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2 Apr

Thailand: COVID -19 State of Emergency Announcement

News & Articles COVID-19, thailand, curfew, lockdown

To flatten the curve of the quickly rising COVID-19 cases, the Thai government has declared state of emergency as per the “Emergency Decree on Public Administration in Emergency Situation B.E. 2548 (2005)” (“EPAES”) which will provide more enforcement power to the Prime Minister with the approval from the Council of Ministers to perform actions and impose policies in unusual circumstances. This has taken effect since March 26, 2020 (end date to be determined) in the Bangkok metropolis and other provinces. The EPAES is nationwide, but the governor of each provinces will have the authority given by the Prime Minister plus the approval and the Council of Ministers to implement new rules and regulations as appropriate. Overall, the Prime Minister will have administrative power to counteract the ongoing outbreak, it is likely that stricter quarantine protocol will be imposed if COVID-19 remain unchecked.

What are the new standard protocols in this situation?

Social distancing rules and maximum hygiene protocols, including the use of all necessary goods such as: facemask, disinfectant gel and infection screening etc.

Each province is responsible for its own quarantine protocol, this is upon the discretion of the province’s respective governors. Rules and regulations may vary. Therefore, residents should be mindful of the local protocol.

What will happen now?

Currently, the curfew is from 10.00 pm – 04.00 am which will take effect from 3 April 2020 onwards (with certain exceptions). The hours may change depending on the local situation, there will be officers enforcing the curfew;
Pharmacies, banks, supermarkets, retailers of essential goods will remain opened, except during curfew hours;
Public transportation will be suspended during curfew hours;
Movements between provinces will be restricted with checkpoints (exemptions apply);
Close of border (exemptions apply);
Thais are “discouraged” to travel aboard, foreigners may still leave;
No hoarding or stockpiling of essential goods;
No public gathering that could increase social risks (i.e. unrest and spread of infection etc.);
Public venues with large crowd are to be closed (previously announced);
Censorship of media (primarily aim toward fake news);
All public and private hospitals are ordered to make availability;
Schools, universities, hotels, stadiums, temples gathering halls are requested to be converted into field hospitals (if necessary);
Governmental facilities and authorities will still open but under new operating hours.

What does the EPAES implies?

The Public are not allowed outside of his/her residence during curfew hours;
Prohibition of news media, articles or any related materials which may contain false information or disrupt public order;
Cease of all public and private transportations (exemptions to be determined);
No entry into any public buildings, institutions or facilities;
Evacuation of the public in areas that are deemed unsafe.

What are the powers of the officers?

To arrest any suspected individual/entity that is believed to cause emergency situation;
To summon any suspected individual;
To seize any weapons, goods, chemical substances or any related objects that are believed to cause emergency situation;
To search, disassemble, remove or destroy any buildings, structures or barriers for enforcement purposes;
To censor, suppress or suspense any media that is found to disrupt public order;
To order the cease, order or suppress of any actions that are found to disrupt public order;
To debar any individuals from leaving Thailand;
To evict alien citizen that is believed to cause emergency situation from Thailand;
To place restrictions on sale of arms, weapons, chemical substance or any other materials that may provoke unrests;
To allow military personnel to assist with the enforcement of EPAES.

Penalties

Failure to comply with the EPAES will result in a fine up to THB 40,000, two years imprisonment or both. Other penalties may also apply, for example: violations of the Communicable Disease Act B.E. 2558 (2015) (“CDA”).

All and all, we have been seeing the heightening of protocols to match the aggression of COVID-19, we expect more to be enacted in the coming days, we will keep you posted as the situation continues to unfold. For further assistance, please contact us at law@ilct.co.th.

For the full article (PDF) please download here Download

1 Apr

Covid-19 Grace Period for Intellectual Property (IP) related Prosecution

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News & Articles COVID-19, thailand, IP, ipgraceperiod, ipextension, intellectualproperty

As Covid-19 (“Coronavirus”) continues rampage through the country, Thailand Department of Intellectual Property (“DIP”) will be allowing applicant/owner to file a request for a grace period extending the usual deadline. This grace period is preliminary provided for those who is directly affected by Covid-19. Further explanations are below.

What does this Covid-19 grace period cover?

Everything that is under the administration of DIP, including: patents, petty patents, design patents, trademarks, geographical indications and topography of integrated circuits.

This grace period will apply to all IP related prosecution process, such as: application deadline, opposition deadline, registration deadline, office action deadline or any payment deadline.

Who can apply for this?

The owner/applicant.

How does this work?

For individual, he/she must submit relevant documents showing evidence of sickness and treatment of Covid-19. In short, documents showing that Covid-19 has directly affected the ability to handle IP prosecution.

For company, it must prove that Covid-19 has directly impact and hinder the handling process of the related IP prosecution process. If the CEO or director became ill from Covid-19, he/she can submit related medical document on behalf of the company.

It is uncertain whether agent/lawyer can make a similar claim. At this time, it would seem that DIP will only allow a request made directly by the applicant/owner.

What are the required documents?

Copy of the passport of the affected person (important);
Medical certificate showing Covid-19 infection (important);
Document proving resident within Covid-19 outbreak areas (important);
Document verifying high-risk individual, close proximity of the infected or close proximity to those returning from high-risk areas;
Any document that may prove direct impact from Covid-19 outbreak;
Document verifying Covid-19 infection or outbreak have ended (important);

It is unclear as to how the Thai examiner/registrar will review these documents. Nonetheless, we have marked the important documents that should be submitted, and we will further discuss with the examiner/registrar if this is the case.

What happen after I submit the documents?

Once submitted, the examiner/registrar will review the request on a case-by-case basis. If approved, the applicant/owner will be granted a 30 days extension from the approval date. On the other hand, if the request is rejected, the applicant/owner can file an appeal within 15 days from the decision date. Once again, it is uncertain as to how DIP will calculate the dates.

Our recommendation

Avoid applying for a Covid-19 grace period unless it is necessary. Seeing multiple uncertainties, including document criteria, deadline on top of examiner/registrar own discretion, it may not be beneficial for owner/applicant to use this. There are considerable risks involve, if the request should fail it may subsequently cause the related IP matter to lapse.

Overall, we recommend that applicant/owner/agent maintain the formal deadline and prepare ahead of time. Our firm has implemented a work-from-home protocol and we are ready to assist you. If you have further question or concern, please contact ipgroup@ilct.co.th.

By:

Chart Chotiphol

Counsel/Business Development

For the full article please download here Download

1 Jul

Thailand: Conditions on International Flights during COVID-19 Pandemic

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News & Articles COVID-19, thailand, immgration, travelbubble, immgrationlaw

To flatten Thailand’s COVID-19 curve, the Civil Aviation Authority of Thailand (“CAAT”) had imposed a ban on all international flight entering Thailand since April 3, 2020. Nevertheless, seeing the stabilization of the local cases and effective social distancing protocol for the past months, Thailand will be resuming international flight, effective from July 1, 2020.

According to CAAT’s Notification re: Conditions for International Flight Permit to Thailand, CAAT has stipulated several conditions for special flights and passenger flights inbound for Thailand.

1). Special flights

The following types of aircraft are eligible for CAAT’s permission for incoming, outgoing, flyover and/or landing in Thailand:

State or military aircraft
Emergency landing aircraft
Technical landing aircraft (no embarking of passengers)
Aircraft on a humanitarian, medical or relief mission
Aircraft for repatriation
Cargo aircraft

2). Passenger Flights

For passenger aircraft to be given with CAAT’s permission, passengers or persons on board must be one of the following categories:

Thai nationals
Person invited by the Thai government
Non-Thai nationals, who are spouse, parents or children of a Thai national
Non-Thai nationals holding a valid certificate of residence or permission for residence
Non-Thai nationals holding a valid working permit, including spouse and children of the same
Carriers of necessary goods (must depart immediately after the mission has been completed)
Aircraft crew members (must have a complete travel itinerary)
Foreign students, including parents or guardians of the same
Foreign nationals seeking medical assistance/treatment in Thailand (excluding COVID-19)
Diplomats, international organization representatives or foreign government representatives, including spouse, parents, or children of the same
Foreign nationals with a special arrangement permitted by the Thai authorities

Passenger flights under the above conditions must also adhere to all local regulations (i.e. Thai immigration law, communicable diseases law, air navigation law, and the Emergency Decree on Public Administration in Emergency Situation). Additionally, all passengers must comply with all COVID-19 related screening process (e.g. COVID-19 RT-PCR), as well as, 14-day state required quarantine. Please refer to our previous article on Thailand’s COVID-19 immigration rules, procedures and required documents (see: Immigration Rules)

We will provide further updates on further regulation, tourism related travel and travel bubble as the information becomes available in the near future. For any assistance, please contact us at law@ilct.co.th.

By:

Chart Chotiphol

Counsel/Business Development

Download PDF version here Download

1 Apr

Thailand Labour Corner: Impacts of Covid-19 on Employment

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News & Articles COVID-19, thailand, employment, workfromhome

Right and Obligation for Employers and Employees

Confronting Covid-19 pandemic, both employers and employees face many new work-related challenges. Especially with its flu-like symptoms, employers have a duty to implement workplace health, safety and preventative protocols. Likewise, employees are also obligated to act with social responsibility, comply with health guidelines and work rules. This is a two-way street to control and reduce the Covid-19 chain-of-infection.

Under the Communicable Diseases Act B.E. 2558 (2015) (“CDA”), Labour Protection Act B.E. 2541 (1998) (“LPA”) and Occupation Safety, Health and Environment Act B.E. 2554 (2011) (“OSHEA”), both employers and employees should be aware of the below.

What employers should know:
• Employers are required to provide a safe and hygienic working environment, and must carry all related expenses;
• Employers must report all suspected Covid-19 infections within 3 hours upon discovery to related authorities (call “1422”);
• Employers may refer to their employment contract or exercise its managerial rights to request employee to work-from-home;
• Employers should consider special work rules for susceptible employees (i.e. older adults and immunocompromised); and
• Employers are entitled to issue a warning letter of suspension/termination to employee whom was found to violate specific work rules in relation to Covid-19 prevention protocol. For instance, if the work rules restrict traveling to high-risk countries, any action found to be in violation can be a serious ground for suspension or termination.

What employees should know:
• Comply with the health guideline and respect social responsibility. For example, imposing a 14-day self-quarantine after a trip to high-risk country as per the list set by the Ministry of Public Health and World Health Organization for the good of the public;
• Stay home and/or request to work-from-home when sick, but acting in good-faith;
• Employees are entitled to 3 days of sick leave without having to provide a medical certificate;
• Employees are also allowed 30 days of paid sick leave per year; and
• Employees may request voluntarily unpaid leave (upon employer’s discretion).

During these trying times, all must comply with the health guideline to put an end to this pandemic as soon as possible. Regardless of roles, employers and employees have duties to society as a whole. Act in good faith, observe the rules and help one another when needed.

In view of this turmoil, the Thai government is preparing multiple relief policies for both employees and employers, such as: social security contributions by the employers, Vat refund and tax incentives. We will provide further updates once the policies are in effect.

By:

Chart Chotiphol

Counsel/Business Development

For the full article (PDF) please download here Download

30 Jun

Amendment to Thailand’s Civil & Commercial Code

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News & Articles thailand, civilandcommercialcode, businesslaw

As of June 9, 2020, the Thai Cabinet has introduced an Amendment to Thailand’s Civil & Commercial Code (“Amended CCC”). The Amended CCC was introduced to update both Civil & Commercial Code up to the current practice and standard. The Amended CCC has been approved by the Thai Cabinet and currently in the final stage of pending parliamentary approval.

Below are the key amendments to the Civil & Commercial Code (CCC):

Formation of a partnership limited or company limited may now be applied at any Company and Partnership Registration Office as announced by the Thai minister (Section 1016);
The Thai minister may also waive related fee and reduce the required documents to be submitted in relation to partnerships and limited companies (Section 1020/1);
Memorandum of Association (“MOA”) will become void if a limited company fails to be established within a three-year period;
MOA that had been registered prior to the enforcement of the Amended CCC and had exceeded the three-year period shall be granted a 180 days extension from the effective date of the Amended CCC, the said MOA will become void if it passes the extension period;
Companies which have company seals must affix their company seals on all share certificates (Section 112);
In support of the social distancing guideline (“New Normal”), the Board of Directors’ meeting may now be held without having to be present in person or in the same venue (unless restricted by company’s Articles of Association).
Following (6), New Normal meeting must comply with all related Ministerial Regulations (i.e. Security Standard for Electronic Meetings issued by Thailand Ministry of Digital Economy and Society) and once complied, directors attending the Board of Directors’ meeting via electronic means shall be deemed present at the meeting and have the rights to vote (read more on this: here);
Notice of shareholders’ meeting (i.e. Annual General Meeting and/or Extraordinary General Meeting) must be sent to all shareholders whose names are on the company’s share register book via registered mail with acknowledgement of receipt.
Companies with bearer shares must still make an announcement via local newspaper in addition to sending the notice of shareholders’ meeting to all shareholders (Section 1175).

Overall, this Amended CCC was designed to further promote the ease of doing businesses in Thailand. Companies are encouraged to stay-up-to date on the latest amendments and regulations. For further details and updates, please contact us at law@ilct.co.th.

By:

Chart Chotiphol

Counsel/Business Development

Read Thai Version

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30 Jun

สรุปสาระสำคัญของร่างพระราชบัญญัติแก้ไขเพิ่มเติมประมวลกฎหมายแพ่งและพาณิชย์

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News & Articles thailand, civilandcommercialcode, ccclaw

ล่าสุด เมื่อวันที่ 9 มิถุนายน 2563 ที่ประชุมคณะรัฐมนตรีได้มีมติเห็นชอบร่างพระราชบัญญัติแก้ไขเพิ่มเติมประมวลกฎหมายแพ่งและพาณิชย์ ภายใต้หลักการและเหตุผลที่ต้องการลดขั้นตอนของข้อกฎหมายในบางมาตราที่ไม่เหมาะสมกันกับสภาพการณ์ในปัจจุบัน เพื่อให้การดำเนินธุรกิจของทั้งหุ้นส่วนและบริษัท มีความคล่องตัวมากขึ้น และสอดคล้องต่อการนำเทคโนโลยีในปัจจุบันมาใช้ในการปฏิบัติงาน และดำเนินธุรกิจได้มากยิ่งขึ้น อีกทั้งยังเป็นการเสริมสร้างศักยภาพในการแข่งขันของประเทศ เป็นการสร้างภาพลักษณ์ที่ดีในการประกอบธุรกิจในประเทศไทยที่มีความสะดวกรวดเร็ว และง่ายขึ้น ซึ่งจะไปสอดคล้องกับตัวชี้วัดของธนาคารโลก (Word Bank) และเป็นผลดีต่อการประเมินความยากง่ายในการประกอบธุรกิจในประเทศไทย ทำให้มีการพัฒนา และยกระดับความสามารถในการแข่งขันขององค์กรธุรกิจให้ทัดเทียมนานาประเทศ

ลำดับ	สาระสำคัญของร่างพระราชบัญญัติ	หมายเหตุ
1.	กำหนดให้การยื่นขอจดทะเบียนห้างหุ้นส่วนและบริษัท สามารถยื่น ณ สำนักงานทะเบียนหุ้นส่วนบริษัท แห่งใดก็ได้ ตามที่รัฐมนตรีประกาศกำหนด	จะตรงกันกับมาตรา 1016 ที่ได้รับการแก้ไขเพิ่มเติมตามคำสั่งหัวหน้าคณะรักษาความสงบแห่งชาติที่ 21/2560 ลงวันที่ 4 เมษายน 2560 อยู่แล้ว
2.	กำหนดให้รัฐมนตรีมีอำนาจลด หรือยกเว้นค่าธรรมเนียมในการจดทะเบียน การขอตรวจเอกสาร การขอสำเนาเอกสารพร้อมคำรับรอง และค่าธรรมเนียมอื่นๆ ที่เกี่ยวข้องกับห้างหุ้นส่วนและบริษัท	จะตรงกันกับมาตรา 1020/1 ที่ได้รับการแก้ไขเพิ่มเติมตามคำสั่งหัวหน้าคณะรักษาความสงบแห่งชาติที่ 21/2560 ลงวันที่ 4 เมษายน 2560 อยู่แล้ว
3.	กำหนดให้หนังสือบริคณห์สนธิ ที่จดทะเบียนไว้สิ้นผลลง หากมิได้ดำเนินการจดทะเบียนจัดตั้งบริษัทภายในสามปี	ส่งผลดีต่อผู้ประกอบธุรกิจรายอื่นที่ประสงค์จะใช้ชื่อบริษัทที่ซ้ำกับชื่อบริษัท จดทะเบียนของหนังสือบริคณห์สนธิที่สิ้นผลนี้ ต่อไปนี้สามารถนำไปใช้ได้
4.	กำหนดให้มีการประทับตราบริษัทในใบหุ้นทุกใบ เฉพาะในกรณีที่บริษัทมีตราประทับ	เพื่อเพิ่มความชัดเจนของมาตรา 1128 เดิม ตามคำสั่งหัวหน้าคณะรักษาความสงบแห่งชาติที่ 21/2560 ที่ระบุเพียงว่า “ในใบหุ้นทุกๆ ใบ ให้กรรมการอย่างน้อยหนึ่งคนลงลายมือชื่อเป็นสำคัญ”
5.	กำหนดให้การประชุมคณะกรรมการสามารถดำเนินการได้ด้วยเทคโนโลยีอย่างหนึ่งอย่างใด ซึ่งทำให้กรรมการไม่จำเป็นต้องปรากฎตัวในที่ประชุมก็ได้ เว้นแต่ข้อบังคับของบริษัทจะกำหนดห้ามไว้ ทั้งนี้การจัดประชุมดังกล่าวต้องเป็นไปตามหลักเกณฑ์ วิธีการ และเงื่อนไขที่กำหนดไว้ในกฏกระทรวง และให้ถือว่ากรรมการ ซึ่งใช้การติดต่อสื่อสารนั้น ได้เข้าร่วมประชุมกรรมการ และให้นับเป็นองค์ประชุม และมีสิทธิออกเสียงในที่ประชุมด้วย	เพื่อสนับสนุนให้การประชุมคณะกรรมการสามารถดำเนินได้ในรูปแบบการประชุมผ่านสื่ออิเล็กทรอนิกส์ ตามกฎกระทรวงที่จะออกและมีผลใช้บังคับ ซึ่งคาดว่าน่าจะสอดคล้องกับมาตรฐานการรักษาความมั่นคงปลอดภัยของการประชุมผ่านสื่ออิเล็กทรอนิกส์ ที่ออกโดยกระทรวงดิจิทัลเพื่อเศรษฐกิจและสังคม พ.ศ. 2563 ลงวันที่ 12 พฤษภาคม 2563
6.	กำหนดให้การส่งคำบอกกล่าวเรียกประชุมใหญ่ผู้ถือหุ้น ให้ส่งทางไปรษณีย์ตอบรับไปยังผู้ถือหุ้นทุกคนที่มีชื่อในทะเบียนผู้ถือหุ้นของบริษัทเท่านั้น ถือว่าเป็นการส่งคำบอกกล่าวโดยชอบด้วยกฎหมาย เว้นแต่ในกรณีที่บริษัทมีหุ้นชนิดที่ออกให้แก่ผู้ถือ ให้ส่งด้วยวิธีการโฆษณาในหนังสือพิมพ์แห่งท้องที่เพิ่มเติมด้วย	เดิมมาตรา 1175 กำหนดให้ส่งทั้งทางไปรษณีย์ตอบรับ และลงประกาศโฆษณาในหนังสือพิมพ์
7.	กำหนดบทเฉพาะกาลรองรับกรณีที่มีการจดทะเบียนหนังสือบริคณห์สนธิก่อนวันที่พระราชบัญญัตินี้ใช้บังคับ และเมื่อนับระยะเวลาตั้งแต่วันที่มีการจดทะเบียนหนังสือบริคณห์สนธิ จนถึงวันที่พระราชบัญญัตินี้ใช้บังคับแล้วมีระยะเวลาเกิน 3 ปี แต่ปรากฏว่ายังมิได้จดทะเบียนจัดตั้งบริษัท ให้สามารถดำเนินการจดทะเบียนบริษัทได้ภายใน 180 วัน นับแต่วันที่พระราชบัญญัตินี้มีผลใช้บังคับ

ทั้งนี้ ร่างพระราชบัญญัติฉบับนี้จะถูกเสนอต่อรัฐสภา เพื่อออกเป็นกฎหมายต่อไป หากต้องการสอบถามข้อมูลเพิ่มเติม กรุณาติดต่อสำนักงานที่หมายเลข 02-679-6005

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26 Jun

Land and Building Tax Regulations & Extensions

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News & Articles thailand, landtax, propertytax, buildingtax, landandbuildingtax

Effective since March 2019, the Thai government had introduced the Land and Building Tax Act B.E. 2562 (2019) (“LBTA”). The LBTA obligates land and building owners to pay applicable tax. The tax collection process under the LBTA was originally scheduled to commence in January 2020. However, given the implementation difficulties such as: land appraisal and payment process, all applicable deadlines have been extended. Moreover, the government had also introduced tax reduction scheme for specific land types, as well as, COVID-19 related tax relief.

1). Extension of Land & Building Tax Collection

Due to the current implementation difficulties, all previous LBTA related deadlines were extended for another 4 – 5 months. For instance, deadline for mailing of the tax assessment form has been extended to June 2020 (originally February 2020) and deadline to pay the said tax has been extended to August 2020 (originally April 2020).

Overall, the extension of all related deadlines is designed to provide more breathing room to both the authorities and taxpayers alike.

2). Lands & Buildings Tax Collection Scheme

Under LBTA Section 37, collection of lands and buildings tax are separated into 4 main types, these are:

Land for agricultural purpose;
Land for residential purpose;
Land for other purpose (excluding A and B);
Untendered land.

Each type is subject to their individual tax rate. Land for agricultural purpose is subject to a tax rate of not exceeding 0.15% of the tax appraisal value (excluding aquaculture and textile activities). Whereas land for residential purpose is subject to a tax rate of not exceeding 0.3% of the tax appraisal value. With this being said, specific types of land, such as: those that are pending sale, under an ongoing development project or hotel may be considered as exceptions to the typical tax collection scheme.

Additionally, the Thai cabinet has introduced and approved COVID-19 land & building tax relief scheme, which took effect on June 10, 2020. This tax relief scheme is designed to provide additional tax relief during COVID-19 pandemic. Under the COVID-19 land & building tax relief scheme, taxpayers are eligible for a 90% reduction to the usual appraised value for the 2020 tax payment covering all land types.

3). Lands & Buildings Tax Exemptions

The LBTA also provided additional tax exemption to the taxpayers for the first home and/or agricultural land. A first home including land owned by an individual with an appraised value under THB 50,000,000 is eligible for tax exemption. Primary residential building excluding land (e.g. apartment or condominium) with an appraised value under THB 10,000,000 is also eligible for tax exemption.

Moreover, agricultural land owned by an individual within a designated agricultural area with an appraised value under THB 50,000,000 is also exempted. However, the same with an appraised value over THB 50,000,000 will only be eligible for 3 years tax exemption (2020 – 2022).

4). Lands & Buildings Tax Reductions

Lastly, the Royal Decree Re: Reductions on Land and Building Tax B.E. 2563 (2020) was introduced to further clarify and prescribe tax reduction rates and requirements for each land type.

Taxpayers should be attentive to the applicable reduction rates and their respective requirements to ensure maximum tax reduction. For example, a land owned via inheritance and used for residential purpose is eligible for 50% tax reduction, but it must be owned by an individual along with a valid inheritance transfer before March 13, 2019. Furthermore, land under development for home plus land, apartment complex or industrial estate are typically eligible for 90% tax reduction for 3 years from the initialization of the development project.

In the same way, schools, sporting venues, entertainment venues, zoos and airfields are typically eligible for 90% tax reduction, but without a fixed period. Nonetheless, these land types must comply with their respective laws and regulations to be eligible for such reduction.

Seeing multiple regulations, exemption and reduction scheme, taxpayers are encouraged to stay up-to-date and be attentive to fully utilize the benefits and remain in compliance with applicable laws. For more information on the latest land and tax regulations, please contact law@ilct.co.th.

By:

Chart Chotiphol

Counsel/Business Development

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21 Dec

Delisting Particular Parts and Extract of Cannabis and Hemp from Controlled Narcotics

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News & Articles thailand, Legality of cannabis, Marijuana Legalization and Regulation, narcotics act, marijuanas legalization

Man has known Marijuana (aka Cannabis, Weed, Pot or Mary Jane etc.) since time immemorial. The use of marijuana can be traced back to as early as 500 BC. Although, marijuana is commonly known for its psychedelic property or “the high effect”, it was discovered that ancient civilizations used marijuana as a form of herbal medicine and remedy. Despite this, marijuana was first criminalized around the 19^th century in an effort to ramp up the war on drugs.

With the rise of modern medicine backed by multiple medical researches, it was discovered that marijuana can be used to treat various medical conditions such as: Alzheimer, cancer, epilepsy, mental health issues (schizophrenia and PTSD) and many more. This paradigm shift has slowly altered the public’s opinion and perception on the use of marijuana, where it is no longer seen as a mere narcotic. Naturally, the movement to decriminalized marijuana has been spreading around the globe with some countries that have already decriminalized marijuana for both medical and recreational uses.

In Thailand, the Thai Narcotic Act B.E. 2522 (“Narcotic Act”) listed marijuana and hemp as Class 5 Narcotics. Activities relating to (1) growing (2) importing/exporting (3) selling (4) owning (5) owning for the purpose of selling or (6) consuming/smoking of these substances are not allowed and will be met with heavy fines and imprisonment.

The recent Thailand Ministry of Public Health’s Announcement Relating to Listing of Narcotics in Class 5 which was published in the Royal Government Gazette on December 14, 2020 (the “Announcement”) has now removed particular parts and extracts of marijuana (cannabis) and hemp for medical purposes from the list of controlled narcotics.

Under the Announcement, parts and extracts of marijuana and hemp shall not be considered as Class 5 Narcotics, provided that they are fully authorized to be grown or produced in Thailand by the Ministry of Public Health. The delisted parts and extracts of marijuana and hemp are:

Parts and extracts of marijuana (Cannabis), including:
- Bark, stem, fibre, branch and root;
- Leaf (without inflorescences & flowers);
- Cannabidiol extract (CBD) with tetrahydrocannabinol (THC) amount not exceeding 0.2% of the total weight;
- Residue or sludge deriving from cannabis extraction process with tetrahydrocannabinol (THC) amount not exceeding 0.2% of the total weight.
Parts and extract of Hemp (Cannabis sativa), including:
- Bark, stem, fibre, branch and root;
- Leaf (without inflorescences & flowers);
- Cannabidiol extract (CBD) with tetrahydrocannabinol (THC) amount not exceeding 0.2% of the total weight;
- Hemp seed, hemp seed oil or hemp seed extract;
- Residue or sludge deriving from hemp extraction process with tetrahydrocannabinol (THC) amount not exceeding 0.2% of the total weight.
The Announcement came into force on December 15, 2020.

In short, the Announcement released specific parts and extracts of marijuana and hemp from the controlled narcotics list if they are used for medical, academic research and production of health products purposes only. The use of these substances for purposes other than those mentioned is still prohibited.

While there are many challenges ahead, the initial unlocking parts/extracts of marijuana and hemp may be a good step toward future medical advancement. Jurisdictions that have already decriminalized marijuana have shown rather promising results and more are expected to be seen. Science and law must progress hand-in-hand on this sensitive subject. By establishing a proper framework, it will be possible to gain the full benefit from these controversial plants.

For more information regarding laws and regulations on the limited use of marijuana and hemp in Thailand, please contact law@ilct.co.th.

By:

Chart Chotiphol

Counsel/Business Development

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16 Dec

ILCT IP Team shared insight on IP assets management when a business is on the verge of closing down

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News & Articles thailand, thailandiplaw, thaiiplaw, thaiintellectualpropertylaw, ipmanagement

Ratinuch Kawnachaimongkol, our Intellectual Property Practice partner shared her insight with AsiaIP on how to manage a Company’s IP assets once a threat of closing looms.

Key takeaways are as follow:

In Thailand, there is no specific law that addresses this situation. However, some IP laws have provisions regarding the status of an IP right after the shutdown. For example, the country’s trademark law states that if the owner of a registered trademark ceases to have its office or address or its company is dissolved in Thailand, its trademark registration may be cancelled by the Trademark Registrar pursuant to Section 59 of the Thai Trademark Act.

Thus, before the closure of a company, it is advisable to complete the assignment of the IP to a particular person while the company directors are still authorized to do so in the name of the company.

Can the company owners/founders license or transfer ownership of the IP to themselves?

As the company and directors/shareholders are viewed as different legal entities, the company as the IP owner may license or assign the IP to its directors/shareholders as long as the applicable law is complied with.

Should IP be sold before or after the shutdown?

Selling and assignment of IP prior to the shutdown also helps to avoid complications arising from the closure of a company.

Can the developer of a technology who was an employee of the company, continue to work on that technology on his own after the company folds up (say, he forms his own company and continues to work on the technology for his own firm)?

In the absence of an agreement containing such clauses, the patented invention is owned by the company or employer.

Under this circumstance, to enable the original developer of the technology or employee in this case to use such invention on his own after the shutdown without infringing any IP rights of the employer, the said patented invention must be assigned from the company to its employee before the shutdown. The developer can also sell his patented technology to another person.

Does the same hold true for trade secrets? For example, can a member of a restaurant’s kitchen staff who developed a secret recipe for the restaurant, use the same recipe when the business closes and he decides to open his own food venture?

The owner of a trade secret is a person who discovers, invents, complies or creates trade information that is eligible for protection as a trade secret under Section 3 of the Thai Trade Secret Act. In the absence of the agreement providing otherwise, the developer of a trade secret could, therefore, be regarded as the owner of a trade secret who can continue using the same after the closure of his previous employer’s shop.

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12 Nov

Trademark 101: The Basics

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News & Articles thailand, trademarklaw, thailandtrademarklaw, branddevelopment

What is a trademark?

A trademark is a type of Intellectual Property (IP) asset, it is simply a word, symbol, design or any combinations that represent your company’s name, products and/or services. There is a wide range of trademarks. As the owner, you may design your trademark to represent your products or services. Examples of commonly seen trademarks are shown below.

Should I register my trademark?

Short answer, YES! It is a good idea to register your trademark, by registering you will be able to claim legal ownership and exercise your exclusive rights over your trademark. Notwithstanding, there are also numerous advantages once you registered your trademark, few examples are discussed below.

I). Brand Protection & Development

Let’s face it, it is not easy building your own brand, let alone protecting it. Your brand is essentially the core asset of your business. Trademark registration will help to prevent others from unlawfully copying/using your trademark. Moreover, registration will also provide safe space for brand expansion, as well as, bolstering consumers/investors’ confidence over your brand.

II). Intangible Assets

Did you know that a registered mark can be sold or licensed? Generally, reputable trademarks are very attractive to potential buyers. By registering your trademark, it tells the buyers that your trademark is secured and not subject to copycats.

In addition to selling your mark, you may choose to “license”. Simply put, you may grant “temporary rights/temporary usage” to others for using your trademark. Under this method, you will be able to gain income via licensing, this is called “royalty fee”. There are few options to grow your business via IP assets, and licensing is one of such.

III). Global Recognition

One important fact, you need to register your trademark in specific country that you intend to sell your products or services. For example, if you would like to operate your business in the US, Thailand and China, you must register your trademark in each of these countries separately to be granted exclusive rights.

In essence, trademark gains strength as it become widespread. The more consumer recognition the stronger your trademark will become.

Trademark Related Symbols

The above two symbols represent the status of a trademark and its level of protection. The symbol “R or ®” shows that your mark is fully registered under the law. Whereas, the symbol “TM or ™” shows that you are using this mark but it is not yet registered, most used “TM” as a way of notifying others that this is their mark. With this being said, misused of these symbols can result in penalties. Thus, be mindful of your usage.

To sum up

As discussed here, there are many advantages to owning a fully registered trademark. While some are still on the fence about investing in their trademark, DON’T BE! The investment you will be making is small compared to risks of not registering at all. Although, it is possible to directly register your trademark with respective Intellectual Property Offices (e.g. DIP, USPTO or EUIPO) by yourself, but it is more advisable to seek an assistance from experts to ensure a smooth process.

In this globalized world, Intellectual Property assets, such as: trademarks and patents are critical to your business. If used properly, these assets will be invaluable. Trademark acts as your brand, represents your business reputation and provides real legal tools against misuse.

Are you interested or would like to know more about trademarks? Contact us to receive consultations on your trademark or other intellectual property rights, our experts are ready to assist you.

By:

Chart Chotiphol

Counsel/Business Development

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