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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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December 6, 2022
Thailand’s Department of Intellectual Property (DIP) has continued its strategy of enlisting the support of stakeholders from various sectors in the fight against infringement of intellectual property rights (IPRs) by introducing a memorandum of understanding (MOU) on advertising practices. This follows the success of last year’s MOU on Online IP Protection, which aimed to tackle issues of intellectual property (IP) infringement on various e-commerce marketplace platforms. That MOU represented Thailand’s efforts in bringing together relevant stakeholders to address online IP infringement issues in a unified and collaborative manner. The DIP’s latest such cooperative initiative is the MOU on Online Advertising and IPRs. A signing ceremony for the MOU was held on October 28, 2022. The DIP, three advertising associations, and various IPR owners all participated in the event, which took place at the Ministry of Commerce. Tilleke & Gibbins joined to sign the MOU as one of the founding signatory parties. The major parties to this MOU are: the DIP; advertising business operators (online advertisement producers and advertisement providers); associations related to advertising and media; IPR owners—particularly those experiencing IPR infringement problems in Thailand; and law firms. Objectives of the New MOU The objective of the new MOU on Online Advertising and IPRs is to build and enhance collaboration among IPR owners, advertising business operators, associations, and the DIP, with the goal of preventing and suppressing the production, distribution, and circulation of online IP-infringing advertisements and halting the income flowing to infringers from advertisements posted on IP-infringing websites or applications. This MOU addresses different issues in comparison to last year’s MOU on Online IP Protection. The latter addressed IP infringing merchandise on e-commerce platforms, whereas the new MOU tackles the issue of IP-infringing advertisements, as well as IP-infringing websites and applications, with more focus on infringing content than on infringing merchandise. Highlights of the New MOU A noteworthy practice introduced under
December 2, 2022
On November 11, 2022, Myanmar’s Ministry of Commerce (MOC) announced a pilot period for importing electric vehicles into Myanmar, which came into force with MOC Order No. 62/2022, issued under the Import and Export Law. A separate order (No. 61/2022) issued on the same day specifies rules for importation of motorcycles by companies that do not have a certificate to open a showroom, as well as rules for opening motorcycle showrooms. Electric Vehicle Importation According to the order, which takes effect January 1, 2023, “electric vehicles” includes only battery electric vehicles (BEVs) for both personal use and passenger use. In order to import electric vehicles into Myanmar without having a certificate to open a showroom, companies must: Be registered as a company, either wholly owned by nationals or a joint venture, at the Directorate of Investment and Company Administration (DICA); Be able to present the purchase and sales agreement for each brand of imported electric vehicles; Receive approval from the National Steering Committee for Development of Electric Vehicles and Associated Businesses, and import according to the quality and quantity of electric vehicles permitted by the committee; Arrange the necessary warranty, spare parts availability, and after-sales service for the imported electric vehicles; Deposit a bank guarantee of MMK 50 million at a bank recognized by the Central Bank of Myanmar; and Apply for a purchase permit at the MOC, for the purpose of registering the imported vehicles with the Road Transport Administration Department. BEV Tax Exemption Following MOC Order No. 62/2022, BEVs and their batteries are now exempted from commercial tax and special goods tax, which came into force with the Law Amending the Union Tax Law 2022 (State Administrative Council Law No. 48/2022) dated November 17, 2022. These tax exemptions will be effective from October 1, 2022, to March 31, 2023. Motorcycle Showrooms In addition to fulfilling the last three items
November 29, 2022
Cambodia’s new Sub-Decree on the Management of Commercial Advertising of Products and Services, issued November 4, 2022, is a notable step in ensuring that advertisers comply with advertising regulations, advertise ethically and legally, and avoid deceiving or misleading consumers. The sub-decree regulates both traditional advertising (e.g., print, broadcast, display, etc.) and digital forms (e.g., social media, online, mobile, etc.), and also includes provisions that address advertising alongside rewards—a popular method of advertising in Cambodia. The Ministry of Commerce is the authority tasked with issuing certificates of advertising compliance (more below) and is responsible for monitoring and assessing the compliance of advertisements with this sub-decree and related regulations. The ministry also enforces against unfair advertising through its Consumer Protection, Competition and Fraud Repression Directorate-General (CCF). Key Issues The sub-decree addresses a range of key issues relevant to companies advertising products and services in Cambodia. Licensing The sub-decree does not appear to set new licensing or permit requirements, but it requires advertisements for products and services to comply with the sub-decree, any existing regulations (unless they contradict the sub-decree), and future regulations. If regulations require a license for advertising, this should be obtained from the relevant authorities. One example is advertising of pharmaceuticals, which requires a license from the Ministry of Health under existing regulations. Types of Advertisement Under the sub-decree, advertising is divided into two types: advertisements with rewards and advertisement without rewards. Rewards may include souvenirs, lucky draws, and other rewards attached to the purchase of products and services. Forms of Advertisement Forms and means of advertising specified in the sub-regulation include the following: Advertising via audiovisual media such as TV, electronic broadcasting media (including both satellite and cable TV), and so on; Electronic advertising, such as websites, e-mail, electronic messages (in written, voice, or image form), ringtones, social networks, computer applications, and advertisements displayed on a phone
November 24, 2022
On November 24, 2022, Secretary-General of the Permanent Court of Arbitration (PCA) Marcin Czepelak and leaders of Vietnam’s Ministry of Foreign Affairs chaired the opening ceremony of the PCA’s Representative Office in Hanoi. Beyond its headquarters in The Hague, the PCA has opened offices in other cities to make its services more accessible in different regions. The Hanoi office will be the PCA’s fourth office outside its headquarters. The PCA, established in 1899, is an intergovernmental organization which provides resolution services for disputes involving states, state entities, international organizations, as well as private entities. It provides and administers arbitration, mediation, conciliation, and fact-finding commissions of inquiry. The PCA’s services are primarily used in Europe and Asia. In cases administered in 2021, approximately 47% of the disputing parties were from the Western European and Others Group of the United Nations Regional Groups, and 40% from the Asia Pacific Group. The majority of disputes resolved by PCA are state-related disputes; however, the PCA’s scope of settlement is also extended to the private sector. The PCA’s Hanoi office is staffed to administer PCA hearings and meetings and will provide administrative services in support of parties and arbitrators conducting arbitral proceedings under the PCA’s auspices, serving as the official channel of communications and ensuring safe custody of documents. The PCA can also provide such services as financial administration, logistical and technical support for meetings and hearings, travel arrangements, and general secretarial and linguistic support. Currently, Vietnam has some active members of the PCA. The opening of the PCA representative office is a step toward realizing commitments between Vietnam and the PCA in their protocol signed in 2021, and serving the evolving dispute resolution needs of states and other entities in the coming years. With the new office in Hanoi, it is expected that parties in the
November 23, 2022
The delisting of cannabis as a controlled narcotic in Thailand on June 9, 2022, was a breakthrough moment for the industry.  Not only are farmers and others in the industry elated that such a step was taken, it has triggered the establishment of an abundance of cannabis dispensaries in Bangkok and other popular domestic and international tourist destinations in Thailand, including Chiang Mai, Pattaya, Phuket, and many islands. Vulnerable populations, such as children, accessing cannabis has also become a hot-button issue. Thailand’s Ministry of Public Health (MOPH) was initially criticized by some for its policy of allowing cannabis to be sold with few restrictions. On June 17, 2022, the MOPH followed up with the Announcement Re: Controlled Herbs (Cannabis) under the Thai Traditional Medical Knowledge Act, which seemed to implement a viable mechanism to regulate cannabis dispensaries. This announcement contained prohibitions on selling cannabis to vulnerable populations (minors, expectant women, and breastfeeding mothers) and on smoking cannabis in public. Furthermore, the draft Cannabis and Hemp Act includes provisions related to sales and distribution channels and advertisements for particular dispensaries. However, the draft act has been delayed due to disagreements among some political parties during the reading of the legislation, and is unlikely to be implemented in 2022 as had been widely expected.  The tug-of-war among the political parties has caused concerns about whether the country’s recent liberalized cannabis policy will be revisited and cannabis relisted as a narcotic. With this uncertainty over when the draft Cannabis and Hemp Act will be implemented, the MOPH has focused on identifying gaps in current regulation that might allow the misuse of cannabis. The minister of the MOPH has announced that the MOPH announcement of June 17, 2022, will be repealed and replaced by the November 11, 2022, Announcement Re: Controlled Herbs (Cannabis). Unlike the
November 14, 2022
Every country has its own customs measures in place to monitor goods crossing its borders. These measures are implemented by customs departments and other government agencies that facilitate international trade by checking shipments and collecting taxes on goods that enter and leave the country. Laos is one of the many countries that have sought to create a favorable environment for operators to export, transit, move, and store goods. In addition to tax collection duties, the Lao Customs Department also has measures to safeguard IP rights and prevent unfair competition, including protections against the infringement of trademarks and copyright—measures that have been in place since 2011. This year, Laos further improved its framework for enforcing IP rights through border measures against infringing goods. In February 2022, the government published new customs instructions that added industrial designs to the list of safeguarded IP rights for the Lao Customs Department. This means that an IP owner can now request the Lao Customs Department to take action on products infringing a protected industrial design under the customs border measures. Procedures The Lao Customs Department enables IP rights holders to protect their IP by allowing them to request the suspension of clearance for any goods imported, exported, or transiting in Laos on the grounds that a trademark, copyright, or industrial design is being or is likely to be infringed. To be eligible for this protection, IP rights holders must submit a request for a Declaration of Ownership to the Customs Department. Once approved, the application is forwarded to the provincial and capital customs offices to serve as a reference for officers inspecting goods crossing the Lao border. The Declaration of Ownership should be accompanied by the relevant written form for inspection and supervision of goods that are the subject of IP rights. Various other information and documentary evidence is also
November 14, 2022
In copyright disputes in many countries around the world, experts who can provide professional opinions based on their deep expertise in specific fields play a very important role. It is the same in Vietnam when copyright disputes are brought to court. The judges and court staff may have almost no knowledge in specific areas of settlement such as fine arts, music, or computer programs. For this reason, they focus only on the legal aspect of the cases; however, the legal aspect can only be considered on the basis of analysis from experts, commonly known in Vietnam as “assessment” (or expert opinion). Assessment Has Become Essential For copyright disputes that are resolved in court, except in cases where the behavior is very clear, a court order only occurs when there are assessment conclusions. The legal basis for considering assessment conclusions as an important source of evidence can be found in the 2005 Law on Intellectual Property, as amended in June 2022, and its subordinate legal documents. However, the particular importance of assessment is not shown in legislation but rather in practice, through the fact that the courts and procuracies attach great importance to these assessment conclusions and treat them as necessary—sometimes even compulsory—documents from which they make their judgments and rulings. It is rare for a court to express any opinion on the contents of an assessment conclusion, and rarer still for a court to make a judgment or ruling that is contrary to the conclusion. Thus, it seems that assessment conclusions, though originally intended as reference points only, are becoming decisive documents in many cases. In other words, the party that wins the assessment conclusion is much more likely to win the case. An Obstacle to Be Resolved For better or worse, assessment has become very important in the process of settling a case.
November 14, 2022
Following the delisting of cannabis grown in Thailand as a narcotic substance on June 9, 2022, many have explored the applications of cannabis in various fields, including medicine, healthcare, food products, cosmetics, and animal feed. For example, a poultry farm in northern Thailand conducted an experiment jointly with Chiang Mai University, mixing crushed cannabis into poultry feed and water. The experiment showed several benefits of this cannabis feed. Birds that were fed cannabis had lower mortality rates and achieved superior body mass, with increased levels of protein, fat, and moisture in the meat, leading to this method of organic bird farming yielding higher profits. Despite the results of this experiment, the mechanisms and action of cannabis in animal feed are still not yet fully understood, and there are concerns about the possible effects on human health of consuming cannabis-fed poultry. Until recently, cannabis regulations focused solely on the safety of use by humans, and there were no regulations on the use of cannabis in animals. However, on October 11, 2022, the Department of Livestock Development (DLD) published Notification Re: Guidelines on the Use of Hemp and Marijuana as Especially Controlled Animal Feed or Their Use as Ingredients in Especially Controlled Animal Feed in the Government Gazette. In general, the DLD notification requires that animal feed containing cannabis be shown to benefit the animals without causing concern for their safety. According to the Animal Feed Quality Control Act B.E. 2558 (2015), especially controlled animal feed must be registered before it can be manufactured domestically or imported into Thailand. The DLD notification lays down the following evaluation criteria for registration of animal feed containing cannabis: It is prohibited to use cannabis (both hemp and marijuana) apexes (i.e., leaf tips), inflorescence, or seeds—including extracts from apexes, inflorescence, or seeds—as especially controlled animal feed or as an ingredient