Putting a gold leaf on the back of the Buddha image

THAILAND IN CLOSE-UP

Known originally as Siam, the country was renamed Thailand (Land of the Free) in 1939. Thailand’s population is currently 70 million, its capital city is Bangkok, its currency is the baht (THB), and the official language is Thai. Thailand is Southeast Asia’s second largest economy after Indonesia. Thailand is home to Buddhist temples, exotic wildlife and spectacular islands. It is also known for its fascinating history, unique culture and delectable local food. The tourism industry plays an important role in the Thai economy and contributes an estimated 18.4 percent to the national GDP. Thailand is the only Southeast Asian country never to have been colonized by a European power. It is known for its beautiful nature, delicious mangoes and strict rules about conversations on its monarchy. The culture in Thailand is a mix of strong Indian influences, Chinese traditions, and elements that are uniquely Thai. With its diverse geography, friendly people, and stunning scenery, the “Land of a Thousand Smiles” is a must-see destination in South East Asia. There are at least 13 different smiles that a Thai person may use, each one having a very specific meaning.

Thailand is a dream tourist destination for many people from different parts of the world, and with good reason. The Land of Smiles promises entertaining activities, delicious cuisine, welcoming locals, and rich culture and history for every visitor at any time of the year. One of the most charming festivals celebrated in Thailand is Khao Phansa, or Buddhist Lent Day, which marks the start of the rainy season and the period when monks traditionally retreat to their temples for a three-month period.

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THAILAND’S LEGAL FRAMEWORK

The Thai legal system is a statutory law system, which means it is mostly based on written law passed by the legislature. Thailand’s legal system blends principles of western and traditional Thai laws. The Thai government is a constitutional monarchy and has a prime minister as head of government with executive, legislative and judiciary branches. Primary sources of law include the Constitution, which is the supreme law, legislation such as Codes and Acts, decrees and custom. The Kingdom of Thailand has been a constitutional monarchy since 1932. There have been eighteen constitutions, with the current Constitution having been enacted on August 24, 2007. Under the constitution, the King is the head of state and exercises his sovereign powers through the National Assembly, the Council of Ministers and the Courts. An article summarizing the basic structure of the Thailand government is available online. Legislative power is exercised by the National Assembly, which consists of the House of Representatives and the Senate. The House of Representatives has 480 members who serve four year terms. 400 members are elected directly from 157 multi-representative constituencies. The remaining 80 members are elected from party lists, and are chosen on the basis of the proportion of votes cast by constituents in eight groupings of provinces. The Senate has 150 members who serve six year terms. Each of 76 provinces elects one member. The remaining 74 members are selected by the Senators Selective Committee from persons nominated by organizations in the academic, public, private and other sectors.

Intellectual Property in Thailand

The intellectual property environment in Thailand has continued to improve in recent years. In December 2017, the United States Trade Representative (USTR) moved Thailand from the Special 301 Priority Watch List (PWL) to the Watch List (WL), and Thailand remains on the WL in 2022. The Department of Intellectual Property (DIP) oversees and administers Thailand’s IP system. U.S. IP owners may register or apply for their IPR in Thailand for trademarks, patents, designs, layout-design of integrated circuits, and geographical indications. An address for service in Thailand and a local agent or attorney is generally required when filing IP applications at DIP. Additionally, DIP has implemented a series of e-services for its IP registration processes and introduced fast-track programs for patent and trademark registrations under certain conditions. As a member of the World Trade Organization (WTO) and World Intellectual Property Organization (WIPO), Thailand generally complies with international intellectual property standards established by the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Thailand is also a party to the Patent Cooperation Treaty (PCT) and the Madrid Agreement Concerning the International Registration of Marks (known as the Madrid System). Patent and trademark applicants may use these international systems for filing international patent and trademark applications for requesting protection in Thailand.

Patent in Thailand

A patent is a legal document issued to grant protection for an invention or a design, based on section 3 of the Patent Act 1979. The three patent types available in Thailand are patent for invention, petty patent, and design patent (aka industrial design). Patents for invention can be filed in Thailand through two systems:
▪ a national application (first filing in Thailand or within 12 months of a priority application filed in another country); or.
▪ an application under the Patent Cooperation Treaty (“PCT”) system which makes it possible to seek patent protection.
The average time required to obtain a patent in Thailand, from application to grant, is seven-and-a-half years. For pharmaceutical patent applications, the process from requesting substantive examination to granting can take anywhere from 4 to 13 years. Invention patents An invention patent must fulfil the patentability requirements under Section 5 of the Patent Act. To be patentable, an invention must be new, involve an inventive step, and be capable of industrial application. Invention patent applications are filed with the Department of Intellectual Property. Once granted, proper fees must be paid to ensure the patent’s validity for the 20-year period. Where an invention does not involve an inventive step, the invention may be eligible for a petty patent if it is new and capable of industrial application. A petty patent (also known as a utility model in other countries) can be granted for a new invention that is capable of industrial application but lacks a high level of inventive novelty.

Trademark in Thailand

In Thailand, the basic trademark law is the Trademark Act of B.E. 2534 (1991), as amended in B.E. 2543 (2000), which provides for the registration of trademarks. Registration of a trademark in Thailand would enable a trademark owner to apply the full force of the law to enforce his rights in this jurisdiction, rather than if he were relying only on the registration of the trademark in another jurisdiction. Trademarks are registered with the Department of Intellectual Property. However, the applicant must have a fixed address in Thailand – non-residents can only register by appointing a Thai resident and granting them the power of attorney. In order to be able to register the trademark, an official form has to be completed in Thai and filed with the Department of Intellectual Property. A sample of the product should be attached, and the address of the applicant in Thailand should be mentioned. If the applicant is not domiciled in Thailand, the business office or premises will be considered as the domicile. A duly filed application will be published in the Trademark Gazette for 90 days. In case no one files an objection within that period of time, the trademark will be registered and the payment of the registration fee will be due. In Thailand, it is mandatory to register a trademark in order to obtain protection and proprietary rights for it, as Thailand is a “first-to-file” jurisdiction. However, in exceptional cases, well-known trademarks can be protected even if they have not been filed yet. Trademarks do not need to be in use in Thailand in order to be filed or registered. However, extensive prior use of the mark may prove acquired distinctiveness, and as such help overcome objections raised on grounds of lack of distinctiveness.

Industrial design in Thailand

Under Thai regulation, a multiple design application is not allowed. Each embodiment of the design is deemed to be a separate design application. A design may be eligible for design patent if it is new and industrially applicable. Design patents are granted based on the ornamental aspects or aesthetics of an article, including features that pertain to the shape, configuration or pattern. As such, design patents may be granted for new qualifying three-dimensional designs or designs with a two-dimensional element. In Thailand, design patents are popularly sought by both Thai and foreign patentees. The Department of Intellectual Property grants design patents 10 years of protection from the date of filing. There is no provision for novelty grace period in the Thai design regulation. The design which has been disclosed to the public before filing the application is not patentable in Thailand. The industrial design registration in Thailand is valid for ten years from the date of filing. The first maintenance fees must be paid at the beginning of the 5th year of the patent validity term. If the design patent is granted at the beginning of the 5th year, the maintenance fees must be paid within 60 days from the patent grant.

Copyright in Thailand

Copyright law in Thailand governs the legally enforceable rights of creative and artistic works under the Copyright Act BE 2537 (1994). On 24 February 2022, Thailand amended its Copyright Act B.E. 2537 (1994)—previously amended in 2015 and 2019—to comply with the World Intellectual Property Organization Copyright Treaty (WCT) and update practices in combating online infringement. The amended law became effective on 23 August 2022. The copyright protection in Thailand is valid for the entire lifetime of the author and continues for a period of 50 years thereafter. The same protection period is granted to juristic persons who are the owner of the copyright. hai laws recognize and automatically protect copyrighted works created or recorded in foreign countries without any further formality, provided that the creators of such works are nationals or residents or first published such works in a member country of the Berne Convention for the Protection of Literary and Artistic Works (the Berne Convention) or the Agreement on Trade-Related Aspects of Intellectual Property Rights (the TRIPS Agreement). There is no system of registration of copyrights in Thailand. Copyrighted works however can be recorded at the Copyright Office under the Department of Intellectual Property, Thai Ministry of Commerce.

IP enforcement in Thailand

Thailand has followed through on its international agreements by passing a series of laws that protect intellectual property rights in Thailand based on International Model Laws. Currently Thailand has laws that protect trademarks, patents, copyrights, trade secrets, Integrated circuit design, and optical disk production. A specialized court was created called the Central Intellectual Property and International Trade Court (CIOITC) to adjudicate civil and criminal IP cases in Thailand. CIPITC is a specialized court that adjudicates IP disputes, including infringement and invalidity issues in Thailand. An appeal against the decision of CIPIT Court may be submitted to the Court of Appeals for Specialized Cases, the decisions of which may be appealed to the Supreme Court, subject to the Supreme Court’s discretion. IP enforcement can be taken in Thailand by means of customs seizures, cease-and-desist letters, negotiations, mediations though the Department of Intellectual Property, and criminal and civil litigation.

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Eleven Facts About Thailand You Might Not Know

1. Thailand is the only Southeast Asian country that was never colonized by an European country. In fact, in the Thai language, the name of the country is Prathet Thai which means “land of the free.” Very fitting!

2. Males were all Buddhist monks for a while. There was a time when all young men in Thailand (including royalty) were required to become Buddhist monks–even if only for a short period of time–before they turned 20. This practice is not observed as it used to be these days, however.

3. You’re lucky that you know Bangkok as “Bangkok.” Its real name is one of the longest names of a place in the world, made up of Pali and Sanskrit root words: Krungthepmahanakhon Amonrattanakosin Mahintharayutthaya Mahadilokphop Noppharatratchathaniburirom Udomratchaniwetmahasathan Amonphimanawatansathit Sakkathattiyawitsanukamprasit. What does that name mean? It means “City of Angels, Great City of Immortals, Magnificent City of the Nine Gems, Seat of the King, City of Royal Palaces, Home of Gods Incarnate, Erected by Visvakarman at Indra’s Behest.”

4. Thailand loves its King, and shows great respect for the monarchy. The well-known Hollywood movie “The King and I” was never shown in Thai theaters because it was considered to be derogatory to the King. How serious are they about their King? Thailand has the lese majeste rule, meaning that if you commit disrespectful acts toward the King, you could be imprisoned for treason.

5. There are about 35,000 temples in Thailand. Thailand is truly a land of temples. Visiting them requires modest clothing, meaning no shorts or sleeveless shirts.

6. The national flower of Thailand is the orchid. If you love exotic flowers, you’ll be pleased to know that 1,500 orchid species can be found growing wild in Thai forest. There’s a reason why it is one of the world’s largest orchid exporters.

7. People associate elephants with Thailand. There are more than 5,000 found there (though more than half are domesticated). Over a hundred years ago, though, there used to be about 100,000 with about one fifth of them wild.

8. Thailand used to be known as Siam, and it is the country where Siamese cats originated from. Though there used to be 23 types of Siamese cats originally, there are now only six. Giving a pair of Siamese cats to a bride on her wedding day is considered good luck.

9. That street you’re driving on? In the past, it might have actually been water. Bangkok used to be referred to as the “Venice of the East” due to the number of buildings that were built on stilts above the river. Gradually, most of the canals were filled in and became the streets you see today.

10. Thailand is made up of approximately 1,430 islands. Many of the islands have become famous for being featured in Hollywood films. A popular habit of return visitors is to “try out” new islands to find their favorite.

11. Have you ever been to a festival for monkeys? The annual Monkey Buffet is held in front of the Pra Prang Sam Yot temple Lopburi province. The local residents see it as a way of thanking the monkeys for bringing thousands of tourists to the village to see these monkeys that live there. It’s no small buffet: two tons of meat, fruit, ice cream, and other treats make up this feast.

Bud & Prairie helps your business navigate Thailand’s laws and regulations. Our solutions manage and process your issues, as well as enhance your potentialities. Partnering with Bud & Prairie means a quick, cost-effective, and compliant way to grow at the Thailand market.

Thailand employment and human resources

The employer-employee relationship in Thailand is primarily regulated by the Labor Protection Act of Thailand (LPA). Thai labor laws serve as the best safeguard of the rights regarding employment in Thailand. It sets the rights and obligations of employers towards their employees and vice versa. Thai labor law is considered to be more protective of employees’ rights. When managing a company in Thailand, you are required to follow the LPA to ensure strict compliance with the law. Any violation of the labor code will result in lawsuits, penalties, or heavy fines for the party at fault. The purpose of the labor law is to protect the rights and interests of the labor force working for a company or industry.

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📝 Contract Formation and Enforcement in Thailand

Agreements such as labor and employment agreements, sale and purchase agreements, real estate agreements, loan agreements, leases, etc., are covered under Thai Law (Civil and Commercial Code), giving the damaged party the right to file a civil lawsuit against the breaching party. For the formation of a contract the process of proposal or offer by one party and the acceptance thereof by the other is necessary. This generally involves the process of negotiation where the parties apply their minds make offer and acceptance and create a contract. Thai law does say that a contract can be oral or in writing. But ideally it needs to be in writing. Basically, there are two levels of breach under the Thai labor protection law, one being grave misconduct and the other incompetence or failure to perform duties.

📅 Thailand public holidays

Date Description
1 Jan New Year’s Day
6 Mar Makha Bucha Day
6 Apr Chakri Day
13-15 Apr Songkran Thai New Year Water Festival
1 May Labour Day
18 May Ascension Day of Jesus Christ
1 Jun Pancasila Day
4 May Coronation Day
3 Jun Visakha Bucha Day
3 Jun Birthday of HM Queen Suthida
28 Jul Birthday of HM King Maha Vajiralongkorn (Rama X)
1 Aug Asahna Bucha Day
2 Aug Khao Phansa
12 Aug CBirthday of HM Queen Sirikit The Queen Mother (also celebrated as Mother’s Day)
13 Oct HM King Bhumibol Adulyadej Memorial Day (also celebrated as Father’s Day)
23 Oct Chulalongkorn Day (Rama V Day)
5 Dec King Bhumibol Birthday Commemoration Day (also celebrated as Father’s Day and National Day)
10 Dec Constitution Day
31 Dec New Year’s Eve

🏦 Construction and Projects in Thailand

Here are the five largest construction projects initiated in Thailand to date.

1. Pattaya High-Tech Medical City Development – $250m

The project involves the construction of a medical city in Pattaya. The project aims to provide healthcare and better treatment facilities in the region.

2. Lumpini Ville Charan-Faichai Condominium Tower – $96m

The project involves the construction of a three high-rise condominium towers comprising 1,482 units at Charansanitwong Road in Bangkok. The purpose of the project is to provide better residential facilities in the region.

3. Lam Jiang Reservoir – $75m

The project involves the construction of a reservoir in the Sub-Yai District, Thep Sathit District, Chaiyaphum Province. The project aims to solve the flood and water shortage problems in the region.

4. Lumpini Condotown Ekachai 48 Condominium Development – $36m

The project involves the construction of eight eight-story Condominium towers in Bangkok. The main aim of the project to provide better residential facilities in the region.

5. Medical Complex Ramintra – $26m

The project involves the construction of a 17-story, 108,149m2 hospital building on 5.63ha of land in Bangkok. The project aims to provide better healthcare facilities in the region.

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    Why choose Bud & Prairie?

    Bud & Prairie offers a full complement of services in all areas of IP law and other legal practices, including without limitation patents; trademarks; copyrights; industrial designs; IP litigation; anti-counterfeiting and enforcement; and licensing, due diligence, and contract review. Our strong technique fields include bio-chemistry, biotechnology, pharmaceutical, superconductor devices and systems, civil engineering, electrical engineering, mechanical engineering, electronics, computer software, telecommunications, information technology, communications, media, construction.

    Bud & Prairie boasts a team of highly-qualified lawyers, licensed patent and trademark agents, engineers, paralegals, technical staff and legal professionals whose knowledge, experience, and acumen are second to none. Most of our attorneys and consultants own advanced degrees from both domestic and foreign institutions. We have the depth of experience of our partners with a perfect combination of knowledge, foresight and creativity, making us possible to analyse and solve issues faced by clients from various industries and providing them with all-round or holistic solutions that are not only legally sound, but also commercially sensitive.

    Contact us today to see how we can support your growth.

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