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INSIGHTS

Insights

We provide you with all of the latest legal developments in Southeast Asia, ensuring that you have the up-to-date knowledge you need to navigate the ever-changing legal landscape affecting your business. You can browse our entire library of publications below, and email [email protected] to sign up for updates that are relevant to your interests, delivered straight to your mailbox, as they emerge.

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July 26, 2023
Thailand’s Electronic Transactions Development Agency (ETDA) held a briefing session on July 20, 2023, laying out the changes and new requirements in draft sublaws under the Royal Decree on Digital Platform Services. These sublaws are expected to be announced in August 2023. The key changes and new requirements are listed below. The ETDA has drafted guidelines on the methods for identifying active users to give digital platform service operators a better understanding of the calculation methods. The definition of “users” for calculating annual monthly active users (AMAUs) has been reduced in scope to cover only users in Thailand. E-marketplace digital platform services that will suspend or terminate operations for specific users must inform the affected users and provide a period for them to challenge the suspension or termination. Digital platform service operators cannot use the requirements to identify their active users as a legal basis for processing users’ personal data, especially for profiling and tracking activities. The sublaws on announcement of terms and conditions (T&Cs) and changes to T&Cs, once issued, will take effect on January 3, 2024, while the other sublaws will take effect immediately (i.e., August 21, 2023). This shows that the ETDA has acknowledged the private sector’s feedback that the requirements on T&Cs will take more time for operators to comply with. The requirements for changing T&Cs have been adjusted. Under the current draft, the required advance notification period can be exempted if a change in the T&Cs is for the purpose of, for example, rolling out new products or services and improving the platform. Required submissions under the Royal Decree for Digital Platform Services and its sublaws will be made through the ETDA’s online portal. There will likely be no extensions granted for compliance with the Royal Decree for Digital Platform Services and its sublaws (other than those that relate to T&Cs as mentioned
July 25, 2023
Thailand’s Energy Regulatory Commission (ERC) is in the process of reviewing a draft regulation that updates the nationality qualifications for the ultimate shareholders and directors of applicants for an energy business license. The draft ERC Regulation Re: Qualifications, Documents and Application for Electricity Business—which is intended to replace the ERC Regulation Re: Application and Permission for Electricity Business B.E. 2551 and its amendments—is likely to be adopted soon and will affect licensed companies that are foreign majority owned when they apply for or renew their energy business licenses. The draft regulation requires partnerships, limited companies, and public limited companies to have the following qualifications unless there is an international agreement granting national treatment for a specific commitment (mode 3 or mode 4) or exemption by other laws: Juristic persons must be established under Thai law or registered in Thailand with the objective of carrying out electricity business; For private limited companies, foreign ultimate shareholders must not hold more than 49% of the total shares, and the number of the foreign shareholders must not exceed half of all shareholders; At least half of all directors must have Thai nationality; and Any authorized directors must have Thai nationality. When the draft regulation is adopted, it will not take retroactive effect on previously granted energy business licenses, which will continue to be valid until they expire if there is no material change to the license as defined by the draft regulation. Once the license is up for renewal (energy business licenses are normally issued for a specific period of time), it will be subject to the draft regulation. All license applications submitted prior to the effective date of the draft regulation and under consideration will be deemed applications for a license under the draft regulation. As noted above, the new qualification requirements will affect licensed companies owned or controlled by
July 19, 2023
Patent prosecution can be a lengthy process, especially in jurisdictions where patent office backlogs impede the timely examination and grant of patents. Acknowledging the imperative for expeditious patent prosecution, numerous patent holders in Southeast Asian (SEA) nations have expressed their eagerness to expedite the process. Consequently, governments in Cambodia, Indonesia, Laos, Thailand, and Vietnam have instituted diverse programs to facilitate swifter patent examination and grant. These programs are implemented either within their own intellectual property systems or through collaboration with other intellectual property offices. Notably, many accelerated examination programs are also available for inventions pertaining to green technologies or matters of public interest. In this article, we will explore a selection of these options, shedding light on the programs that facilitate faster patent examination and grant. While the following sections highlight specific initiatives, it is important to note that there may be other programs and opportunities beyond those mentioned here.   ASEAN Patent Examination Cooperation (ASPEC) Program One of the most notable programs in the region, the ASPEC program offers a mechanism for patent applicants to accelerate the examination of their patent applications in a participating IP office of an ASEAN member state (the second IP office) by leveraging the search and examination reports issued by the participating IP office of another ASEAN member state (the first IP office) on the corresponding application. Patent applications filed in any of the participating ASEAN member states, including Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, are eligible to benefit from the ASPEC program. An ASPEC request can be filed at any time before the final decision of grant or refusal; however, to maximize the effectiveness of the program, it is advisable to file the ASPEC request concurrently with the substantive examination request—by doing so, the substantive examination process can be initiated
July 18, 2023
On July 14, 2023, Myanmar’s Ministry of Planning and Finance issued Notification No. 50/2023, which sets out the rules, requirements, and procedures for registered trademark owners to protect their intellectual property rights through customs recordation in accordance with the relevant section of the Trademark Law 2019. The notification is accompanied by eight forms to be used in trademark-related customs matters (three for use by applicants and five for use by the Customs Department). Customs Recordation Owners of trademarks registered under the Trademark Law 2019 can apply (directly or via a legal representative) for customs recordation to protect against cross-border trade in counterfeit goods bearing their registered marks. Applications using the specified form should attach the required documentary evidence, including any separately specified by the Customs Department. If the application for recordation is accepted, the Customs Department will provide the applicant with a registration number within 15 days of receiving the application. Recordations are valid for two years from the acceptance date of the application and can be renewed every two years, 30 days before the expiration date. According to the notification, owners of marks recorded by the Customs Department must notify the department within three working days upon amendment or withdrawal of any information related to the mark at the Intellectual Property Department (IPD), and submit any necessary documentation. Suspension Order Regardless of whether a customs recordation has been filed, owners of trademarks registered under the Trademark Law 2019 can request a suspension order to prevent the release of goods into free circulation by laying out sufficient grounds for believing that counterfeit goods are being or will be imported into the country. Applications can be in English or Myanmar language, and a translation may be required upon the Customs Department’s request. Applications can be submitted in person, by post, or electronically. The Customs Department will notify
July 17, 2023
Cambodia’s new Law on Rules of Origin, which was published on July 5, 2023, is an important legal development that will help the country become a more important trading, manufacturing, and processing hub in the ASEAN region. This legal development accords with the government’s aims to increase consumer protection and clarity on product origin, encourage cross-border trade, position Cambodia as a source for quality manufacturing and processing, and push the “Made in Cambodia” quality label. These new, much clearer rules of origin also bring Cambodia’s legal framework in line with trading obligations set by ASEAN and the WTO. Furthermore, the new rules help clarify the implementation of several multilateral and bilateral trade agreements that Cambodia has concluded in recent years, such as free trade agreements with China and South Korea and the Regional Comprehensive Economic Partnership. Rules of Origin and Cambodia’s Role In international trade, products often make multiple trips before they end up with the consumer—the raw materials may be sourced in one country and processed in another, and then the product may be finished in a third country before the finished product is exported to a different country altogether. Rules of origin determine which country in the production chain qualifies as the country of origin. This is important because the country of origin may be subject to a preferential trading scheme, or there may be legal requirements to declare the correct origin in the country of sale, for example, based on labeling and consumer protection rules. Prior to the new Law on Rules of Origin, ad hoc rules of origin applied in Cambodia, often depending on bilateral agreements, multilateral agreements, or international preferential trading schemes. For example, the EU, US, and Japan have individually adopted preferential trading schemes with selected countries through Generalized Scheme of Preferences (GSP) programs. These GSP programs often set their
July 14, 2023
On July 13, 2023, the Central Bank of Myanmar (CBM) lowered the percentage of export income in foreign currency that must be converted into Myanmar kyat (MMK) within one day of receipt. The changes are contained in CBM Notification No. 15/2023, which took effect immediately. The notification specifies that only 50 percent of export income in foreign currency must be converted into MMK at official CBM rates within one day, in accordance with Myanmar’s requirement to convert foreign currency transfers and balances. The remaining 50 percent of the export earnings must be converted into MMK if the exporter does not use it within 30 days. The 50 percent requirement is a relaxation from the previous rules in CBM Notification No. 36/2022, under which 65 percent of income received from exportation needed to be converted into MMK within one day. Therefore, the new requirement grants a certain amount of flexibility to exporters in Myanmar regarding the currency conversion requirement. For more details on these foreign exchange developments, or on any aspect of financial regulations in Myanmar, please contact Tilleke & Gibbins at [email protected].
July 14, 2023
The Bank of Thailand (BOT) has issued new notifications amending regulations for payment businesses that fall under the Payment Systems Act B.E. 2560 (2017) to promote transparency and good governance in the payment industry. Notification No. SorKorChor 2/2566 (“Notification 2”) increases the required qualifications for applicants seeking a license to provide payment services designated as being under the BOT’s supervision, and Notification No. SorKorChor 4/2566 (“Notification 4”) stipulates additional duties and exemptions for certain types of business operators. The notifications were published in the Government Gazette on July 7, 2023, and came into effect the following day. Additional Qualifications Notification 2 expands the list of prohibited characteristics for business operators applying for a license or registration to engage in a designated payment service, and their directors. For example, applicants must not have been ordered to suspend or cease their operations, and their registration or license to engage in financial business or operate a designated payment system or service must not have been revoked. The notification defines “financial business” as including financial institutions, credit card business, personal loan business, securities business, and so on. In addition, applicants’ directors and management must not have prohibited characteristics, such as being involved in the management of a financial business or designated payment system or service that was ordered to suspend or cease its operations. The applicable registration or license also must not have been revoked. Reporting Requirements During the application process, Notification 2 requires applicants to disclose information on shareholders and related parties (including spouses) who hold an aggregate 10 percent or more of the total paid-up shares. Notification 4 imposes this same reporting duty regarding shareholders and related parties but applies it to licensed operators in an ongoing manner. Existing payment service operators must make their first report of this information to the BOT by September 6, 2023. Exemptions
July 12, 2023
On June 30, 2023, Vietnam’s Ministry of Information and Communications (MIC) issued Circular No. 06/2003/TT-BTTTT to provide implementing guidelines for Decree 71 on editing, ratings, and warnings for video on demand (VOD) sports and entertainment content provided over radio and TV services. Circular 06 will take effect on August 15, 2023. Because Decree 71 allows VOD providers to self-edit and self-rate this type of content, it is important for them to know how the process is regulated in order to fully comply before providing VOD sports and entertainment programs to Vietnamese users. Under Circular 06, radio and TV service providers are required to display ratings and warnings on their programs, following the principles set out in the circular. These service providers must also compile dossiers in a stipulated form on the editing, ratings, and warnings of their programs for reporting to the authority and inspection. The main contents of Circular 06 are as follows. 1. Content Editing The main principles for editing VOD sports and entertainment programs include: Protection of children and other vulnerable people from inappropriate or potentially harmful content. Removal of all illegal/prohibited content, as well as content related to controversial issues or issues not recognized by Vietnamese law. Removal of content or dialogue that disparages the origins of others or makes fun of others’ physical weaknesses, and content that is contrary to Vietnamese culture, morality and fine customs and traditions; Removal of programs if it is discovered during the editing process that in the program or at the venue of the event, there are images or activities violating the prohibitions of the law, violating Vietnamese fine customs and traditions, or containing sensitive political elements. In addition to compliance with the above-mentioned principles, sports and entertainment programs related to health, education, and online gaming must additionally meet the requirements of relevant specialized laws.   2. Content Ratings Under Circular 06,