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June 14, 2011

Enhancing Government Relations in Thailand

Informed Counsel

The legislative process in Asia is increasingly opening up to public comment and participation. Smart companies take advantage of this by monitoring the latest developments and actively participating in informing, educating, and advocating knowledge with policymakers. By forming key relationships with policymakers, companies can improve their ability to successfully negotiate the bureaucratic obstacles that they may encounter when doing business in Thailand.

 

 

RELATED INSIGHTS​ 

August 27, 2026
It is generally understood that patents are granted for new designs that have not been widely known or used in Thailand and not been disclosed anywhere prior to the date of the patent application. It is trite law that design law protects the distinctive appearance or products. Under Section 3 of the Thai Patent Act B.E. 2522, as amended by the Patent Act (No. 2) B.E. 2535 and the Patent Act (No. 3) B.E. 2542, a design is defined as “any form or composition of lines or colors that gives a product a special appearance and can serve as a pattern for an industrial or handicraft product.” This raises an important question. Can a patent be issued for a product design that contains text, numerals, trademarks, or symbols that do not fall under the definition of a design? This issue commonly arises when attempting to register packaging, labels, and graphical user interfaces (GUIs). Until a few years ago, applicants could file design applications with the Thai Patent Office for designs that contained such elements, provided that an appropriate disclaimer was included. This practice was generally accepted by Thai design examiners at that time, but the Patent Office has since implemented a change in its practice that could have a significant impact on applicants for design patents. Where design representations are submitted as line drawings or computer-aided design (CAD) drawings, the examiner may now issue an office action requiring their removal. This practice, however, appears to be applied inconsistently, as some examiners still exercise their own discretion in determining whether drawings containing these elements are acceptable. Below are examples of a GUI design, a CAD drawing design, and a photographic design representation that illustrates issues relating to the presence of nonallowable elements. GUI design For this GUI design, the submitted
August 27, 2026
The Bank of Thailand (BOT) is seeking public feedback on a proposed overhaul of the regulatory framework for licensed money changers authorized by the finance minister, under the Exchange Control Act, to buy and sell foreign banknotes separately from commercial banks and specialized financial institutions. The BOT published the draft principles on August 19, 2026, for public consultation, with comments accepted through September 18, 2026. If adopted in its current form, the new framework would substantially raise licensing standards, require existing licensees to undergo a review and upgrade process, temporarily freeze new applications in 2027, and reduce application intake rounds from 2028 onward, with significant implications for both existing operators and prospective new entrants. The overhaul initiative stems from the BOT’s recognition of a need to prevent the use of licensed money changers as channels for financial crime. The stated objectives are to build public confidence, ensure the safety of financial service users, and align the supervisory framework with the current risk profile of the business and evolving market conditions. Upgraded Licensing Standards The BOT intends to significantly revise the licensing framework, including requirements relating to registered capital, branch management, operational standards, and customer transaction limits. Detailed criteria have not yet been released and are expected to be subject to further consultation. All existing licensees will be required to upgrade to meet the new standards and submit evidence of compliance for BOT review on a case-by-case basis. Existing licensees that are unable to satisfy the upgraded requirements may face regulatory consequences, subject to the final framework and BOT review process. Freeze and Reopening The BOT will temporarily stop accepting new license applications throughout 2027 to focus resources on inspecting and upgrading existing money changers. Any party wishing to obtain a new money changer license must submit its application by
August 27, 2026
On August 25, 2026, Thailand’s Ministry of Interior issued an urgent circular letter (No. MorTor 0515.2/Wor 19097) to all provincial governors, introducing enhanced enforcement guidelines for the investigation and prosecution of suspected nominee landownership by foreign nationals. The circular letter builds upon a prior circular letter issued on April 19, 2023 (No. MorTor 0515.2/Wor 7665), which first established the framework for provincial-level investigation committees and interagency cooperation on this issue. Under Thailand’s Land Code, foreign nationals are generally prohibited from owning land. To circumvent this restriction, some foreign nationals have historically used Thai nominees, whether individuals or Thai-registered juristic persons, to hold land on their behalf. Various government enforcement measures have been progressively strengthened in recent years. The new circular letter introduces three key measures: Expanded investigation committees. Provincial authorities must add representatives from specialized investigative agencies (such as local police superintendents) to the existing Fact-Finding and Investigation Committees, giving them broader access to shareholding data, tax records, immigration information, financial records, and evidentiary materials. Proactive screening of juristic persons. Provincial Land Offices are now required to actively screen and flag juristic persons (companies, partnerships, etc.) that show risk indicators of acting as nominees for foreign land ownership. The screening results must be referred to the investigation committees, which will determine whether the entity qualifies as a “foreign national” under the Land Code or was set up to circumvent the law. Two-track enforcement actions. Based on the committee’s findings, enforcement may consist of one or both of the following: Land disposal: If a juristic person is classified as a foreign national under the law, the provincial governor sets a deadline for the entity to dispose of the land under the Land Code. Criminal prosecution: If the entity was established specifically to hold land on behalf of a foreign national in circumvention
August 27, 2026
Franchising in Thailand has matured into a sizeable commercial sector, but the rules governing franchisor–franchisee relationships remain scattered across general legislation rather than consolidated in a dedicated franchise statute. In this environment, the decisions of the Trade Competition Commission of Thailand (TCCT) have emerged as valuable practical guidance. Thailand follows a civil-law system in which judicial and administrative decisions do not create binding precedent; however, past rulings are nonetheless influential. This article examines the most instructive recent TCCT decisions and distills the practical compliance considerations for franchisors and franchisees operating in Thailand. Postcontract Changes: Justified or Unfair? A recurring issue is whether a franchisor may alter the terms of engagement after contract execution. The TCCT has established that midterm modifications are not inherently unfair; the determinative factors are whether there was a reasonable business justification, adequate advance notice, and a transparent process. In a 2023 coffee franchise matter, for instance, the TCCT declined to find a violation where a franchisor increased raw material prices, noting the increase had been communicated in advance and supported by demonstrable cost pressures. A bubble tea franchise matter reinforces this principle. The TCCT found that postcontract mandatory purchases of branded syrup and flavorings were justified, as the agreement reserved the franchisor’s right to modify product requirements, the materials were sold at or below market prices, and the branded ingredients possessed distinctive qualities deemed essential to franchise quality. The complaint was dismissed, with the additional requirements characterized as a legitimate measure to preserve brand consistency. Considered together, these decisions indicate that post‑contract modifications will be evaluated against three criteria: (1) whether there is a legitimate business rationale, (2) whether adequate advance notice was provided, and (3) whether franchisees were treated equitably throughout the transition. Discriminatory Treatment: Are Renewals and Information Equal? A 2024 automotive dealership