercialization of cannabis and hemp components, by-products and end-products is still under review, and it is unclear whether and when the country will see a complete legalization of cannabis and hemp.

You can contact ILCT for further clarifications on the issue and potential opportunities. Meanwhile, we will follow up and report on any further legal development.

 

Thailand: Fast-Track Trademark Filing System

In its continuous efforts to improve the efficiency of IP-related registration services in Thailand and to reinforce filing services in the digital age, the Department of Intellectual Property (DIP) has implemented a “Fast-Track Trademark Filing System” that provides three processes, namely for new trademark applications, for renewal applications, and for trademark registration certificates to be presented to other Thai Government Agencies by business owners.

 

Thailand: Patents – Deadline Extension

Thailand: Patents – Deadline Extension for office action response and document submission

Due to the current outbreak of COVID-19, which is becoming increasingly spreading in Thailand, and the implemented public health countermeasures, Thailand Department of Intellectual Property (DIP) has announced an extension for office action response and document submission for: Patent for Invention, Petty Patent and Design Patent to help ease burden of applicants affected by COVID-19.

This announcement became effective on July 12, 2021. The detail of this announcement is summarized below.

  1. New Extension Date: Any deadlines for office action response or document submission as requested by the examiner that originally fall between July 12 – August 31, 2021
    will be automatically postponed to August 31, 2021.
  2. New Response/Submission Date: Applicants with the response or submission deadline as mentioned in (1) may also provide office action response or submit the required document within September 1 – 30, 2021.

Any applicants that do not wish to take advantage of this extension may still submit the office action response or submit the required document as per the original deadline.

In conclusion, applicants that are eligible as stipulated in (1) will now have until September 30, 2021 to respond to office action or submit the required document. If you need further assistance, please contact: ipgroup@ilct.co.th

 

 

 

 

 

Announcement on New Regulations for Offering and Trading of Digital Assets

Announcement on New Regulations for Offering and Trading of Digital Assets

Announced earlier this month, the Thai Securities and Exchange Commission (“SEC”) has implemented two new regulations regarding the offering and trading of digital assets (i.e. digital tokens). The detail of this announcement is explained below.

1). Restricted Digital Tokens

Digital Asset Exchange shall not offer or trade the following digital tokens:

  1. Meme token (meme coin) means any digital tokens without any real collateral or value supporting it. The value of a meme coin mostly depends on social media or internet trends. In a sense, meme coin is considered an internet’s joke that is popular and eventually became a meme coin available for trading.
  2. Fan token means any digital tokens that represent a personal preference toward a specific individual, club, or group. Generally, a fan token awards the owner with exclusive rights to a specific individual, club, or group. This could be in a form of voting rights, VIP experiences, or exclusive merchandise from the said individual, club, or group.
  3. Non-fungible token (NFT) is a unique digital token that cannot be traded with any other tokens. NFT generally represents an exclusive right to a certain piece of digital art or music (e.g. Beeple or ShadyCon). It can be said that NFT is a new form of collectible, in this case, a “digital collectible”.
  4. Any digital tokens to be utilized in a blockchain transaction issued by the Digital Asset Exchange itself, or any individuals or entities that may have a connection to the Digital Asset Exchange, include the following:
    1. Members of the Board of Directors, CEO, or any persons with the authority to manage the business;
    2. Spouse or any persons that can be considered as being in a relationship with those mentioned in (A);
    3. Any legal entities that have the authority to manage the business of those mentioned in (A);
    4. Any head offices, subsidiaries, or affiliates of the Digital Asset Exchange.

2). Special Exemption

Any persons or entities as listed in (4) shall be eligible for a special exemption on offer or trade of a digital token provided that they strictly follow the rules and regulations as set forth within the whitepaper.

This announcement shall take effect from June 11, 2021.

Should you require further assistance, please contact us at: law@ilct.co.th.

 

 

Thailand: Postponement of Personal Data Protection Act (PDPA) Enforcement

Thailand: Postponement of Personal Data Protection Act (PDPA) Enforcement

Effective on May 9, 2021, the Royal Thai Government Gazette has published the official postponement of the enforcement of Thailand Personal Data Protection Act B.E. 2562 (2019) (PDPA) to June 1, 2022.

Thailand’s PDPA was originally scheduled to come into effect on June 1, 2021. The PDPA is considered as the first local law designed to govern data protection in the digital age. It is comparable to the European General Data Protection Regulation (GDRP). Key aspects of the PDPA include: data processing, data collection, data storage, and data consent protocols.

The PDPA has created multiple challenges for both local businesses and foreign businesses alike. Seeing the enforcement challenges with the ongoing COVID-19 crisis, the PDPA has been postponed for one additional year.

With this being said, businesses are still required to comply with the Data Protection Standard as prescribed by MDES. The standard includes such regulations as:

  • Implementation of adequate data access and storage protocols;
  • Assignment of user access management and responsibilities to prevent unauthorized access;
  • Implementation of data logs including data deletion log, data transfer log, and data amendment log.

In conclusion, businesses are given one additional year to implement adequate data protection protocols. As such, it is encouraged that proper understanding and preparation be made ready before the PDPA comes into full effect on June 1, 2022.

As this is not an official announcement in the Royal Thai Government Gazette at this time, we will keep you posted on the development as the information becomes available. Should you require further assistance please contact: law@ilct.co.th.

Thailand: First Action Fast Track Trademark Filing System

Thailand: First Action Fast Track Trademark Filing System

Announced on April 5, 2021, Thailand Department of Intellectual Property (DIP) has implemented a “First Action Fast Track” trademark filing system. The new system aims to elevate local trademark filing service, as well as, facilitating convenience and rapid trademark filing in the modern world.

First Action Fast Track system expedites the Trademark Registrar to issue the first office action within 6 months from the filing date at no extra official fees. To be eligible, the applicant must comply with the following requirements:

  1. The applied goods or services must not exceed 10 items;
  2. The description of goods or services must comply with DIP’s standard trademark goods/services list (see: DIP List);
  3. Any amendment, recordal of trademark assignment or inheritance, or request to prove acquired distinctiveness through use shall not be made on or after filing.
  4. The trademark application must be filed at DIP, authorized governmental offices, via registered mail, or DIP’s e-Filing system.

Those wishing to take advantage of the First Action Fast Track trademark filing system must comply with the above requirements to be eligible. Overall, this is good news for trademark applicants that are looking to quickly acquire trademark protection in Thailand.

If you need further assistance, please contact: ipgroup@ilct.co.th.

Thailand: Extension of Annual General Meeting

Thailand: Extension of Annual General Meeting

Due to the current local COVID-19 outbreak and newly imposed public health countermeasures in the affected areas as stipulated by each provincial authority. Thailand Department of Business Development (DBD) has announced on 26 April 2021 that any Annual General Meeting (“AGM”) scheduled to be held during April 26 and April 30, 2021, may now be postponed for one additional month.

Once the rescheduled AGM has been held, the company is required to file a letter explaining the cause of the postponement along with the financial statements, a list of shareholders, a copy of the minutes of the AGM or a copy of the annual report with related authority as appropriate.

Additionally, companies may still hold the AGM via a video conference. Our previous article on this holding of the AGM via a video conference can be found here: AGM via Video Conference.

Please also be noted that under the Thai revenue code, businesses are still required to file the financial statements within 150 days from the end of relevant fiscal period, this is a general requirement that would normally accompany the AGM in normal circumstances. Currently, the Thai Revenue Department has yet to issue any announcement in relation to the relaxation on the 150-day filing period. Therefore, businesses may still be susceptible to penalties under the revenue code despite the AGM extension as announced by the DBD.

We will keep you posted on the development as new information become available, if you have further questions, please contact: law@ilct.co.th.

 

Thailand: Patents – Deadline Extension

Thailand: Patents – Deadline Extension

Due to recent local COVID-19 outbreak and the implemented public health countermeasures, Thailand Department of Intellectual Property (DIP) has announced an extension for office action response and document submission for: Patent for Invention, Petty Patent and Design Patent.

This announcement became effective on April 16, 2021. The detail of this announcement is summarized below.

  1. New Extension Date: Any deadlines for office action response or document submission as requested by the examiner that originally fall between April 16 – May 31, 2021 will be automatically deferred to May 31, 2021.
  2. New Response/Submission Date: Applicants with the response or submission deadline as mentioned in (1) may also provide office action response or submit the required document within June 1 – 30, 2021.

Any applicants that do not wish to take advantage of this extension may still submit the office action response or submit the required document as per the original deadline.

In conclusion, applicants that are eligible as stipulated in (1) will now have until June 30, 2021 to respond to office action or submit the required document. If you need further assistance, please contact: ipgroup@ilct.co.th.

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