On December 30, 2022, the Central Bank of Myanmar (CBM) updated its guidelines on the Thai baht to Myanmar kyat (THB-MMK) direct payment mechanism for Myanmar-Thailand border trade and other flows of capital. The CBM’s guidelines outline an expanded mechanism allowing more trade gates and more designated banks, stipulating banking arrangements for worker remittances, setting out a payment mechanism for exports, clarifying procedures for importing goods via the Myanmar-Thailand border trade, and instituting new reporting procedures. The THB-MMK mechanism came into being on March 3, 2022, as a pilot project for border trade in Myawaddy, Tachileik, and other areas approved by Myanmar’s Central Committee on Ensuring Smooth Flow of Trade and Goods. In this update, Myawaddy, Tachileik, Myeik, Kawthoung, Mawtaung, and other approved border trading zones are identified as open to the THB-MMK mechanism. During 2022, the following banks were approved to provide services for the THB-MMK direct payment mechanism: Approved March 4: Ayeyarwaddy Farmers Development Bank and Kasikornbank Public Company Limited Approved July 29: Myanmar Economic Bank and Bangkok Bank Public Company Limited (Yangon branch) Approved August 12: Kanbawza Bank (KBZ) and Bangkok Bank Public Company Limited (Yangon branch) Approved December 30: Ayeyarwady Bank and Bangkok Bank Public Company Limited (Yangon branch), CB Bank PCL and Bangkok Bank Public Company Limited (Yangon branch), UAB Bank and Krung Thai Public Company Limited, Myanmar Apex Bank and Siam Commercial Bank Myanmar Limited, Yoma Bank and Siam Commercial Bank Myanmar Limited Banking arrangements for workers’ remittances were also stipulated in the new update. In this regard, designated banks can process these remittances by partnering with CBM-permitted international currency transfer businesses, mobile banking service providers, and mobile money service providers after obtaining approval from the CBM. An addition to the direct payment mechanism is a requirement that exporters manage their received export earnings in accordance with the directives released by

Thailand’s Energy Regulatory Commission (ERC) has issued four new regulations under the Energy Business Act B.E. 2550 (2007) setting forth competition regimes to control both anticompetitive conduct and market structure in the energy business sector. The regulations were published in the Government Gazette on December 19, 2022, and took effect the following day. The key provisions of these ERC competition regulations largely mirror those articulated in the Trade Competition Act B.E. 2560 (2017) and its subordinate legislation. The most significant features of these competition regulations are summarized below. Market Definition Regulation The ERC’s market definition regulation (officially the ERC Regulation re: Market Definition and Relevant Market of Related Energy Services B.E. 2565) outlines the general framework for defining relevant markets in the energy sector. The factors to be taken into consideration include types of energy licenses, geographical areas, competition conditions, and interchangeability of energy services. In the annex to this regulation, the ERC has classified the relevant energy service markets as follows: Power business activities include power generation, power transmission system services, power distribution system services, power distribution services, and power system control services. Natural gas business activities include natural gas transmission through pipelines via natural gas transmission systems, natural gas procurement and wholesale via natural gas distribution systems, natural gas retail via natural gas distribution systems, and storage and regasification of liquefied natural gas. The ERC will review its market definitions and relevant energy service markets from time to time, taking into account changes in technology and competition conditions as well as feedback from public hearings. Market Dominance Regulation Under the ERC’s market dominance regulation (officially the ERC Regulation re: Criteria on Business Operator having a Market Dominance B.E. 2565), the ERC is empowered to proactively determine and declare which license-holding energy business operators have a dominant position or significantly dominant position under its criteria, subject

Indonesia’s current Trademark, Patent, Industrial Design, and Copyright Laws require all intellectual property (IP) license agreements to be recorded in order to have binding force for third parties. Since the enactment of Government Regulation No. 36 of 2018 on Recordation of IP License Agreements (GR 36/2018), recordation of IP license agreements has been carried out by Indonesia’s Directorate-General of Intellectual Property (DGIP). Even before the issuance of GR 36/2018, the DGIP had started receiving applications for recordation of IP license agreements after the Ministry of Law and Human Rights (MOLHR) issued an IP recordation implementing regulation under MOLHR Regulation No. 8 of 2016 on Requirements and Procedures for Recordation of IP License Agreements. However, as the mechanism for processing such applications had not been determined by the DGIP, the department left the requests unprocessed until the issuance of GR 36/2018. Prior to that, the preferred alternative was to file a letter of intention to record the license agreement with the DGIP so that related parties could rely on the letter in the absence of a regulation. This article outlines the general requirements for IP license recordation in Indonesia and considers how the current system works with the country’s laws and regulatory environment for copyrights—particularly the necessity to obtain proof of copyright ownership prior to recording a copyright license agreement. Overview of IP License Agreements As noted above, IP license agreements must be recorded in order to be binding for third parties. License agreements that are not recorded will not have legal effect against third parties, although they are still legally binding for the contracting parties. For an IP license agreement to be eligible for recordation under GR 36/2018, it must meet the following main requirements: The licensor must not grant a license if the term of protection of the relevant IP has lapsed or

The Contract Committee of Thailand’s Consumer Protection Board has issued new requirements and prohibitions for consumer loan agreements. The Notification of the Contract Committee Re: Stipulation of Loan Business for Consumers as a Contract-Controlled Business B.E. 2565 (2022) was published in the Government Gazette on December 13, 2022, and will take effect after 90 days (i.e., on March 13, 2023). The notification repeals and replaces the Contract Committee’s previous notifications regarding the same subject matter, which were issued in 2001 (Nos. 1–2), 2002 (No. 3), and 2015 (No. 4). The notification enhances protection for consumers by extending the scope of application and stringently regulating the content of agreements for loans to individual consumers. Key Definitions The scope of the notification is largely indicated by its definitions of a few key terms: “Loan business for consumers” refers to a business in which the operator enters into an agreement to grant a loan to a consumer (i.e., not a juristic person) or to allow the consumer to borrow money from the business operator, whereby the consumer will spend money for a purpose other than their occupation or business to earn income. This includes granting loans to consumers through an electronic channel. The notification can also apply to personal loan businesses, digital loan businesses, and peer-to-peer lending businesses regulated by the Bank of Thailand. “Business operators” include financial institutions under the law relating to financial institutions; banks established under specific laws; individuals who carry out a loan business in their ordinary course of business; and juristic persons that engage in loan business, securitization business, or asset management of rights to monetary claim. Certain types of businesses and organizations—such as cooperatives—are excluded from the scope of this notification. “Interest” means legal interest in accordance with the Civil and Commercial Code, and it includes compensation, profits, and other benefits with

The Thai parliament has passed the so-called Work from Home Bill—formally known as Labour Protection Act (No. 8) B.E. 2566 (2023)—which amends the country’s Labour Protection Act (LPA) to reflect current circumstances. The accompanying legislative remark states that the proposed amendments to the LPA will provide additional options for work arrangements between employers and employees, upgrade the level of labor protection, increase work stability, and improve quality of life for employees in Thailand. The legislation adds a single section to the LPA providing that an employer and an employee “may agree in the employment contract” that the employee is allowed “to bring work . . . to perform at home or at the residence of the employee or anywhere that the employee can work remotely through information technology, if the nature of the work permits.” The provision further provides that employers are responsible for ensuring that remote work agreements are in writing, either physically or electronically, and may include the following details: Period of the agreement; Normal working hours, rest periods, and overtime work; Criteria for overtime work, holiday work, and various types of leave; Scope of work and control or supervision by the employer; and Responsibility for arranging supplies and equipment, including necessary costs relating to the work. The amended LPA gives employees who work from home the right to refuse contact from the employer or the supervisor beyond working hours. In addition, employers must treat remote employees equally to on-premise employees. The most notable question surrounding this legislation is whether employers must allow employees to work remotely. The phrase “may agree” suggests that employers do not have to agree to allow an employee to work remotely. Another important aspect of the amendment is that there is no criminal punishment attached to it, which suggests that the legislation promotes remote work rather than penalizing any wrongdoing. The legislation

On December 20, 2022, Myanmar’s Department of Consumer Affairs (DCA) announced rules for recalling dangerous goods and temporarily or permanently halting the sale and distribution of dangerous goods and services. This announcement was made with DCA Directive No. 3/2022, which was posted to the department’s official website on January 5, 2023. Goods that can cause minor damage to consumers must be recalled. This includes goods that: Have potentially dangerous design flaws that were not clear at the time of manufacture but that can manifest during use of the goods; Have defects from the manufacturing process, transportation, or storage before their distribution; Have faults and defects that prevent use; or Do not comply with the relevant safety standards for dangerous goods. Sales and distribution of goods or services that cause major damage to consumers (short of death) will be banned temporarily in addition to their recall. Business owners must recall such goods within the period specified by the DCA, which decides on recall and temporary or permanent ban of dangerous goods and services under Myanmar’s consumer protection regulations. If goods or services can lead to or cause the death of consumers, sales and distribution of the goods or services will be banned permanently, and business owners must recall any existing goods within the period specified by the DCA. Procedures for DCA-Ordered Product Recall and Temporary or Permanent Ban Business owners are responsible for taking the actions described above within the specified period, and officers from the DCA office in the respective state or region can inspect businesses to ensure compliance with procedures for recalls and temporary or permanent bans. The inspector will verify that the relevant goods are recalled from the market in line with the specified period and in accordance with any other specific requirements on a case-by-case basis (such as a product recall in conjunction with provision

Indonesia’s new Criminal Code was passed by Parliament on December 6, 2022, and ratified by the president and promulgated on January 2, 2023, as Law No. 1 of 2023. The new Criminal Code will take effect after three years (i.e., January 2, 2026) and is a complete overhaul of the previous version, much of which was based on Dutch law drafted during the colonial period. The Criminal Code currently in effect (sometimes referred to by the initials KUHP after its Indonesian name), dates from 1918 and was codified and unified in 1946 following Indonesia’s independence the year before. Much of the news surrounding the new Criminal Code has focused on certain controversial passages in the new code, including articles that criminalize insulting the president, cohabitation, blasphemy, and sex outside of marriage, and limit the right to protest. Under the new Criminal Code, anyone found to have violated these provisions could be imprisoned for a period ranging from a few months to a few years. Apart from the more controversial provisions, several articles in the new Criminal Code relate to intellectual property (IP). IP owners should be aware of these provisions in order to avoid committing punishable acts and to understand the criminal enforcement options for their IP rights. The most relevant parts of the law are discussed below. Trademark and Branding Infringement Under the new Criminal Code, the misuse of marks on goods or packaging is punishable by up to four years in prison or a maximum fine of IDR 500 million (approx. USD 32,735), possibly including indemnity. This misuse covers various acts of wrongfully affixing marks on goods or packaging—such as when a counterfeiter makes use of fake or unauthorized branding to falsely imply that goods are genuine. Prosecution of these criminal acts can only commence based on a complaint from

The January–March 2023 issue of Asia Franchise & Business Opportunities magazine features an article by two franchising specialists in Tilleke & Gibbins’ Bangkok office. Written by Alan Adcock, partner, and Sher Hann Chua, consultant, the article provides a summary of the legislative developments of 2022 most relevant to franchisors and franchisees. The update looks especially at amendments to Thailand’s unfair trade practices in franchising, as well as the far-reaching Personal Data Protection Act, which is reshaping the way businesses—including franchises—are handling the personal data of customers, partners, and employees. The article is accompanied by a Chinese-language summary of the developments. The full article can be read online in the January–March 2023 issue of Asia Franchise & Business Opportunities.