On January 29, 2007, while Thai Prime Minister Sarayud Chulanont was trying to assuage concerns of foreign investors with vows to respect the rule of law, Thailand announced plans to break patents on Kaletra, useful for treatment of HIV/AIDS, and Plavix, useful for heart disease. More threats to use compulsory licenses to break further patents were later communicated. This article considers whether the TRIPS Agreement allows compulsory licensing of patents in this manner.

Two confusing economic theories mingled with commercial-economic perspectives often make the average businesspersons scratch their heads and frown. On the one hand, the policy of a free market economy encourages competition. On the other hand, because intellectual property rights (IPRs) are said to provide exclusive rights in a number of circumstances, IPRs are understood to be anti-competitive. This has led people to conclude that IPRs are monopolies, but this way of thinking is incorrect.

Since the coup in September 2006, the new government has been advocating a “reconciliation policy” (known in Thai as samarnachan). This policy is generally supported by Thai people as it is consistent with the informal processes for resolving disputes inherent in Thai culture. Based on this, alternative forms of dispute resolution would seem to be a natural fit with Thai culture. This article examines the framework for alternative dispute resolution under the current Arbitration Act.

The closing earlier this year of two major U.S. securitization transactions involving sizable trademark royalty components may finally provide the impetus for the lagging IP securitization market to take off. The USD 1.7 billion Dunkin’ Donuts securitization, which closed in May, was topped a few days later by a USD 1.8 billion deal involving KCD IP.

Any time that there is a reconsideration of the Thai tax system, an inheritance tax is inevitably considered. The introduction of this tax, however, has continually been rejected by wealthy people who are able to yield considerable influence at the level of policy control. Although Thailand has personal income tax, income and property acquired through inheritance are exempt from this tax. If the legatee subsequently sells the inherited properties, there is also an exemption provided in some cases.

Most employers make their best efforts to ensure that discipline of employees is legal and made for legitimate reasons. Despite their best efforts, however, employers frequently find themselves at risk of facing lawsuits related to the discipline or termination of employees. Unfortunately, the outcome in the Labor Court is not always favorable or satisfying. In fact, the result of court proceedings may include revocation of employer disciplinary orders or the issuance of orders requiring the rehire of terminated employees due to unfair termination.

Thailand has a rapidly growing economy and Internet penetration is on the rise, although the country still needs legislation to confront the emerging challenges of the Internet and e-commerce. The present state of Thai copyright, cyber-squatting, and related criminal law makes it clear that much needs to be done to ready the country for this next stage of modernization.

On January 9, 2007, the incumbent Cabinet appointed by the Council for National Security approved a bill to amend the Foreign Business Act 1999. The most significant issue was an amendment of the definition of “alien” to also include companies in which foreigners have the majority vote regardless of their ownership in the companies. This article discusses the details of the pending bill.