You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

March 13, 2026

Brand Owners Maximize ROI Through Criminal IP Proceedings in Thailand

Subscribe to Updates
Managing Intellectual Property

For decades, intellectual property rights holders seeking to eliminate counterfeit goods from the Thai market have relied primarily on criminal raid actions to seize infringing products and hold infringers accountable. The deterrent value of this approach is typically threefold: imposing criminal liability on infringers, removing counterfeit goods from circulation, and subjecting violators to imprisonment and fines. However, these outcomes often fall short of fulfilling brand owners’ broader objectives. In many cases, those prosecuted are merely staff or intermediaries rather than the principals orchestrating the infringing operations. Moreover, any fines imposed are remitted to the Thai government—not to the rights holders who have suffered commercial harm and invested substantial resources in investigation and coordination with law enforcement authorities.

As in other jurisdictions worldwide, rights holders seeking monetary compensation for IP infringement in Thailand have traditionally pursued separate civil litigation. Before initiating such proceedings, a brand owner must gather sufficient evidence to establish both the infringement and the resulting damages. Notably, Thai law does not recognize punitive damages; courts award only actual damages proven by the claimant. In the absence of seized infringing goods, the damages awarded in such cases are typically minimal. This all leaves rights holders with limited recourse despite possibly having suffered significant commercial injury.

In 2005, Thailand amended its Criminal Procedure Code to introduce Section 44/1, which enables rights holders to claim damages within criminal proceedings at the Intellectual Property and International Trade Court prior to the evidentiary hearing. In practice, this mechanism allows an injured party to submit a petition for civil damages directly within the criminal case initiated by the public prosecutor.

Historically, rights holders in Thailand have been reluctant to use Section 44/1 because the compensation awarded by courts was often insufficient to justify the effort. However, recent years have seen a notable shift in how Thai courts assess damages in criminal IP proceedings when the injured brand owner files a claim for compensation under Section 44/1. This development offers significant advantages: brand owners can now avoid the burden of parallel civil litigation and recover damages within the same criminal proceedings.

Although this procedural tool has long been available, its practical impact is now more significant than ever.

How One Brand Owner Recovered Damages in a Criminal Prosecution

In a recent matter involving counterfeit consumer goods, the legitimate brand owner engaged Tilleke & Gibbins to conduct a market investigation aimed at tracing the source of infringing products. Beyond identifying retail outlets, the investigation mapped distribution channels, identified upstream suppliers and manufacturers, and gathered documentary and physical evidence sufficient to support criminal enforcement.

Based on the evidence collected, enforcement authorities conducted a raid action. The seized goods were confirmed to be counterfeit, and the police subsequently submitted the investigation file to the public prosecutor, who proceeded with criminal charges.

Once the criminal complaint was formally filed, the brand owner exercised its right under Section 44/1 to submit a petition for damages as the injured party within the same criminal proceedings. The damages claim submitted was structured into three main components:

  • Property damage and lost sales. Calculated based on the official wholesale price of the genuine product in Thailand multiplied by the total number of counterfeit units seized during the raid.
  • Damage to reputation and goodwill. Claimed as a lump-sum amount to reflect the unlawful exploitation of a globally recognized brand, dilution of distinctiveness, consumer confusion, and potential erosion of trust in widely consumed goods.
  • Enforcement and legal costs. Covering investigation expenses and legal fees incurred in tracing the source of counterfeit goods and supporting the raid action, supported by documentary evidence.

In cases involving consumer goods that may pose health or safety risks, Thai courts have shown heightened sensitivity. Likewise, in cases with counterfeit goods relating to products used in daily consumption or personal care, courts recognize not only trademark infringement but also the broader public interest dimension, as these counterfeit goods may endanger consumers and undermine trust in legitimate distribution channels.

In this case, the court rendered its judgment in favor of the brand owner, ordering the defendants to pay approximately half the total damages claimed. The court’s granting of the enforcement costs in full and awarding of a substantial amount for reputational harm was a clear recognition of the commercial and consumer impact of counterfeit goods.

This development signals an increasingly pragmatic and brand-conscious approach by the Thai IP Court, particularly in cases involving widely consumed products.

Strategic Implications for Brand Owners

This case illustrates how an enforcement action in Thailand can deliver both criminal accountability and financial recovery within a single proceeding. Specifically, it highlights four important considerations for businesses forming IP enforcement strategies in Thailand:

  • Investigation quality. As part of an integrated enforcement strategy, a well-documented investigation that traces supply chains and preserves evidence strengthens both criminal prosecution and any subsequent damages claim.
  • Substantiation of reputational harm. Courts are increasingly receptive to structured explanations of brand value, distribution networks, quality control systems, and consumer trust.
  • Claiming damages within Thai criminal proceedings. Invoking Section 44/1 offers efficiency and leverage by avoiding the time and expense of separate civil litigation and aligning with public prosecution.
  • Emphasizing consumer safety. Sectors involving consumer safety receive particular judicial attention. Brand owners operating in food, cosmetics, pharmaceuticals, personal care, and other daily-use product markets may benefit from stronger damage assessment where consumer risk is demonstrable.

International brand owners evaluating enforcement options in Thailand should note the Thai judiciary’s deepening engagement with the economic harm and implications of IP infringement. While the country’s specialized IP Court has long been a strong point, this further evolution shows that Thai courts are not merely focusing on punishing infringers but are increasingly recognizing the commercial consequences borne by brand owners.

As a result of this shift, raid actions in Thailand should no longer be viewed solely as deterrent measures. They are becoming financially rational enforcement tools capable of generating tangible recovery.

In practical terms, the return on investment in well-prepared raid actions has steadily improved. With careful evidence gathering, strategic formulation of damages, and effective use of procedural tools, rights holders can now achieve both criminal accountability and meaningful financial redress within a single proceeding. This is an important step toward more commercially aligned and brand-conscious IP enforcement in Thailand.

This article first appeared in Managing Intellectual Property.

Related Professionals

Practices

Dispute Resolution and Litigation

Intellectual Property

Location

RELATED INSIGHTS​ 

June 10, 2026
In March 2026, the Intellectual Property Office of Vietnam (IP Office) issued a decision refusing a trademark application after considering an opposition based primarily on copyright grounds. The outcome is noteworthy because the foreign brand owner had neither trademark registrations nor applications in Vietnam at the time the opposition was filed, and the IP Office has historically applied a stringent approach to oppositions relying on copyright. The Opposition Maurten is a well-known Swedish sports nutrition brand recognized globally for its innovative hydrogel technology, which is designed to help endurance athletes fuel more effectively without gastrointestinal discomfort. The brand’s distinctive logo is characterized by clean lines and a bold black-and-white color scheme, and has long been associated with the company’s performance products. The brand’s logo is displayed above. An identical mark was filed for registration by a Vietnamese trademark squatter. In 2023, a Vietnamese individual filed an application for registration of an identical mark (Application No. 4-2023-38668), a practice commonly observed in Vietnam as trademark squatting. The brand owner engaged Tilleke & Gibbins to assist with strategy and filing an opposition to the mark. At the time, Maurten had no trademark rights or meaningful use in Vietnam, and global marketing data showed only modest figures without any local presence. Thus, to convince the IP Office to refuse the squatter’s application, instead of relying on trademark rights or use evidence, the opposition strategy centered on the copyright protection of the logo itself, as copyright arises automatically in Vietnam upon creation of the work and does not require registration. (It is worth noting, however, that the IP Office has traditionally been cautious in accepting copyright as a basis for refusing trademark applications.) On September 24, 2024, an opposition was filed on three main grounds: confusing similarity, copyright infringement of the artistic work,
Read More
June 10, 2026
For multinational franchisors operating in Thailand, a key risk after franchise termination is that former outlets may continue operating in ways that could easily mislead consumers into believing they remain within the authorized network. To justify such operations, former franchisees often argue that the termination was invalid or ineffective. As a result, these cases are often treated as contractual disputes, making it difficult for franchisors to obtain injunctive relief before a final judgment confirms that the termination was lawful. Franchisors face significant commercial and reputational harm during lengthy proceedings, including consumer confusion, disruption to franchise restructuring, and damage to brand reputation and customer trust. In an encouraging development, the Thai court in a 2025 case responded to the problem of unauthorized post-termination franchise operations by granting interim relief, recognizing broader brand and consumer harm, and awarding substantial damages, highlighting a successful litigation strategy of framing the dispute not merely as a contractual termination issue but as trademark infringement causing ongoing commercial injury. The Subway Case From December 2024 to mid-2025, an unauthorized “Subway®” franchise operation in Thailand attracted substantial public and media attention. Reports and online discussions about unauthorized Subway® stores circulated widely after complaints arose about food quality and customer experience at certain outlets that were allegedly operating after their franchise rights had expired. Because these stores continued to use Subway® trademarks, trade dress, and overall commercial appearance, many consumers were unable to distinguish them from authorized operations, resulting in reputational risks and customer confusion that affected the franchisor’s brand and franchise system in Thailand. Subway treated this matter with the utmost seriousness and moved promptly to protect its brand, franchise system, and customers. It filed a civil action with the IP&IT Court seeking a permanent injunction and damages. During the proceedings, the court granted a preliminary injunction
Read More
May 25, 2026
Thailand published new rules on May 1, 2026, establishing clear procedures for how the Anti-Money Laundering Office (AMLO) handles digital assets seized during criminal and money laundering investigations. Taking effect the following day, the Regulation of the Anti-Money Laundering Board on the Custody and Management of Seized or Frozen Assets (No. 3) B.E. 2569 applies to digital asset businesses, cryptocurrency holders, and anyone subject to asset seizure under Thailand’s anti-money laundering laws. For the first time, authorities now have a detailed roadmap for transferring seized digital property from private or foreign control into secure state custody. Digital asset businesses holding customer assets under investigation must be prepared to comply with these rules compelling repatriation of such assets in enforcement actions. Expanded Definition of Digital Assets The regulation defines digital assets to include not only those covered by Thailand’s existing digital asset business law but also any other property that can be stored using the same methods as digital assets. This broad formulation means the custody rules will apply to emerging blockchain-based assets and tokenized property that may not yet fall within the statutory definition of a digital asset business, giving authorities flexibility as the technology evolves. Mandatory Transfer to Domestic Custody When digital assets are held with service providers outside Thailand, AMLO will first attempt to transfer them to an account the office maintains with a licensed domestic digital asset business operator. If the domestic operator does not support that particular asset, the office will instead move the assets to its own cold wallet (offline, internet-isolated storage system). If neither option is feasible, the seizing official will report the situation to the Anti-Money Laundering Committee for alternative instructions. A similar hierarchy governs assets held in an accused party’s private wallet or by any third party that is not a
Read More
May 22, 2026
Intellectual property specialists from Tilleke & Gibbins in Vietnam have contributed an updated Intellectual Property Transactions in Vietnam overview for Thomson Reuters Practical Law, an online publication that provides comprehensive legal guides for jurisdictions worldwide. The Vietnam overview was authored by Linh Thi Mai Nguyen, Thanh Phuong Vu, Chi Lan Dang, Son Thai Hoang, and Duc Anh Tran. The chapter provides a high-level examination of key aspects of IP transactions law in Vietnam, including IP assignment and licensing, research and development collaborations, IP in mergers and acquisitions (M&A), lending and taking security over intellectual property rights, settlement agreements, employee- and consultant-created IP, competition law, taxation, and non-tariff trade barriers. Key topics covered in the chapter include: IP assignment: Basis and formalities for assignments of patents, utility models, trade marks, copyright, design rights, trade secrets, confidential information, and domain names in Vietnam. IP licensing: Scope, formalities, and recordal requirements for licensing patents, trade marks, copyright, design rights, and trade secrets. Research and development collaborations: Treatment of improvements, derivatives, and joint ownership of IP, including exploitation and enforcement issues. IP aspects of M&A and security: Due diligence, warranties, transfer formalities, and taking security over intellectual property rights. Practical Law, a legal reference resource from Thomson Reuters, publishes a range of guides for hundreds of jurisdictions and practice areas. The Intellectual Property Transactions Global Guide is a valuable resource for legal practitioners seeking comparative insight into transactional IP issues across multiple jurisdictions. To view the latest version of the Intellectual Property Transactions in Vietnam overview, please visit the Practical Law website and enroll in the free Practical Law trial to gain full access.
Read More